Consumer lending is becoming less difficult.

HD Saison's outstanding loan balance at the end of Q2/2024 increased by nearly 8.7% compared to the same period last year, reaching VND 16,939 billion. Of this, the growth in new customers reached nearly 20%.

According to HD Saison's leadership, in the first half of 2024, the company focused on lending for purchases, mainly motorcycles and home appliances. Cash loans were concentrated on customers who had previously borrowed and had a good repayment history. HD Saison aims for a 25% credit growth this year with a pre-tax profit of VND 1,000 billion.

Some other financial companies have not yet announced their business results, but they have also reported that business operations have become less difficult than they were 1-2 years ago.

A recent report on the consumer finance market by Fiingroup suggests that the market bottomed out in 2023 and is preparing for a new growth cycle. This year, some companies have set ambitious profit targets again, such as FE Credit, which expects pre-tax profits to reach VND 1,200 billion.

Analysts at Vietcap Securities Company believe that lower interest rates and an economic recovery will help improve customer demand and debt repayment capacity.

Furthermore, the issuance of Circular 12/2024/TT-NHNN (Circular 12) by the State Bank of Vietnam, amending and supplementing some provisions of Circular 39/2016 on lending activities, is expected to create a breakthrough in the consumer lending segment. A highlight of this circular is the provision that small loans, not exceeding 100 million VND, do not require a feasible capital utilization plan, which is consistent with the characteristics of small loans...

TPBank (Tien Phong Bank) announced that it has adjusted its current loan application forms for consumer products to comply with Circular 12, meaning borrowers with loans of VND 100 million or less are no longer required to declare a plan for using the loan funds.

According to bank representatives, these changes will facilitate people's access to consumer loans, especially those in remote areas and low-income earners, helping customers access small loans more easily and reducing illegal lending. "Consumer lending through digital channels has shown good growth in recent months. With the 'opening up' of Circular 12, the bank expects consumer loan balances to grow by about 25% by the end of the year, with outstanding balances of consumer loans through digital channels alone growing by over 35%, reaching more than 5,000 billion VND," a TPBank representative stated.

Regarding solutions to address loan defaults, Home Credit Finance Company stated that it has implemented a rigorous assessment process to ensure customers have sufficient ability to repay their loans. Accordingly, the company collects information from various sources to make cautious lending decisions and avoid bad debts.

Source: https://nld.com.vn/cho-vay-tieu-dung-bot-kho-196240812205315567.htm