Pilot peer-to-peer lending to manage loans over cyberspace

Accordingly, from July 1, peer-to-peer lending will be tested for 2 years, along with credit scoring and data sharing via open application programming interfaces. One of the fintech solutions approved for testing by the Government is peer-to-peer lending (P2P Lending). Peer-to-peer lending companies are only allowed to provide testing solutions when licensed by the State Bank.

Borrow capital from Lac Tanh People's Credit Fund.

In fact, lending via aap, online lending has appeared for more than 10 years, most popular during the Covid-19 pandemic because at that time traveling was difficult. Taking advantage of this weakness, many illegal aaps have sprung up on the internet with incredibly high interest rates. Borrowing 2 million VND within 5 days must pay an interest rate of 1 million VND. With the type of black credit lending and debt collection terrorism by combining images of relatives and posting them online, many people have suffered mental crisis. Recently, the Ministry of Public Security has taken action to destroy dozens of aaps operating black credit by lending online with a scale of thousands of billions of VND and thousands of victims, most of the aaps are led by Chinese people. In Binh Thuan, many people caught in the AAP debt trap have called for help, such as in a school in Bac Binh district, a teacher who borrowed money through AAP and did not pay his debt on time was forced to pay the debt by calling the school and relatives to pressure him. Not stopping there, AAP also had employees combine photos of the borrower with the school's leaders with negative content and posted them online, causing the school to suffer for a long time...

According to the pilot mechanism, P2P Lending pilot activities will be licensed for 2 years, but not applicable to foreign banks. Credit institutions and financial technology companies are allowed to participate in the pilot mechanism review if they meet the business and investment conditions as prescribed by law. The pilot results are the basis for management agencies to research, develop and perfect the legal framework related to this lending field.

According to a survey, Vietnam currently has about 100 companies operating in the field of peer-to-peer lending, many of which have foreign investment. The goal of this fintech services testing mechanism is to promote innovation and modernization of the banking sector and help people and businesses use transparent, effective financial services at low costs. In addition, the creation of a testing environment aims to evaluate costs, benefits and help limit risks for customers when using these solutions.

“Peer-to-peer lending is a form of direct connection between lenders and borrowers through an online platform, without the need for traditional financial intermediaries such as banks.”

Source: https://baobinhthuan.com.vn/thi-diem-cho-vay-ngang-hang-de-quan-ly-vay-qua-khong-gian-mang-130096.html