HD SAISON, a subsidiary of HDBank, has earmarked a loan package of VND10 trillion (US$429.78 million) at half the market interest rate for workers at industrial parks across the country.

Through this, it hopes to help the government stabilise the economy and ensure social security, and protect workers from loan sharks.

Workers expressed happiness on hearing about the package.

HD SAISON will lend from this package until the end of 2023 at an interest rate of 20 per cent a year compared to the normal rate of 40-50 per cent.

Borrowers can roll over their loans for several years.

For the sake of workers

An HD SAISON spokesperson said the company was honoured to be chosen by the Government and the State Bank of Vietnam as one of two consumer finance companies to deploy VND10 trillion preferential packages for workers, helping improve the quality of their life and businesses stabilise production, and support the recovery of the economy post-Covid.

To ensure loans are provided to the right people and safely, a survey team consisting of representatives of the Vietnam General Confederation of Labour, the central bank and the two financial companies will conduct a fact-finding trip to some grassroots trade unions and industrial parks to understand the demand and tweak the programme.

The SBV has directed its offices around the country to coordinate with the grassroots trade unions and the two finance companies to facilitate the lending.

HD SAISON has for long been known as the first consumer finance company to provide loans for buying motorbikes, cars, light trucks, construction materials, musical instruments, cosmetics, and Vietjet air tickets besides for travel, wedding and education.

With its unique feature of providing loans ranging from a few million dong to several tens of millions of dong, HD SAISON has always been trusted by workers, farmers and ordinary labourers when they face financial difficulties.

HD SAISON's ‘strange taste’

For many years HD SAISON has been the consumer finance company with the largest network in Viet Nam.

Despite being affected by the pandemic, its business remained stable in 2021, with operating income and profit after tax increasing by 4.6 per cent and 0.46 per cent.

Its return on equity was 23.1 per cent last year, quite high for the consumer finance industry.

To achieve these results, besides adopting flexible business strategies, HD SAISON is also consistent with them over the long-term.

It has a diverse credit portfolio, including loans to buy motorbikes and household appliances, cash loans, international credit card issuance, and so on.

Its strategy is risk diversification among customers, focusing on loan growth by taking on more new customers, and increasing the quantum of credit for loyal customers with a good payment history.

Maintaining a large customer base and adjusting average loan value for each customer group also helps it mitigate risk.

Besides, HD SAISON focuses on low-value, short-term loans of below VND30 million for a term of less than one year, helping control credit risk and minimise concentration risk for its loan portfolio.

HD SAISON became a member of the Vietnam Banks Association in March 2021, which enables it to participate in creating mechanisms, policies and the legal framework for financial companies and get information quickly to proactively make business plans and avoid legal obstacles and difficulties, thus stabilising its long-term development orientation.

With usury remaining rampant, preferential lending packages by financial companies such as HD SAISON are benefiting workers and employees.

This activity is also in line with Prime Minister Pham Minh Chinh's exhortation to meet the demands of workers and reduce their financial burden. — VNS