Removing barriers to consumer loans remains one of the most effective methods to combat loan sharks, heard participants at a seminar in Hà Nội on Tuesday.
Commercial banks are trying to boost individual consumer loans, especially to home and car buyers, since credit growth had slowed due to low capital demand from businesses.
Will consumer loans remain a money-spinner for banks post-COVID-19? This was a question recently posed by market observers after witnessing the pandemic’s big economic impact on individuals and households, dragging down demand for personal loans.
The competition to gain a larger share in the consumer finance market is heating up as rising capital demand before Lunar New Year is an opportunity for both banks and finance companies to boost the business segment.
With lending to businesses facing many hurdles, banks and finance
companies are focusing on consumer loans, or credit provided to retail
borrowers to buy items like vehicles and home appliances without
collateral.
The State Bank of Viet Nam (SBV) has warned commercial banks to closely
monitor and inspect consumer loans as many lenders have loosened their
lending conditions, causing concerns about rising bad debt.
The State Bank of Viet Nam this week instructed its municipal and
provincial branches nationwide to closely monitor and inspect consumer
loans from commercial banks.