The central bank also issued a decision to guide P2P lending companies to connect, report and check credit information at the Vietnam National Credit Information Centre. Photo vneconomy.vn

HÀ NỘI — Individual customers can borrow a maximum of VNĐ100 million from a peer-to-peer (P2P) lending company and VNĐ400 million at all P2P lending companies, according to new regulations issued by the State Bank of Vietnam (SBV).

The loan limits were under decisions issued by the SBV to create conditions for testing P2P lending in Việt Nam.

According to the SBV, P2P lending is under a pilot programme so that the limit regulations aim to ensure a common consensus on risk management principles, consistent with the nature of the pilot. This limit also aims to restrict financial losses for both lenders and borrowers, contributing to the stability of the financial system.

In addition, the SBV also issued a decision to guide P2P lending companies to connect, report and check credit information at the Vietnam National Credit Information Centre (CIC). The participation in the national credit information system will help P2P lending companies have a basis to manage customer debt and at the same time have more information about borrowers, contributing to improving loan quality.

P2P 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.

The SBV said it is ready to accompany fintech organisations to promote innovation and financial inclusion in the banking sector in Việt Nam, while still ensuring risk control.

In early May, the Government issued Decree 94 on a controlled testing mechanism (sandbox) and financial technology (fintech) solutions in the banking sector.

From July 1, P2P lending activities will be tested under a pilot programme for two years, along with credit scoring and data sharing via open application programming interfaces.

P2P lending testing activities will be licensed for two years, but not applicable to foreign banks.

Việt Nam currently has about 100 companies operating in the P2P lending, many of which are foreign-invested companies. — BIZHUB/VNS