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Banks work to boost consumer credit at year-end
By Dung Nguyen
Monday,  Dec 21, 2020,08:03 (GMT+7)

Banks work to boost consumer credit at year-end

By Dung Nguyen

A teller holds a stack of Vietnamese banknotes. Local banks have now focused on attracting borrowers of consumer credit - PHOTO: THANH HOA

HCMC - Since Covid-19 has been brought under control and consumer demand at the end of the year has been rising, local banks have now focused on attracting borrowers of consumer credit, offering many preferential consumer loan packages.

Many banks, including Techcombank, HDBank, VPBank, TPBank, VIB and MBB, have been allowed by the central bank to extend credit room to support credit growth, according to a report of Vietcombank Securities Company.

VPBank has introduced a VND2-trillion preferential credit package to car buyers with a credit limit up to 85% of the value of each car. Car buyers can enjoy a fixed interest rate of 8.5% for an initial period of 24 months.

Meanwhile, SeABank has offered a lending program for those who intend to buy houses and land, repair their homes or buy cars with a fixed interest rate of 7.5% for the first 24 months.

Joining the chorus, Techcombank continued to introduce various preferential loan packages for home and car buyers with fixed interest rates of 6.99%-8.75% for two years.

The launch of these credit packages, coupled with refund and reward point programs, is aimed at stimulating consumption at the end of the year.

Personal loans are expected to grow strongly at the end of the year as the demand for consumption is rising.

In the third quarter of 2020, many banks saw a quarter-on-quarter increase in personal loans, with MB reporting a rise of 10.9% and VIB’s personal loans soaring by 16.7%.

The growth in personal loans will contribute to the increase in net profits and the net interest margin of banks, according to a recent report of FiinGroup, Vietnam’s leading integrated service provider of financial data, business information and industry research services.

VCBS also said that the individual client segment offered much potential for development.

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