China's big 4 state-owned banks have agreed to offer preferential loans to home-buyers. It follows an earlier move by smaller lenders, which recently slashed rates by up to 30 percent. But it is not easy for consumers to enjoy the preferential policy.

Insiders say the rate cut means banks' revenues will shrink. This is why they are reluctant to offer preferential loans to home-buyers.

At the beginning of this year, big banks finally gave detailed information about the conditions for loan applicants who want to qualify for the 30 percent reduction in interest rates.

Although banks have the credit information of their customers, most home buyers have not been able to automatically enjoy the reduction. The rules require customers to go to their bank outlets with ID cards and loan contracts. Most of the banks have not given customers notice about the preferential interest rate.

Employee of Bank of Communications said "Customers have to contact the bank where they get the loans and apply for the preferential rate. The bank will check applicants' information first, if approved, customers have to go to the bank with certain papers."

Only a few banks have so far contacted loan applicants, using text messages or phone calls to tell them about the lower interest rates.

Employee of Chine Merchants Banks said "We will definitely inform our customers, but it needs time and a process. Maybe customers will receive our text messages in the near future."

Experts suggest that if home buyers fail to pass default record checks in one bank, they can transfer their housing loans to another bank and retry their application.

(CCTV January 13, 2009)