The bank simplifies the procedures for consumer loans.

Besides incentives for production and business, consumer lending is also being promoted by banks.

The State Bank of Vietnam has recently issued Circular 12, which simplifies procedures for small loans under 100 million VND. This regulation also contributes to the implementation of the new Law on Credit Institutions, which came into effect at the beginning of July.

Needing to buy more household appliances, Ms. Dung (Ba Dinh District, Hanoi ) went to the bank to inquire about loan procedures. Unlike before, she will not have to provide additional paperwork regarding the loan plan. Instead, she only needs to declare her information and the purpose of the loan to the bank to be eligible for a loan.

Simplifying procedures for borrowers, the new regulations also allow credit institutions to use diverse sources of information, employing big data systems collected from national data systems or other legitimate sources to consider and decide on credit granting.

Mr. To Hoai Thanh, Deputy General Director of Vietnam Cooperative Bank (Co-opBank), stated: "We have issued regulations so that customers do not have to develop feasible and effective capital plans or prove their effectiveness; at the same time, they must have their own capital to participate in that loan plan."

"This change is in line with market needs. For small consumer loans, customers always want the fastest service, but banks still need to ensure they assess the customer's ability to repay. This also supports the digitalization of banking products and services by minimizing paperwork...", said Ms. Hoang Thi Mai Thao, Deputy General Director of Saigon - Hanoi Commercial Joint Stock Bank(SHB) .

According to data from the State Bank of Vietnam, consumer lending accounts for approximately 21% of the total outstanding credit in the entire economy , equivalent to about 3.2 trillion VND. Simplifying procedures for small loans also plays a significant role in combating illegal lending by improving people's access to capital.

According to VTV

Source: https://doanhnghiepvn.vn/kinh-te/ngan-hang-don-gian-thu-tuc-cho-cac-khoan-vay-tieu-dung/20240722112440357