Over 20,000 Chinese students take out high-interest loans to buy Apple Devices

“Over 20,000 college students have taken high-interest loans to buy fancy electronic products, mostly Apple devices, in Central China’s Wuhan city,” Xinhua reports.

“From the start of January 2012 to the end of February 2013, the students have applied for loans with a total value of 160 million yuan ($25.76 million) from Home Credit China (HC China), a subsidiary of international investment business PPF Group,” Xinhua reports. “With around 1 million students in Wuhan, it means about one in 50 of them are shouldering HC China’s heavy annual interest rates of up to 47.12 percent on a 12-month-term loan.”

Xinhua reports, “About 90 percent of the credit was used to buy Apple products, such as iPhones and iPads, and other high-end electronic products, Liu Mingwei, Wuhan regional manager with HC China, on Wednesday.”

Read more in the full article here.

MacDailyNews Take: It’d be nice if Apple, having created such a deep desire for their products, could figure out a way to make more reasonable loan terms available to students in China.

[Thanks to MacDailyNews Readers “Fred Mertz” and “Dan K.” for the heads up.]

30 Comments

  1. “It’d be nice if Apple, having created such a deep desire for their products, could figure out a way to make more reasonable loan terms available to students in China.”

    Why? Because you don’t like seeing Chinese students paying 47% interest?

    It’s called free will. Just because you don’t like the rate doesn’t mean others don’t. Obviously those students found enough utility in the products they bought to warrant paying the price and the interest.

    These rates are no different than HFC (or other lender) short term rates right here in the USA. Its no different that charged by Title Loan companies. Its called APR.

    Blows the hell out of the need for cheaper Apple products though, doesn’t it.

    1. You heartless bastard. Everone makes mistakes and you sound like you’d love to be the executioner when they do. Free will is no excuse to take advantage of people. Your attitude reminds me of people who forget why we have protections against past abuses. Living in a wealthy country it’s easy to look down at the tragic circumstances of others. Your post shows no understanding of history, no compassion and no perspective.

      1. You are so right. Make sure that these students never feel the consequences of their choices. This is the best way to teach them to be in the free enterprise world. Teach them about bankruptcy planning as well. Isn’t there an app for that?

            1. If this was happening in the U.S., there would already be a class-action lawsuit demanding that Apple pay the penalties for these students.

    2. I’m with BLN, you are a dick AND use BS logic.

      1. China does not celebrate “free will” you moron.

      2. You ASSume the students like paying 47% interest? BULLSHIT, it is likely the only option. They likely have little choice but to take on the outrageous interest rate if they want equipment. Economic slavery is what it is. Why is you “free-market” fucks think it is okay to gouge the poor? Just because you can do something, doesn’t mean you should.

      3. No dickface, it doesn’t blow the ‘need’ for inexpensive equipment out of the water. If anything it highlights the opposite. $500 interest on a $1100 computer is reasonable to you? You must be a banker. You are most definitely a heartless prick and an immoral asshole.

    1. Not to mention that, assuming they can comply with all local regulations, it’s an opportunity for Apple to make some money off those finance charges.

      Doesn’t Apple own Juniper, the finance company in America that offers the same-as-cash deals offered on Apple gear? Can they expand to China?

    2. Me too. Offer at a reasonable rate, say slightly more than they earn through Braeburn.
      Don’t they offer low cost payment plans in India?.
      If you can earn more than your cash pile currently earns, offer a good deal to customers and increase market share, why not?.

  2. MDN says: It’d be nice if Apple . . . could figure out a way to make more reasonable loan terms available to students in China.

    Exactly. This isn’t an era to go into debt, especially for students, even for most excellent Apple gear. 47% is approaching loan shark territory. Total rip. Obvious exploitation. 🙁

      1. I actually used to work with a loan shark waiter back when I was 15, a busboy at a local restaurant. For a short term small loan 50% was the starting point. Bigger stuff was 100% or higher. The guy was infamous for beating up dead beats in the back hallway. He was also the WORST tipper and you had to work your butt off for him. Working for him was the busboy curse.

  3. This is a… Wait for it… Credit Card!!!

    High interest loans are not new. 80% of Americans hold large amounts of high interest debt.

    The effect is the same. Name the ‘instrument’ anything you wish.

  4. That’s odd. I thought analysts said that consumers in China will only be buying $150 Huawei and ZTC smartphones and supposedly Apple products like iPhones have lost their “cool” factor among younger consumers. That’s why analysts keep saying Apple has to sell a much cheaper iPhone or every rival smartphone company will easily put Apple out of business.

    Isn’t Apple going to offer long-term installment plans with low-interest rates for their products? If so, with Apple’s cash pile, it would be a great idea to be a lender like that. There would definitely be long lines for Apple products in China.

  5. Am I the only one that saw sarcasm in MDN’s take? It seems that you may all be suffering from “sarchasm”.

    Along the likes of, it’s obviously apple’s responsibility to ensure people have access to good credit terms because their products unfairly create the desire to own them. Same as saying its apple’s responsibility to ensure iPhones are available to villagers in 3rd world countries because withholding their amazingly crafted technology from those unable to afford it is a crime against humanity!

    Should Ferrari ensure that people who take out car loans to buy their cars can afford it or is that the job of the financial institution which gives them the loan?

    Correct me if I’m wrong MDN, but that’s the take I took from your take.

  6. I think we losing sight here. Anybody check the credibility of this story?

    “About 90 percent of the credit was used to buy Apple products, such as iPhones and iPads, and other high-end electronic products, Liu Mingwei, Wuhan regional manager with HC China, on Wednesday.”

    Why is Apple made very prominent in this story, but no mention made of the manufacturer of “other high-end electronic products” ?

    It’s almost like the ‘plot’ of this story was designed to portray Apple as the evil culprit ‘causing’ students to go into debt (sell their kidneys) and what not…

  7. My take on MDN’s take is that Apple should do what’s in the best interest of Apple. Leverage your position. Create good will while you’re at it. Win new long-term customers who’ll buy your stuff over and over again.

  8. And Apples financing partnership in the United States is definitely at the high end of interest. I believe it is 21 or 22%. I had a couple of my students use the Apple CC to buy MacBooks. Their free-will.

    Also, a lot of average people in China are not bankable, which likely reflects the very high interest rates.

  9. This nicely shows how much better saving for something you like to buy is, compared with taking out a loan – especially, if what you want to buy is deprecating fast in value.
    Not taking out a credit at nearly 50% interest rate should be a no-brainer – unless the inflation rate is near or over the interest rate, of course.

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