Core Viewpoint - Several banks have launched limited-time discount promotions for cash installment services, with some products' installment fee rates as low as 1.7% of the original rate, resulting in annualized rates below 3%, with a minimum of 2.76% [1][2] Group 1: Bank Promotions - Major banks like China Merchants Bank and CITIC Bank are offering significant discounts on cash installment services, with China Merchants Bank's "e-zhaodai" product offering a limited-time rate of 1.7%, leading to an annualized rate of 2.76% for 12-month installments [2] - CITIC Bank's "borrow cash" service offers a limited-time interest discount of 1.9%, resulting in annualized rates of 3.09% for 12-month and 3.19% for 24-month installments [2] - Other banks, such as Bank of Communications and Ping An Bank, have also introduced cash installment discounts, with rates ranging from 5.46% to 5.11% for longer terms [3] Group 2: Market Dynamics - The recent surge in low-interest promotions is partly a response to regulatory measures that set a minimum annualized rate of 3% for consumer loans, while cash installment services are not subject to this regulation [2][4] - Banks are adopting a "volume compensates for price" strategy, significantly lowering installment rates to attract customers and expand retail credit scale within compliance frameworks [4] - This strategy is seen as beneficial for consumers, reducing short-term funding costs and supporting large consumption needs, aligning with macroeconomic goals of expanding domestic demand [4] Group 3: Industry Concerns - Industry experts caution that excessive reliance on low-price competition in cash installment services could pose risks for banks, potentially affecting net interest margins and profitability in the long term [5]