Expand consumer lending

Safe access to capital

Consumer finance is a small-scale capital channel, but it has increasingly demonstrated its role and made significant contributions in filling gaps in the market, diversifying financial services and widely meeting people's needs.

VietinBank Tuyen Quang deploys many consumer loan products to help individual customers access capital safely.

According to economic experts, when commercial banks promote consumer lending, it will stimulate production and be an important driving force for current economic growth. In particular, in the context of domestic production in general and in the province in particular beginning to recover, disbursing capital for consumer loans will not only help banks increase credit growth but also stimulate production development, contributing to economic growth. Moreover, expanding consumer credit will limit and repel "black credit".

On the other hand, the low interest rate level helps people access credit capital safely. According to the report of the State Bank of Tuyen Quang province, by the end of the first quarter of 2024, the short-term lending interest rate for priority subjects was 4.0%/year. The short-term lending interest rate for production and business was only 6.3% - 11%/year. The medium and long-term lending interest rate for production and business was only 9.0% - 12%/year. Compared to the beginning of 2024, the lending interest rate decreased by 0.5 - 0.7%/year.

Diversified products and services

With a flexible and sensitive business strategy, always focusing on customers, BIDV Tuyen Quang branch is currently promoting the development of products and services such as loans for buying land, houses, cars, building and repairing houses, buying furniture, business, consumption... The loan programs for individual customers have competitive interest rates compared to other banks from 0.5% - 1%/year.

Individual customers transact at BIDV Tuyen Quang counter.

As a small bank branch, newly operating in the province, HDBank Tuyen Quang has determined to focus on developing according to the retail banking model in urban and rural markets. Currently, HDBank is promoting lending products for rural agricultural development, lending for production and business, lending for real estate purchase, consumer lending with interest rates from only 5%/year, real estate loan ratio up to 70% of asset value, loan term up to 35 years...

Agribank province focuses on providing consumer credit products and services to the people, in which the credit structure of Agribank, consumer loans account for more than 30% of outstanding loans to individual customers. The branch targets cadres, civil servants, public employees, people receiving state salaries, and individual customers borrowing consumer loans to serve their living needs in urban and rural areas.

Instead of chasing after businesses with loan packages of tens of billions of VND, many banks are targeting individual customers with preferential interest rates, even consumer loans without collateral or guarantees, based only on monthly income. In addition, commercial banks are also more open to overdraft products via cards. Many commercial banks offer loans of up to 100 million VND for unsecured account overdrafts and 300 million VND for secured account overdrafts, even up to 500 million VND or higher for VIP customers.

At the end of the first quarter, the total outstanding debt in the province reached VND 29,844 billion, an increase of VND 3,148 billion compared to the same period in 2023. Of which, outstanding commercial credit reached VND 25,552 billion, the rest was outstanding policy credit. To promote production, business and consumption development in the province, the State Bank of the province has directed credit institutions to expand and diversify banking products and services, provide loans at reasonable interest rates, and simplify lending procedures to create favorable conditions for people to access credit through official channels, contributing to pushing back "black credit" in the area.

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