Rural banks in China have created a public stir by targeting low-income earners and the elderly with loan products designed to plug their pension shortfalls as lenders get creative amid soft borrowing demand.
Banks in Hunan and Sichuan provinces have over the past few months offered loans for borrowers to increase their contributions to China’s social insurance system in order to draw higher pensions or for making a one-time payments to qualify for old-age benefits.
www.bloomberg.com
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