Thousands of billions of dong in consumer loans

(Baonghean.vn) - Along with the strong development of the economy, people's lives are increasingly improved, the need for spending to serve life is increasing. That is a favorable condition for banking activities in general, and the consumer lending sector in particular, to develop. Since the beginning of the year, thousands of billions of VND have been disbursed by banks in Nghe An for consumer loans.

Many customers participate in consumer loans and shopping.

Loans are an important source of finance that helps consumers cover their needs in life such as: buying housing, transportation, living amenities, studying, traveling, healthcare, etc.

Grasping the need to cover people's living expenses, banks have focused on promoting consumer loans to increase outstanding debt, especially in the context of the economy's weak capital absorption capacity as it is now.

Consumer loan stimulus packages have interest rates ranging from 6.99% to 11% depending on the short-term, medium-term or long-term loan period. Banks often offer preferential credit packages on interest rates for borrowers, such as coordinating with investors to build apartment buildings to support customers to borrow to stimulate increased borrowing capacity... while reducing procedures for customers, making loan applications simple and disbursing quickly.

Mr. Nguyen Hoang Phong, Hung Binh Ward (Vinh City) shared: "My family is preparing to marry a wife for my son, so we need money to cover the wedding and buy household items. After consulting a number of banks, I borrowed 500 million VND with an interest rate of 8.5%/year. I found it suitable and tried to pay the debt on time."

Since the beginning of 2016, banks in Nghe An have disbursed thousands of billions of VND to people for consumer loans and shopping. However, compared to the same period last year, outstanding loans have increased at an average rate. At HDbank, in 2016, the target for personal credit growth was 25%, but by the beginning of August, outstanding consumer loans reached 450 billion VND, an increase of about 5% compared to the beginning of the year. By the end of July 2016, outstanding consumer loans at VIB Vinh reached 426 billion VND, an increase of 96 billion VND compared to the beginning of the year. At Vietcombank, car loans are up to 70% of the car's value, payable within 5 years; home loans are up to 15 years. Thanks to preferential policies for customers, by the end of July 2016, total outstanding personal consumer loans reached 690 billion VND, an increase of nearly 175 billion VND compared to the beginning of the year.

Despite many incentives, people are still hesitant to borrow for consumption and shopping due to fear of their ability to repay the debt.

However, despite efforts to offer many incentives to customers, according to some banks, consumer credit growth is very difficult because customers' spending needs are still cautious in the context of a difficult market, so many individuals are not interested in borrowing money to serve their shopping needs and then face pressure to repay bank loans.

Quynh Lan