BEIJING : Home buyers in China's capital Beijing were warned not to be tempted by loan brokers to illegally use business loans with lower interest rates to fund their purchases, state-backed Beijing Business Today reported.
Interest rates on business loans are around 4.0 per cent, according to Beijing Business Today. While mortgage rates range from 5.0 per cent to 5.5 per cent. But such illegal schemes have persisted, which have an added risk of exposing home buyers to the possibility of not being able to pay back the business loan, which typically have far shorter maturities, when it is being called in.
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