Vietnamese New Year period, consumer credit increased

27-Jan-2021 Intellasia | Thoi bao Ngan hang | 7:22 AM Print This Post

Repulsing and moving towards abolishing black credit needs consistency in the involvement of ministries, branches and localities. The system of credit institutions is always ready to source capital to meet the legitimate borrowing needs of people.

Lunar New Year is coming. These are the days when the cash-commodity turnover increases in the economy when the consumption demand of the population increases dramatically. To reschedule, the demand for consumer credit of many people becomes urgent, making the black credit problem have a chance to break out.

Last week, speaking at the seminar “Identifying and repelling black credit activities” on January 20, Standing deputy Governor of the State Bank of Vietnam (SBV), Dao Minh Tu affirmed: “All forms of black credit are illegal law, not considering black credit as an object for formal credit institutions to compete “. The deputy Governor asked credit institutions to strengthen and participate more deeply in the market, to meet the people’s legitimate capital needs. When consumers have many opportunities, a lot of loan options in the official channel, black credit will be narrowed and pushed back…

From January 25, 2021, consumers have more opportunities to access capital when Vietnam National Payment Joint Stock Company (Napas) alliances with six commercial banks: VietinBank, Viet Capital Bank, ACB, HDBank, BaoViet Bank, Sacombank issues domestic credit chip cards and debit cards according to the basic standards issued by the SBV. This information is especially interested by the market because the biggest feature of domestic credit cards is that customers can spend first, pay later with interest free period up to 55 days. Cardholder transact within the limit set by the card issuing bank, up to 100 million dong. Those who want to shop on Tet holiday, can spend first, pay later at a more reasonable cost.

In particular, cardholders can withdraw cash at ATMs nationwide with a fee of only about 1.1 percent 1.3 percent of the transaction value. This cash withdrawal fee is much lower than the currently applied international credit cards commercial banks are 4 percent of the transaction value (or collect the minimum cash withdrawal fee from 70,000 dong per transaction). The bank does not encourage customers to withdraw cash via credit cards, but for cardholders with small businesses, especially items for Tet, this is an opportunity to add investment capital when shopping needs increase dramatically.

In fact, for many years, consumer credit has been a business segment that has always been focused on by commercial banks. If customers need consumer loans, customers can approach any commercial bank. Not only customers need, but the banks themselves also really need customers, so the consumer credit products offered by credit institutions in the market are diverse, simple procedures, competitive interest rates, repayment term flexibility… Besides, a lot of commercial banks and financial institutions also “attach” to consumer credit products for many other utilities to attract customers.

For example, at Techcombank consumer loans customers do not need collateral or deposit; the maximum loan amount is up to 10 months of actual income (not over 300 million dong); loan term is flexible from 6 months to 60 months, depending on the financial ability of the customer. At VPBank, customers only need 5 minutes to register for unsecured consumer loans on VPBank Online. Customers do not need any paperwork; disbursement online after just 1 minute; loan limit from 10 to 100 million dong; loan term: 6 months 60 months; interest rates fluctuate from 15.99 percent per year and calculated on decreasing balance. Customers can check specifically on VPBank Online; interest and principal are paid monthly… At HDBank, when customers want to borrow unsecured consumer loans, customers can find out information right on the bank’s website. In addition to information about the loan term, loan amount… customers can enter the data of the loan amount, loan period, interest rate, the software will automatically provide the customer with a spreadsheet. Principal and interest are payable monthly. Thus, if customers “hesitate” to go to the bank or want to compare and find consumer loan products that suit their needs, their personal financial ability is very easy and fast. In addition to consumer lending products of commercial banks, customers can access loans from finance companies. There are currently 16 financial companies licensed by SBV, including domestic corporations, joint ventures and 100 percent foreign capital.

It can be affirmed that the consumer lending interest rate of commercial banks and finance companies is much lower than the 100 360 percent per year interest rate of black credit. But in order to get loans at an interest rate that does not exceed the legal ceiling interest rate from licensed organisations operating in accordance with the law, customers must also use the loan for the right purpose and for those Legal activities are not prohibited.

Deputy Governor of SBV said that black credit is closely associated with social evils such as gambling, lottery, gambling… Therefore, repelling and moving towards abolishing black credit needs consistency in the involvement of ministries, industry, locality. The system of credit institutions is always ready to source capital to meet the legitimate borrowing needs of people.


Category: Finance, Vietnam

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