HCMC – The Vietnam Banks Association has proposed the State Bank of Vietnam (SBV) raise the consumer lending cap at finance companies from VND100 million to VND300-400 million.
The proposal was outlined in a recent petition aimed at easing regulatory bottlenecks for the consumer credit sector, reported the Vietnam News Agency.
The association said the current ceiling restricts finance companies to small, short-term loans, limiting their ability to develop larger or longer-term products. Aligning the cap with unsecured loan thresholds for agriculture, rural development, and anti-money laundering reporting—currently VND300-400 million—would expand lending, reduce costs, and allow lower interest rates and bad debt ratios.
The association also proposed doubling the cap on direct consumer loans without the amount being subject to a 30% cap to VND40 million. It believes that this change would help more people access legal credit and curb the growth of informal lending.
The 30% ratio is a limit on a finance company’s total portfolio, restricting how much of their overall debt can be directly disbursed to customers. However, there is an exemption for smaller loans. According to current regulations, direct-disbursed loans up to VND20 million were exempt from being counted toward this 30% ratio.
