Banks 'loosen' consumer loan conditions of 100 million VND

The State Bank has just stipulated that consumer loans of no more than 100 million VND do not require a feasible capital use plan, which will boost credit growth from now until the end of the year as well as push back black credit.

Bank State issued Circular 12/2024 Amending and supplementing a number of provisions of Circular 39/2016 on lending activities. Circular 12/2024 stipulates that loans of credit institutions with small value, not exceeding 100 million VND, do not require a feasible capital use plan. Commercial banks will have measures to check and monitor the use of loan capital for the committed purpose and repayment of customers, ensuring the ability to recover principal and interest in full and on time as agreed.

Ms. Nguyen Linh Phuong - Deputy Director of the Monetary Policy Department, State Bank - said that the regulation of loans under 100 million VND does not require customers to have a feasible capital usage plan, customers only need to provide minimum information on legal capital usage and financial capacity before organizing. credit lending. Thereby, stimulating the development of consumer finance.

“These changes make it easier for customers to access small loans, reducing black credit on the market,” said Ms. Linh.

Consumer loans account for about 20% of the total outstanding debt of the whole industry, equivalent to 2.8 million billion VND.

Mr. Le Hoang Tung - Deputy General Director of Vietcombank - said that based on Circular 12, Vietcombank has issued an internal document to implement this regulation in the direction of simplifying the procedures for loans under 100 million VND. Customers are not required to prove that they have a feasible capital use plan, only need to provide minimal information on the legal purpose of capital use, financial capacity...

"These adjustments have a positive impact on banks' consumer lending, as well as being the basis for developing consumer credit products deployed on digital channels," said Mr. Tung.

Statistics of ABBANK show that as of June 30, the loan ratio is under 100 million VND accounting for about 18-19% of total outstanding loans at this bank.

According to statistics of According to the State Bank, consumer loans currently account for about 20% of the total outstanding loans of the entire industry, equivalent to VND2.8 trillion. 16 credit institutions (including banks and finance companies) with the largest outstanding consumer loans are deploying up to 30 consumer loan products.

It can be mentioned that the 5,000 billion VND consumer loan program of Agribank has disbursed loans to more than 811,000 customers, currently only more than 83,000 customers still have outstanding loans;

Consumer finance package of up to 20,000 billion VND of two financial companies HD Saison and FE Credit for workers to borrow interest rate Up to now, more than 5,300 billion VND has been disbursed.

In addition, there is a consumer loan program worth 20,000 billion VND of the Social Policy Bank.

Deputy Governor of the State Bank Dao Minh Tu said: “Some commercial banks such as Agribank and LPBank have promoted consumer lending in recent times. Even banks such as Vietcombank and VietinBank, which previously focused on the business lending segment, have now shifted to consumer lending.”

According to the Deputy Governor, 5-7 years ago, consumer loans for daily living, meeting the needs of medical treatment, weddings, paying tuition fees... accounted for a very small proportion in credit institutions, especially commercial banks. Currently, the mechanism and policies to encourage commercial banks to promote consumer loans are very open. A series of financial companies, including financial companies of commercial banks, have also been established and promote consumer loans.

"The State Bank has directed the banking system to promote consumer lending, at the same time implementing many solutions to rectify and tighten consumer lending activities, limit negative aspects at some financial companies such as excessively high interest rates, inappropriate debt collection activities...", Deputy Governor Tu said.

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