Consumer loans - how people and financial institutions contribute to economic recovery

Economic turmoil: people spend cautiously, consumption is more subdued

The year 2025 will see many challenges for the Vietnamese economy: GDP growth in the first quarter reached only 4.2%, lower than expected. Weak purchasing power, businesses tightened spending, and people became more cautious in financial decisions. Prolonged inflation, high living costs, combined with work pressure and unstable income have caused large expenditures to be postponed.

VietCredit Finance Company promotes consumer lending

According to data from the General Statistics Office, the retail sales index of goods and consumer service revenue in the first quarter of 2025 increased by only 3.8% - the lowest increase in the past 5 years. Meanwhile, consumer credit - which is a flexible financial support tool for people - also decreased. The State Bank recorded that the growth rate of consumer credit in the first 6 months of the year was only about 3.5%, much lower than previous years.

People borrowing consumer loans at the right time will stimulate consumption, creating a ripple effect.

In a context of weak purchasing power, if people can access suitable consumer loans and plan to use them properly, consumer borrowing can become an economic driver.

According to World Bank research, household spending currently accounts for more than 68% of Vietnam’s GDP – a figure that shows the important role of personal consumption in national growth. Spending from loans not only helps borrowers improve their lives, but also creates consumer demand, helps businesses sell goods, increase production, create jobs, and contribute to GDP.

However, this role only comes into play if the loan is used responsibly: borrowers need to have basic financial knowledge, spend wisely, have a clear repayment plan and proactively increase their income. Borrowing correctly - spending correctly - paying on time is how individuals contribute to macroeconomic stability.

Consumer loans - how people and financial institutions contribute to economic recovery

Credit institutions proactively lend properly, maintaining economic rhythm

For credit institutions such as banks and finance companies, proactively expanding consumer credit at the right time is a direct contribution to economic recovery. By helping people overcome short-term financial difficulties and maintain basic spending capacity, these institutions are keeping the cash flow in society from being disrupted. However, credit expansion must also be accompanied by strict conditions: only lending to customers with real needs, with the ability to pay, and using a strict risk assessment and control system.

According to data from the National Financial Supervisory Commission, the bad debt ratio in consumer credit is on the rise, now reaching 4.1% - a level that needs to be warned. Therefore, it is important that credit institutions only lend to customers with real needs and the ability to repay, and need to apply an early warning system and post-loan monitoring to support customers.

Not only disbursing loans, lending organizations must also ensure support for customers to repay debts on time, control safe portfolios, thereby ensuring sustainable development for both borrowers and lending businesses. Consumer loans - A small but indispensable link in economic recovery When the economy needs to recover from the roots, from each individual consumer, the role of consumer loans becomes even more evident. This is a small link but helps activate larger value chains in the economy: from production, distribution to employment.

In fact, many financial institutions are taking steps to promote responsible consumer lending. Among them, VietCredit is one of the pioneers with regular programs to restructure products, expand the scope of services for low-income people and small and medium-sized enterprises.

At the same time, actively deploying online communication content to improve personal financial knowledge for the community in general and VietCredit customers in particular. In addition, this financial company is also promoting the application of technology to support borrowers to control loans, remind repayment schedules and receive timely advice.

However, to be effective, it requires effective coordination from both sides: credit institutions provide responsible financial services, and people need to have a consumer mindset and borrow money with a plan. Only when both sides understand their role in the big picture, can consumer loans truly become a true economic recovery lever.

Source: https://baodautu.vn/vay-tieu-dung--cach-nguoi-dan-va-to-chuc-tai-chinh-cung-gop-phan-phuc-hoi-kinh-te-d273396.html