HONG Kong-based Bank of East Asia intends to enter the non-collateral individual credit market soon to grow its lending business, and will become the third overseas lender to offer it, which is still new in China, a source said.

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

Overseas banks are expanding their product line in China in the retail banking business. Banks including HSBC, BEA and Citigroup have set up local incorporation in China to offer the full spectrum of retail banking to Chinese and gain full access to the market.

The business of non-collateral individual credit debuted in China in 2007 when Standard Chartered Bank was the first to introduce it in the world's fastest growing economy.

The credit product, which doesn't need any collateral and whose risks are seen higher than loans which require collateral, charges an interest rate higher than the benchmark rate. Borrowers can't use it for mortgages or for shares. Most use it for home decoration, wedding and for travel.

Citigroup last month launched its unsecured individual credit product while Bank of Ningbo offers a one to civil servants and professionals.