Việt Nam News

Outstanding consumer loans capped at VNĐ100m per person

February 10, 2017 - 17:00

A consumer can have a maximum outstanding loan of VNĐ100 million (US$4,400) at financial firms, as per the State Bank of Việt Nam’s Decree No 43/2016.

A consumer can have a maximum outstanding loan of VNĐ100 million (US$4,400) at financial firms. — Photo vietnamnet.vn

Viet Nam News

HÀ NỘI — A consumer can have a maximum outstanding loan of VNĐ100 million (US$4,400) at financial firms, as per the State Bank of Việt Nam’s Decree No 43/2016.

This cap, however, will not apply to car loans, wherein the car is a mortgaged asset.

Experts said the cap will encourage financial firms to focus on lending small loans to promote consumption.

The decree, which comes into effect on March 15, has created the legal framework for growth in consumer lending, which is expected to see a boom in the next several years, driven by economic growth and a young population with high consumer needs.

Regarding interest rates, which remain a matter of concern in consumer lending, the decree said that financial firms will have to draw up regulations on interest rates, such as the highest and lowest rates for each product.

Consumer lending interest rates have always been higher than banking rates as the risks are higher.

Experts said the decree would improve market transparency, and sub-standard customers could get access to credit.

Consumer lending currently accounts for around 10 per cent of the total outstanding loans in Việt Nam, as compared to 25 to 30 per cent in the region. — VNS

Tags credit consumer lending decree 43

Year-end stimulus expected to boost economic growth

Economy

UK a niche market for Vietnamese speciality coffee

Economy

Calls for reforms to shorten VAT refund wait time

Economy

Fed’s foreseen rate cuts affect foreign exchange rate

Economy

Vietnamese Goods Week 2024 opens in Hà Nội

Economy

Caution arises as State divestment strategy potentially poses risks

More on this story

Economy

Life insurance firms bought most long-term Government bonds

Life insurance companies were the major investors in Government bonds in 2016.

Economy

Plan for hi-tech agricultural zone in Phú Yên approved

The Prime Minister approved the general plan for the development of a hi-tech agricultural zone in the southern province of Phú Yên by 2030.

Economy

Book on VN’s economic development launched in India

“Việt Nam: The Emerging Asian star from a war-stricken nation,” a book covering aspects of the Southeast Asian country’s economy, was launched at a ceremony in New Delhi, India, on Tuesday.

Economy

Đông Á Bank recoups $185m of bad debts

Đông Á Bank has delivered a steady performance under the State Bank of Việt Nam's special supervision, since August, recovering nearly VNĐ4.2 trillion (US$185 million) of its non-performing loans.

Economy

VN expects 10 per cent rise in leather, shoe exports

Việt Nam was named the nation facing the second-highest level of cyber security risk in Asia Pacific markets by a Microsoft Asia report yesterday.

Economy

VN convenience stores enjoy boom

Convenience stores and minimarts have become increasingly popular in the country, with more than one third of households shopping there regularly, according to some analysts’ estimates.

Economy

VN among the most vulnerable to cyber threats

Việt Nam was named the nation facing the second-highest level of cyber security risk in Asia Pacific markets by a Microsoft Asia report yesterday.

Economy

VN firms eye co-branding goal

Co-branding is now a growing international trend and offers Vietnamese businesses the easiest way to join the global market.

Economy

Đắk Lắk to shift coffee strategy

The Central Highlands province of Đắk Lắk plans to increase the proportion of processed coffee such as instant coffee and powdered coffee from less than 10 per cent to 15 per cent in total coffee output by 2020 and up to 30 per cent by 2030.