According to the State Bank, Circular 06/2023/TT-NHNN (Circular 06) effective from September 1, 2023 stipulates the maximum loan limit for individual customers via electronic means is 100 million VND at a credit institution.
This regulation contributes to perfecting the legal framework, and is the basis for banks to widely deploy and apply electronic means in the lending process.
The State Bank said that, basically, credit institutions have applied electronic means to the lending process, focusing on developing and perfecting technological solutions to support or replace manual operations.
Military Commercial Joint Stock Bank (MB) has deployed lending activities on many different transaction channels (such as App MBBank, Biz MBBank... or linked with third-party systems such as Mcredit). At the same time, it has applied electronic customer identification and authentication technology (eKYC), optical character recognition (OCR)... in lending.
Tien Phong Commercial Joint Stock Bank (TPBank) also applies digital transformation technologies in lending to customers (especially customers using credit cards and unsecured consumer loans) without documents, ensuring safety and low costs; performing credit appraisal and approval on the internal credit approval and file circulation system (instead of the previous hard copy files), valuation, approval and management of collateral assets after lending are performed on the collateral management system, moving towards mass application of online products more widely, both on ebank and LiveBank channels.
For example, Vietnam International Bank (VIB) has directly connected with the Vietnam National Credit Information Center (CIC) to optimize the time and cost of CIC lookup, apply the appraisal, approval and disbursement process via an electronic platform (ACL project) and use electronic signatures to reduce paper document procedures.
At Vietnam Prosperity Joint Stock Commercial Bank (VPBank), this bank has deployed overdraft loan services for online corporate customers, online limit disbursement; an application that allows individual customers to borrow to buy cars right at the car dealership and know the approval results after 5 minutes; an application that allows sales staff to meet customers directly, enter customer information/identify customers and submit documents online; a technology application that allows customers to perform KYC themselves through facial recognition on ID cards/CCCDs (eKYC and OCR applications); setting up document approval processing principles based on issued product policies and appraisal policies.
According to Mr. Nguyen Xuan Bac - Deputy Director of the Department of Credit for Economic Sectors, State Bank of Vietnam - with electronic lending, borrowers do not need to go to the bank, the loan process is faster and more convenient.
Mr. Hoang Ngoc Phuong - Deputy General Director of VietinBank - said that the implementation of lending to individual customers by electronic means has become popular. However, for corporate customers, although it has been implemented by the bank, there are still many limitations.
To increase the attractiveness of the product, Mr. Phuong proposed that instead of applying the current maximum limit of 100 million VND, the State Bank should consider raising the maximum lending limit by electronic means if the loan is secured by the customer's own savings deposit.
“If the above limit regulations are removed, transactions will become easier and more convenient, shortening transaction time for customers,” said the Deputy General Director of VietinBank.
Regarding the proposal to increase the lending limit under this method, Ms. Bui Thuy Hang - Deputy Director of the Monetary Policy Department, SBV - said that Circular 06 will only come into effect from September 1, 2023, and the SBV will continue to monitor and synthesize opinions on this lending method.
“If there are any difficulties or problems arising from practice, we will study, consider and make specific proposals,” said Ms. Hang.
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