Banks simplify procedures for consumer loans

The State Bank has just issued Circular 12, aiming to simplify procedures for small loans, under 100 million VND. This regulation also contributes to the implementation of the new Law on Credit Institutions, which takes effect from the beginning of July.

In need of buying more household appliances, Ms. Dung (Ba Dinh, Hanoi ) went to the bank to learn about loan procedures. Unlike before, she will not have to do additional paperwork about the loan plan. Instead, she only needs to declare information and loan purpose to the bank to be able to borrow.

Simplifying procedures for borrowers, the new regulations also allow credit institutions to use a variety of information sources, using big data systems collected from national data systems or other legal sources to consider and decide on credit granting.

Mr. To Hoai Thanh - Deputy General Director of Vietnam Cooperative Bank Co-opBank said: "We have issued regulations so that customers do not have to build a feasible and effective capital plan and do not have to prove the effectiveness; at the same time, the capital is self-sufficient to participate in that loan plan".

"This change is in line with market demand. For small consumer loans, the customer service time is always expected to be the fastest, but the bank still has to ensure the assessment of the customer's ability to repay the debt. This also meets the process of digitizing banking products and services because it reduces the paperwork provided...", said Ms. Hoang Thi Mai Thao - Deputy General Director of Saigon - Hanoi Commercial Joint Stock BankSHB .

According to data from the State Bank, consumer lending accounts for about 21% of total outstanding credit in the entire economy , equivalent to about VND3.2 trillion. Simplifying procedures for small loans also plays an important role in pushing back black credit, by improving people's access to capital.

According to VTV