Core Viewpoint - The personal business loan interest rates in the market are showing a divergent trend, with some banks offering rates below 3%, while others have slightly increased their rates due to rising risks and pressure on net interest margins [1][4]. Interest Rate Trends - Several banks, including China Construction Bank, Bank of Communications, and Jiangsu Bank, have launched personal business loan products with minimum rates below 3%, with some as low as 2.4% for secured loans [1][2]. - Some banks are collaborating with local governments to offer preferential interest rates, potentially bringing rates below 2% [2]. - However, not all banks are reducing rates; some have maintained rates above 3.5% due to concerns over asset quality and rising risks associated with personal business loans [4]. Customer Quality and Demand - There is a noted scarcity of high-quality clients for personal business loans, leading to increased competition among banks [3][6]. - Many borrowers are accustomed to low rates, with some considering 2.7% as high, indicating a shift in customer expectations [3]. Risk and Asset Quality Concerns - The non-performing loan (NPL) rates for personal business loans have been rising, with banks reporting increases in both the balance and rate of NPLs [5]. - Bank executives have indicated that the asset quality pressure is expected to persist, especially in a more complex external environment in 2025 [5]. Competitive Landscape - The strategy of lowering interest rates to attract clients is becoming less effective, as the demand from business owners remains insufficient [6]. - The net interest margins for many banks are under pressure, with over 40% of listed banks reporting a year-on-year decline in net interest income [6]. Regulatory and Operational Considerations - There are concerns that excessively low interest rates could lead to irresponsible borrowing, increasing debt burdens for individuals and businesses [7]. - Financial institutions are encouraged to adopt a "cost recovery" principle and improve their pricing capabilities to better serve different customer segments [7].