Wednesday, 18:10 16/08/2017
Customer credit development: Multi-benefit
With the rapid development of consumer credit services, the majority of citizens with in low and middle income range can now easily access to capital used to open a restaurant, grocery, online shopping, or saving in emergency situation.
Solution for low financial demands
Mrs. Thu Ha in Kim Nguu street (Hai Ba Trung District) said, with an income of 4 million VND per month, she cannot pursue her dream of opening a business. However, with a lending amount of 50 million VND from the consumer credit service, she can open an eatery right at home. Not only Mrs. Ha, but also people with income level below average have access to loan to solve their urgent needs and pursue business idea.
In every electronic retailer such as The Gioi Di Dong, FPT Shop, Nguyen Kim, staffs of financial companies such as ACS, FE Credit, Home Credit positioned here are willing to offer a loan with simple requirements and without mortgage.
In some cases, customers are given loan with electronic bills in lending programs, for which they are not required to submit proof of income. Accordingly, the person in subject only need to have his name on the bill to be lent an amount of up to 50 million VND without any complicated requirements. Specifically, for an electronic bill from 300,000 to below 500,000 VND, the lending amount is 8-14 million VND with an interest rate of 2.95% per month.
From 550,000 to below 1 million VND, the lending amount will be from 15-30 million VND with an interest rate of 1.66% per month. Some customer only needs driver license, or family record book to be given loan to buy smartphone up to 10 million VND with installment plan in 12 months.
Overcome interest rate barrier
At the end of 2016, consumer credit debt is 646 trillion VND (equivalent to 28 billion VND), contributing 11.7% total debt of the economy and 10% GDP. It is expected that the scale of consumer credit will reach 44 billion USD by 2019, with an average increase of 29% per year.
According to economic experts, consumer credit will narrow unofficial lending activities, in turn helping citizens with low financial demand to avoid loan sharks. Consumer credit is also an important financial instrument to simulate consumption, for which increases productivity and create employment for the economic development.
As of present, there are 15 financial companies given operation license by the State Bank of Vietnam (SBV). It is expected that the number will continue to raise in the coming time. Among these companies, 4 companies currently hold 80% market shares in consumer credit services: FE Credit, Home Credit, HD Saison and Prudential Finance. After the circular 43/2016 prescribing consumer lending by financial companies issued by the SBV comes into effect in March 15, accessing these services is more and more easy for customer with clarity on requirements, interest rate and payment reminder.
Dr. Can Van Luc said, interest rate of customer credit in Vietnam is 20-40% per year. For many case, customer can lend with interest rate around 20% with good credit record. However, Mr. Luc emphasized, the mentioned interest rate is instable and compromised between two parties, which is based on the credit record of each customer and the risk of each loan. Therefore, before applying for any loan, customers must clearly understand the nature of the service and their financial capabilities to repay the debt. Moreover, customers also need to read carefully the contract and only sign when they fully understand their responsibilities. It is the best way to repay the debt in a timely manner and avoid any unnecessary complaints.
Mrs. Thu Ha in Kim Nguu street (Hai Ba Trung District) said, with an income of 4 million VND per month, she cannot pursue her dream of opening a business. However, with a lending amount of 50 million VND from the consumer credit service, she can open an eatery right at home. Not only Mrs. Ha, but also people with income level below average have access to loan to solve their urgent needs and pursue business idea.
In every electronic retailer such as The Gioi Di Dong, FPT Shop, Nguyen Kim, staffs of financial companies such as ACS, FE Credit, Home Credit positioned here are willing to offer a loan with simple requirements and without mortgage.
Advising customers on installment payment plan at Dien May Xanh Retailer.
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From 550,000 to below 1 million VND, the lending amount will be from 15-30 million VND with an interest rate of 1.66% per month. Some customer only needs driver license, or family record book to be given loan to buy smartphone up to 10 million VND with installment plan in 12 months.
Overcome interest rate barrier
At the end of 2016, consumer credit debt is 646 trillion VND (equivalent to 28 billion VND), contributing 11.7% total debt of the economy and 10% GDP. It is expected that the scale of consumer credit will reach 44 billion USD by 2019, with an average increase of 29% per year.
According to economic experts, consumer credit will narrow unofficial lending activities, in turn helping citizens with low financial demand to avoid loan sharks. Consumer credit is also an important financial instrument to simulate consumption, for which increases productivity and create employment for the economic development.
As of present, there are 15 financial companies given operation license by the State Bank of Vietnam (SBV). It is expected that the number will continue to raise in the coming time. Among these companies, 4 companies currently hold 80% market shares in consumer credit services: FE Credit, Home Credit, HD Saison and Prudential Finance. After the circular 43/2016 prescribing consumer lending by financial companies issued by the SBV comes into effect in March 15, accessing these services is more and more easy for customer with clarity on requirements, interest rate and payment reminder.
Dr. Can Van Luc said, interest rate of customer credit in Vietnam is 20-40% per year. For many case, customer can lend with interest rate around 20% with good credit record. However, Mr. Luc emphasized, the mentioned interest rate is instable and compromised between two parties, which is based on the credit record of each customer and the risk of each loan. Therefore, before applying for any loan, customers must clearly understand the nature of the service and their financial capabilities to repay the debt. Moreover, customers also need to read carefully the contract and only sign when they fully understand their responsibilities. It is the best way to repay the debt in a timely manner and avoid any unnecessary complaints.
