Hunan introduces "pension loan": interest rates exceed those of the housing loans in Changsha

According to statistics, since May, at least 30 rural commercial banks in Hunan Province have launched "pension loans". Many banks have already officially announced the issuance of the first "pension loan". Simply put, "pension loan" means that the borrower borrows a lump sum of money from the bank to make up for 15 years of high-end pension insurance premiums, so that they can receive more pension after retirement. However, the preferential annual interest rate of the so-called "pension loan" is generally between 3.1% and 3.45%, and many banks specifically state that the loan interest rate is "fixed with no fluctuations and no additional fees." It is important to note that this is higher than the 3.05% mortgage rate in the provincial capital city of Changsha, and if the central bank continues to lower the LPR in the future, the "pension loan" will not be able to enjoy the benefit of lower interest rates and will further exceed the mortgage rate in Changsha.