Anticipating an increase in the loan ceiling.

The proposal to raise the ceiling for small loans to 400 million VND is being awaited by both citizens and banks. Besides increasing the limit, easing the procedural requirements could open up more opportunities to access capital.

The proposal to raise the ceiling for small loans to 400 million VND is receiving significant attention from individuals and businesses.

Many shortcomings

According to current regulations, unsecured loans for individuals and families to cover living expenses can be considered through a simplified procedure with a maximum limit of 100 million VND. However, in the context of continuously rising prices and business costs, this ceiling is gradually revealing many shortcomings.

In the Hai Phong - Quang Ninh region, credit volume has increased sharply recently. By the end of March 2026, the total outstanding loans in the entire region were estimated at over 756,000 billion VND. Loans specifically for living expenses amounted to approximately 205,099 billion VND, accounting for over 27% of the total outstanding loans. This indicates a very large demand for capital among the population, but also comes with many obstacles.

In reality, not only is the need for capital increasing, but the turnover rate of goods in small businesses is also faster, requiring flexible cash flow. When the loan limit is capped at 100 million VND, many businesses have to borrow multiple times, which is both time-consuming and reduces the efficiency of capital utilization.

Mr. Tran Van Nam, a self-employed businessman in Le Thanh Nghi ward, once borrowed 100 million VND to supplement his trading capital. However, this amount was only enough to cover short-term expenses. "A shipment now costs several hundred million VND; borrowing 100 million VND only covers a portion of the purchase, and the rest still needs to be raised from other sources. If prices fluctuate or sales slow, it's very difficult," Mr. Nam said.

Similarly, Mr. Bui Van Hau from Kien Thuy commune also believes that the current loan amount is no longer suitable. "Input costs are increasing rapidly; the cost of goods alone has far exceeded 100 million VND. Small loans now only provide temporary support," Mr. Hau shared.

Meanwhile, to borrow larger amounts, people have to turn to conventional credit packages with stricter requirements for collateral, documentation, and appraisal processes. According to Ms. Le Thu Hien, owner of a grocery store in Ninh Giang commune, this is a major obstacle. “If we borrow 100 million VND, it's not enough to buy inventory. But to borrow 300-400 million VND, we have to prepare very detailed documents… It's not easy for small shops like ours to meet the requirements,” Ms. Hien said.

Looking forward to the new regulations.

The State Bank of Vietnam is seeking feedback on the draft Circular amending and supplementing several articles of Circular 39/2016 on lending activities of credit institutions and branches of foreign banks to customers.

One notable point is the proposal to raise the ceiling for small loans to no more than 400 million VND for credit institutions (excluding people's credit funds); for people's credit funds, the ceiling is no more than 200 million VND. At the same time, the procedures are also being simplified: customers are no longer required to prepare a detailed capital utilization plan, only needing to provide basic information about the loan purpose and financial capacity.

If approved, the proposal to raise the ceiling on small loans is seen as facilitating a stronger flow of credit into the small business sector.

In the context of expanding retail credit, simplifying procedures is seen as a key factor in improving capital absorption capacity.

According to Mr. Nguyen Ngoc Anh, Director of BIDV Bac Hai Duong branch, raising the loan limit is appropriate given the current situation. “The previous limit of 100 million VND might have been suitable, but business costs are different now. Raising it to 400 million VND will make the loan more meaningful for people,” Mr. Ngoc Anh said.

According to Mr. Ngoc Anh, the bigger change lies in how customers are assessed, as banks can rely more on credit history and creditworthiness instead of requiring overly detailed plans. This is suitable for smaller customer groups, who are not familiar with complex paperwork procedures.

From the perspective of a joint-stock commercial bank, Ms. Pham Thi Van Anh, Director of Bac A Bank Hai Duong, believes that this proposal will help capital flow faster into the small business sector. However, banks also emphasize that easing conditions does not mean loosening control; the principle of safety must still be ensured.

From the borrower's perspective, the biggest expectation is to obtain a sufficiently large amount of capital for long-term planning rather than just short-term maneuvering. With a loan of 400 million VND, many businesses can proactively import goods on a larger scale, take advantage of favorable prices, and reduce intermediary costs.

More importantly, sufficient capital will help change business practices, from maintaining a minimal level to expanding operations. Combined with simpler procedures, access to capital at the right time will improve, enabling small businesses to enhance their competitiveness.

It is clear that the proposal to raise the ceiling for small loans to 400 million VND is not just a change in the amount, but also a necessary adjustment to ensure that capital flows closely match actual needs. With the limit raised and procedures redesigned to be more appropriate, credit can become a real leverage for the small business sector, which plays a crucial role in the vitality of the local economy.

HA KIEN

Source: https://baohaiphong.vn/ngong-nang-tran-khoan-vay-540887.html