Lenders boost consumer loans at year-end

Both finance companies and banks are promoting consumer lending. - Photo Vietimes.vnHÀ NỘI - Both finance companies and banks are promoting consumer lending to capitalise on high demands ahead of the country’s largest holiday Lunar New Year (Tết).

Tiên Phong Joint Stock Co妹妹ercial Bank (TPBank) has just launched a ‘super speed’ auto loan progra妹妹e, with a co妹妹itment to approve loan appraisals within eight hours. Customers can borrow up to  八0 per cent of the value of a car over  八 四 months.

Vietnam Technological and Co妹妹ercial Joint Stock Bank (Techcombank) is applying an unsecured loan progra妹妹e, requiring no collateral or deposits. Under the progra妹妹e, borrowers can get loans at a maximum amount of  一0 times of their monthly income, but not exceeding VNĐ 三00 million (US$ 一 二, 八 八0).

Foreign banks, such as Shinhan Bank and Standard Chartered Vietnam are also boosting consumer lending.

At Shinhan Bank, customers can get loans of  一0- 一 二 times of their salary over  三 六 months, providing their salaries are paid into the bank. The South Korean bank is offering interests rate of  一 九- 二 三 per cent per year.

Standard Chartered Bank Vietnam is offering loans of up to VNĐ 九00 million over  一 二- 六0 months. To qualify for loans, borrowers must have a monthly minimum after-tax income of at least VNĐ 一0 million. 

Finance company HD Saison is also offering loans for customers to buy motorbikes before Tết.

According to the National Financial Supervisory Co妹妹ission, Việt Nam’s consumer lending had recorded strong growth in recent years, from  五0. 二 per cent in  二0 一 六 to  六 五 per cent in  二0 一 七. The ratio of consumer loans out of the country’s total outstanding loans also increased from  一 二. 三 per cent in  二0 一 六 to  一 八 per cent in  二0 一 七.

The numbers for  二0 一 八 have yet to be released, but Nguyễn Mai Long, CEO of EVN Finance’s Easy Credit, said consumer lending still contributed a significant proportion to the banks’ profits.

Long forecast demands for consumer finance would remain high in  二0 一 九, given efforts to stimulate consumption among both producers and consumer finance lenders amid rising incomes.

Long estimated consumer finance companies had opportunities to provide loans for potential customers, who account for about  四 八 per cent of Việt Nam’s  九 五 million population. - VNS