In the past year or so, banks were unwilling to provide automobile loans because of the high NPL ratio that occurred as a result of car price drop. Now that the individual credit information database is established and contains information of every loan borrowed by an individual, default on one loan will affect future borrowing.
This has served as a strong impetus for prompt repayment of loans, and created a good environment for consumer credit growth in China. Student loan is a major policy measure taken by the government to improve the higher education financing policy system and a strategic measure that bears on China’s future development.