A brief overview of personal lending in Vietnam

The financial market is experiencing rapid development and transformation due to the implementation of new technologies. Lending to the population is growing, as is the choice of credit products. Today, there are two popular types of loans among the population: cash loans and consumer loans. Let’s look at their similarities and differences.

Consumer loan

A consumer loan is usually considered a loan for a specific purpose, i.e., targeted. The lender issues credit money for a pre-known and fixed purpose in the loan agreement, such as:

  • Purchase of furniture, appliances (loans at sales points)
  • Purchase of real estate or a car
  • Repair of an apartment, car
  • Payment for education
  • Refinancing loans from other banks, etc.

Usually, in this type of lending, the borrower does not receive money into their account; the lender transfers it directly to the seller. However, there are cases when the money is transferred to the borrower, but the lender requires supporting documents within a certain period from the moment of receiving the funds. In simpler terms, the lender lends you money for a specific purchase. To see the loans available to you and choose the one that suits you personally, you can visit the VayTienMat24 website.

Cash loan

A cash loan differs from a consumer loan in that it has no specific purpose for which the funds will be spent. This type of loan is always unsecured. An unsecured loan is a form of bank loan where you do not need collateral. Instead, the bank will rely on the borrower’s creditworthiness, income, and credit history. Factors that financial institutions and banks will evaluate after issuing unsecured loans include:

– The borrower’s reputation will be based on their position and position in the company. This information will be clarified in your income statement.

– The reputation of the department/organization where you work.

– Income. What is your main source of income? How much is it worth each month?

– The borrower’s credit history.

The lender transfers the borrowed funds directly to the borrower’s account, which the borrower uses at their discretion. Each lender has its own terms and restrictions on amounts and terms. On average, money is issued for 1-5 years. Amounts can reach 100 million dong, but it all depends on the borrower’s income level and credit history.

Among cash loans, a separate category can be distinguished – fast or online loans. Unlike a regular cash loan, this loan is issued without visiting the lender’s office and, on average, takes no more than half an hour. You can submit an application through the website or mobile application. You will need a passport and possibly a second document – depending on the lender’s requirements.

Where and how to apply for a cash loan?

If you urgently need a small amount of money, then the optimal solution would be to apply for an online loan. You should carefully study all the offers on the website https://vaytienmat24.com/.

Important! When choosing a loan, focus on the most comfortable payment, do not overestimate your strength. It is better, if possible, to repay the loan early in the future than to immediately take a large amount for a short period with a payment size of more than 50% of your income. In addition, lenders themselves calculate the debt burden ratio, and if it exceeds the norm, the application will be rejected.

Pay attention not only to the interest rate but also to the conditions under which it is available: term, amount, etc. Often, behind the minimum rate, there is a list of conditions and additional paid services that will negate all your benefits and significantly increase overpayment. Pay attention to the total cost of the loan; this indicator reflects the real overpayment on the loan.

You can find lenders providing fast cash loans through the internet using search engines. Just enter your search query into the search box. You can immediately specify the amount of the loan you need. The search engine will give you a large list of organizations that you need to check for the legality of their activities. Reputable lenders always have a license number and/or MST on their website.

A reputable lending institution is an extremely important factor for clients who need a financial loan with high security and stable interest rates. Each institution will provide different benefits and loan terms to clients in the market. Therefore, in order to ensure information security, along with transparent lending procedures and agreements, you need to look for truly reputable lending companies, companies or organizations for cooperation and support throughout the entire lending journey.

There are many important factors to decide and evaluate if this is truly a reputable lending institution. Below are some guidelines to help you evaluate the overall soundness of financial institutions:

  • They are always transparent and clear about interest rates and terms/procedures in loan agreements. Fees, including surcharges, are published in full, uniformly and publicly.
  • Long time on the market. Cooperation with many other relevant financial institutions also has a high reputation in this area.
  • They are multinational lending institutions or have many branches throughout the country.

There are countless different lending institutions on the market today. You can choose a reputable and suitable lending institution depending on the purpose of your loan or economic situation.

After choosing a lender, you will only have to fill out a loan application, attach a photo of your identity document and send it. As a rule, all lenders make the application process as simple and accessible as possible, but if you still encounter problems when filling out an application, then call the lender’s hotline.

Trends in the further development of lending to individuals

What’s next for personal lending in Vietnam?

Given the bumpy road ahead, the future of Vietnam’s consumer finance market remains promising due to significant changes in consumer consumption and borrowing habits. The combination of the country’s rapid economic recovery, rising per capita income, and exponential growth in the middle class eventually caused an increase in demand for credit and consumer finance. 

In addition, the fact that almost 69% of the Vietnamese population has no or insufficient access to banking services provides financial companies with ample opportunity to intervene and reap the benefits.


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