The recently introduced interest-free decoration loan has caught the attention of many consumers. As more people look for flexible payment options, the question arises: which companies in the home furnishings industry offer such services? Is the process complicated or worth considering? Let's find out.
**Buying furniture and decor can now be done through loans**
According to our investigation, several major home improvement companies and banks have started offering financial solutions. These services cover a wide range of areas including decoration, building materials, and furniture. For example, Home (a fictional name) collaborates with the Bank of China, allowing customers to apply for up to 300,000 yuan in loans, with repayment terms of one, two, or three years, though some fees may apply. Red Star Macalline also partners with multiple banks to provide convenient credit card installment options. Many well-known home improvement companies in Beijing have partnered with major banks, and some even offer interest-free and fee-free services. While not all companies publicize these options, they often say that if a customer expresses a need, they can usually accommodate it.
Consumers we spoke with said they would consider loans if their budget was tight, and even when funds were sufficient, they found it beneficial to use financial incentives rather than drain their savings. If the fees are low and the application is easy, they would definitely consider applying. Industry insiders noted that banks are actively promoting these services, and most consumer needs are met.
**Not all loans are the same**
How easy is it for consumers to get a loan? According to merchants who offer such services, there are two main types of financial products available, each with different features and application processes.
The first type involves increasing a credit card limit and then charging a fee based on the installment period. Fees can range from 0% to 12%, depending on how long the payments are stretched. This method is relatively simple, requires less information, and varies by partner.
The second type is applying directly for a home improvement loan through a cooperating bank. Banks like ICBC, CCB, and ABC have launched specific programs for this purpose. The maximum loan amount can reach up to 500,000 yuan, but applicants must meet higher income requirements and provide more documents, making the process longer.
Banks also run promotions with merchants, offering incentives and simplifying the application process to attract more customers. Some merchants enjoy better terms and convenience due to their partnerships with banks. For instance, a certain company offers a 12-month interest- and fee-free installment plan.
**Merchant enthusiasm varies**
During our investigation, we found that some merchants are not very enthusiastic about offering loans, only providing them when requested. Others, however, have formed strategic partnerships with banks and actively promote the service to customers and designers. As a result, the number of consumers applying for loans varies significantly between different merchants. In some cases, only a few applications are made, while in others, a significant portion of customers opt for this option.
Most merchants who offer these services have dedicated staff to handle inquiries. However, we also encountered some that used the service as a marketing tool. One high-end decoration company advertised an installment loan service on its website, but when contacted, the customer service line was just a general number, and the staff had little knowledge of the actual program. After several calls, the reporter received no clear information about the service, highlighting the inconsistency in how these offers are presented.
**List of Merchant Financial Services**
**Furniture & Building Materials**
**Home (Fictional Name)**
**Cooperative Banks: Bank of China, ICBC, Agricultural Bank of China**
Home works with the Bank of China to allow customers to increase their existing credit card limits for purchases. Customers sign a contract at the store and then apply for installment services at the bank. The maximum quota is 200,000 to 300,000 yuan. They also offer residential installment loans for building materials and decoration.
With ICBC, users can apply for installment plans without increasing their credit limit, enjoying 0% interest and 0% fees for 12 months.
For premium brands, the Agricultural Bank offers special credit loans, with a maximum of 500,000 yuan.
**Red Star Macalline**
**Cooperative Banks: Bank of Beijing, Agricultural Bank, CCB, ICBC, Bank of China**
Red Star Macalline mainly offers credit card installments, with options ranging from 3 to 36 months. Longer periods mean higher fees, typically between 1.2% and 12%. Minimum spending per transaction is 500 yuan.
**Home Decoration**
**Industry Peak**
**Cooperative Bank: Bank of China**
Maximum loan amount is 300,000 yuan. Applicants must hold a BOC credit card or apply on-site. The bank increases the credit limit based on the decoration cost and handles the entire process, so customers don’t need to go to the bank themselves.
**Actual Home**
**Cooperative Bank: Agricultural Bank**
Applicants need to submit the decoration contract, material budget, personal ID, proof of employment, and income documentation. The maximum non-interest loan is 500,000 yuan, with repayment terms of 12, 24, or 36 months. The 12-month term is fee-free, but a 30% down payment is required.
**Wide Decoration**
**Cooperative Bank: Construction Bank**
Customers fill out an application, submit wage statements, property documents, etc., and after approval, they can swipe a special POS machine to access a 20,000–300,000 yuan quota. The first six months are interest-free and no handling fee.
**Third-Party Loans**
Youyoubao offers a low-barrier renovation fund. Citizens aged 18–60 with stable jobs and good credit can apply via their WeChat account. Funds can be used for decoration, furniture, and materials. Applications take 3–4 working days, and approved amounts are paid directly to the merchant. Repayment is interest- and fee-free over 12 months.
Youyoubao also verifies merchants to ensure quality, and if the chosen merchant is not certified, they will check it before lending. Currently, it includes over 30 certified merchants like St. Mark and Yiyuanmumen.
Guangzhou Liben Plastic Industry Co., LTD , https://www.libenbaby.com