Consumer lending less difficult

HD Saison's outstanding loans as of the end of the second quarter of 2024 increased by nearly 8.7% over the same period, reaching VND 16,939 billion. Of which, new customer growth reached nearly 20%.

According to HD Saison's leadership, in the first half of 2024, the company focused on lending for purchases, mainly motorbikes and electronics. Cash lending focuses on customers who have borrowed before and have a good repayment history. HD Saison aims for 25% credit growth this year with pre-tax profit of VND1,000 billion.

Some other financial companies have not announced their business results but also reported that business operations are less difficult than 1-2 years ago.

Fiingroup’s recent report on the consumer finance market stated that the market bottomed out in 2023 and is preparing for a new growth cycle. This year, some companies have set ambitious profit targets again, such as FE Credit, which expects pre-tax profit to reach VND1,200 billion.

Analysts at Vietcap Securities Company believe that lower interest rates and economic recovery will help improve customer demand and debt repayment capacity.

In addition, the State Bank's issuance of Circular 12/2024/TT-NHNN (Circular 12) amending and supplementing a number of provisions of Circular 39/2016 on lending activities is expected to create a breakthrough in the consumer lending segment. The highlight of this circular is the regulation that small loans, not exceeding 100 million VND, do not require a feasible capital use plan, in line with the characteristics of small loans...

Tien Phong Bank (TPBank) said it has adjusted current loan forms for consumer products to comply with Circular 12. Customers borrowing from VND100 million or less are not required to declare a plan for using the loan.

According to the bank representative, these changes will facilitate people's access to consumer loans, especially people in remote areas and low-income people, helping customers access small loans more easily, limiting black credit. "Consumer lending through digital channels has shown signs of good growth in recent months. With the "opening" of Circular 12, the bank expects the growth of outstanding consumer loans at the end of the year to be about 25%, of which outstanding loans for consumer lending products through digital channels alone will grow by over 35%, reaching more than VND 5,000 billion" - TPBank representative expressed expectations.

Regarding solutions to deal with the situation of "defaulting on debt", Home Credit Finance Company said that it has applied a strict appraisal process to ensure that customers have the ability to repay the loan. Accordingly, the company collects information from many different sources to make prudent lending decisions, avoiding bad debt.

Source: https://nld.com.vn/cho-vay-tieu-dung-bot-kho-196240812205315567.htm