I use this "HuaBei". I wouldn't call it "borrowing". Actually the Ant-finance have another product called 'JieBei' which means 'just borrow'.
"HuaBei" works like the credit card, if you pay within the 1 month, you don't need to pay interest.
There are the following reasons encourage people to use this.
- 1) You get cheaper product (not a lot, but still cheap)
- 2) If you use this HuaBei and pay off on time, you'll get higher credit score which is called 'sesame credits'. With it, you can go to the hotel without paying in advance. Or you can use it as the finance statement when applying VISA.
- 3) Ant finance also have funds products. The most used one is 'YU'E bao'. It is monetary fund. The yearly interest rate for now is around 2.3%(used to 4%). You can deposit and withdraw any time. If I don't pay the product with debit but the "huabei", after 1 month I got more money.
"HuaBei" works like the credit card, if you pay within the 1 month, you don't need to pay interest.
There are the following reasons encourage people to use this.
- 1) You get cheaper product (not a lot, but still cheap)
- 2) If you use this HuaBei and pay off on time, you'll get higher credit score which is called 'sesame credits'. With it, you can go to the hotel without paying in advance. Or you can use it as the finance statement when applying VISA.
- 3) Ant finance also have funds products. The most used one is 'YU'E bao'. It is monetary fund. The yearly interest rate for now is around 2.3%(used to 4%). You can deposit and withdraw any time. If I don't pay the product with debit but the "huabei", after 1 month I got more money.
(I feel like I should write a blog about this ;)
For me, the reason 2 is the most important one.