Consumer loans - steel blocks for black credit17/04/2019
1. 1001 reasons for black credit borrowing
The reason why this type of lending is strongly developed is because they target people in rural areas or workers - who occupy a large number in the community but lack of financial knowledge, slow to grasp all banking services. For these subjects, bank lending is a luxury concept, similar to envisioning huge loans and business purposes. Therefore, when there is a demand for small amount of money such as family use, paying tuition fee, paying medical care while they can not self finance or borrow from friends and relatives, the final destination is only borrowing from black credit market. In addition, it also needs to be taken in the account the fast response time and simple procedural factors that these credit institutions often obtain in a very fast processes, almost immediately disburse based on two requirements such as national ID to determine the address of "debt collection" and the property to evaluate pay back ability. The property evaluation is usually under value than its actual value and results in disadvantages for customers.
Besides, because of not mastering financial knowledge, borrowers cannot imagine the high interest rate that they have to pay, leading to the matrix of "easy to borrow but difficult to pay back" of the black credit institutions.
2. Consumer loans- Steel blocks for black credit
Where there is the demand, there is the supply which including black credit. Therefore, the most effective way to reduce black credit is to relieve the thirst of capital of the majority of people and the development of consumer lending which is deployed by banks or financial institutions with lending licenses is the main targets of this goal. In order to meet the demand from the market, in addition to loan product for businesses, many banks have implemented small amount loan products for consumption purposes. For example, Sacombank is deploying 14 types of consumer loans with or without asset security to meet the diverse needs of customers.
Specifically, with collateral loan products, Sacombank is deploying other products to meet the diverse needs with loans amount up to 100% of the demand value, without limit the maximum amount: home loans, study loans, car loans, consumer loans (building / repairing houses, medical examination and treatment, shopping for household items ...)
With a loan without collateral, Sacombank is also deploying products to meet the demand for capital source for consumption purposes with a loan amount of up to VND 500 million such as quick loans within 4 hours product, personal loan product for State employees, employees have income from retired salary, Motorbike loan (up to 90% of vehicle value), consumer overdraft...
Although meeting the different loan purposes, the common point of these lending types is that interest rates and asset valuation always follow the legal standards, ensuring the interests of borrowers, the time of payment depends on different purposes and possibly up to 25 years which could help to reduce debt repayment pressure. Besides, like many other banks, Sacombank is applying modern techniques to reduce lending time and promote universal financial - banking knowledge to the community. Typically, the bank is implementing the credit creation, approval and management system (LOS). LOS allows Sacombank to automate documenting, reducing paper work, automatically input data and reuse data, shorten processing and approving time.
At the same time, Sacombank also promotes better communication to the community by professional staff, 24/7 customer care through hotline 1900 5555 88, email firstname.lastname@example.org or Fanpage Sacombank. Now, when there is a demand for loans, customers just need to contact any transaction point in the network of 566 transaction points of Sacombank nationwide or contact hotline, email, fanpage to be consulted by the consultant for appropriate loan packages, appraisal of documents and procedures.
The development of consumer loans through banks or licensed credit institutions will be a "steel blocks" to help repel black credit, providing people with healthy financial choices. This is also a leverage to help Vietnam catch up with developed countries like the US and South Korea in reducing black credit, reducing social evils, relieving capital thirst, thereby increasing purchasing power, creating market for consumer goods, boost production and stimulate economic development.