The financial company is being mistaken for a scam app.

At the seminar "Unlocking Purchasing Power, Stimulating Consumer Demand" organized by Thanh Nien Newspaper this morning (May 22), FE Credit financial company also stated that lending activities are very open and convenient, but are "stigmatized" due to the notoriety of fraudulent apps offering high-interest loans.

Customers can take out consumer loans with a 0% interest rate.

Speaking at the conference, Mr. Le Truong Hoang, Sales Director of FE Credit, said that although Vietnam's consumer finance market has developed considerably, enough for people to recognize its role in the economy, it still lags far behind neighboring countries like Thailand or Indonesia. Looking back at the early stages of this market, around 2006-2008, Vietnamese consumers had little understanding of consumer finance. When they needed money, they usually only had two options: borrowing from banks or resorting to informal lending such as high-interest loans, informal lending groups, or market installments. After the emergence of consumer finance companies, the market gradually changed. These companies helped people access more transparent and clear sources of loans. Currently, at retail chains like Dien May Xanh, The Gioi Dien Dong, and motorcycle dealerships such as Honda, Yamaha, and VinFast , there are financial companies present to support customers with installment loans when they are unable to pay upfront.

A representative from FE Credit stated that the capital needed for consumer loans is substantial and covers all aspects of daily life.

PHOTO: INDEPENDENT

To promote consumer trends, finance companies must coordinate closely with original equipment manufacturers (OEMs) and retailers, including major brands like Sony, Samsung, and LG, as well as retail chains like The Gioi Dien Dong (Mobile World) , to support customers. The goal is to subsidize the interest on loans for buyers. Therefore, when customers purchase products under the "green loan" program, they can buy them on installment with 0% interest. This interest is shared by the finance company, the manufacturer, and the retailer. Many people may not notice this option because they don't buy on installments, but in reality, the demand among young people today is very high. Not everyone has 20 million VND readily available to buy a new, trendy phone. Therefore, they choose installment payments so they can use the product first and then pay gradually according to their financial capabilities.

Financial companies are being cracked down on, but lending apps are freely promoting themselves.

However, according to Mr. Le Truong Son, the worrying aspect is that the fraudulent activities of online lending apps, involving "terrorist" debt collection tactics, have negatively impacted the consumer lending operations of transparently regulated financial companies. Currently, legitimate financial companies are very strictly regulated because they "have clear addresses and legal entities," while many illegal online lending apps are more difficult to control. When people search for keywords like "borrow money" on Google, many advertisements from lending apps of unknown origin appear, while legitimate financial companies struggle to compete in advertising. This is also the reason for many unfortunate incidents: Borrowers are drawn into illegal lending apps without understanding the terms, then face pressure to repay debts or incur huge costs. Meanwhile, legitimate financial companies face difficulties in finding customers.

According to Mr. Son, the current capital supply capacity of finance companies is enormous. A single institution alone can disburse tens of trillions of dong annually to meet the consumer needs of the people. The range of loan products is very diverse, from motorcycles and electric vehicles to agricultural machinery and even fertilizers. The biggest obstacle currently is that finance companies are only allowed to lend a maximum of 100 million dong for consumer purposes. "This limit has become quite low compared to actual demand because many products such as high-end motorcycles, high-end household appliances, or other assets for daily life already exceed this price. Therefore, we are proposing to raise the consumer loan limit to around 400 million dong to better meet market demand," Mr. Son stated.

Source: https://thanhnien.vn/cong-ty-tai-chinh-dang-bi-hieu-nham-voi-app-lua-dao-185260522144613498.htm