BANK of East Asia is poised to step into the non-collateral individual credit market to bolster lending growth, a source said.

The Hong Kong-based bank is the third overseas bank to offer the product, which is still new in China.

The maximum credit will be more than 200,000 yuan (US$28,571), the unnamed source said.

Overseas banks are expanding product lines in China. Overseas banks including HSBC, BEA and Citigroup incorporated locally in order to provide retail banking services.

Standard Chartered Bank first introduced non-collateral individual credit in China last year.

The loan charges a higher interest rate than the benchmark rate since banks take a higher risk without any collateral. Borrowers are banned from using such loans for mortgages or stock investments to reduce risk. People take the loans for such things as home decoration, weddings and travel.

Citigroup last month launched unsecured individual credit while Bank of Ningbo offered similar products to public servants and professionals.