Many people opt for loans when buying a house, which means that they pay on time every month. So can consumer loans be used to repay the mortgages when the funds are tight? Apart from that, are there other uses for consumer loans

What's it for

First, it is clear that consumer loans cannot be used to repay housing. Consumer lending is a financial product that is earmarked for consumption, and lending (i.e., mortgages with consumer loans) is not permitted. If the lending institution finds that the consumer has used the consumer loan to repay the mortgage, it may require the borrower to pay the full amount of the arrears in advance。

The use of consumer loans is severely restricted. According to the regulations of financial institutions, consumer loans can be used only for the purchase of durable consumer goods or for various consumption costs. Loan institutions monitor the use of funds and, if they are found to have been diverted, for example, to repay mortgages, stock exchanges or investments, they are likely to take immediate steps to obtain early repayment of loans。

Typically, consumer loans can be used for multiple consumption needs. For example, in the area of daily consumption, it can be used for household expenses, the purchase of basic necessities, etc., and in the area of large consumption, it can be used for tourism, the purchase of cars, the renovation of houses or the purchase of household electricity. As long as it is a legitimate consumer use, the use of consumer loans is consistent。

Consumer loans are now well received, and major financial institutions have introduced various consumer-lending products. However, in the process of use, the loan funds need to be used in a rational manner, as required. Irregular use of loan funds may not only lead to a breakdown of the financial chain, but may also face sanctions from financial institutions. Users must therefore comply with the relevant requirements in order to avoid unnecessary inconvenience。