Since interest rates for consumer loans 3 times high bank loan interest rates?

Consumer lending activity is considered the driving force of the growth economy, increase the accessibility of financial services, especially for the clients under Bank lending standards. From then on, contribute to pushing back the "credit". However, many suggested that consumer loan interest rate of the SHIP BUILDING is currently at a high level. On the morning of 12/7, investments held talks about consumer financial market with the theme "financial-retail development opportunities promote consumption, serving the economic growth". Talks about consumer financial market with the theme "financial-retail development opportunities promote consumption, serving the economic growth. (Photo: Smart Structures).

Since interest rates for consumer loans 3 times high bank loan interest rates?
Mr. Nguyen Tu Anh-Deputy Director for monetary policy, together with economic development, the proportion of Vietnam's GDP in the total consumption is continuously rising. Specifically, the proportion of the GDP has increased consumption non-code from 52.5% in 2005 and peaked in the year 2009% 77.7. After that, plummeting to the bottom in 2012 as the economy fell into crisis. Soon after that, from 2013, this rate is constantly rising and reach 78.34% in 2016. Outstanding consumer credit accounted for 11.7% of the outstanding economy. In recent years, consumer credit had grown considerably. According to DR. Cấn Van-economic expert, the end of the year 2016, outstanding consumer credit is 646,000 billion (about 28 billion dollars), accounting for 11.7% of total outstanding of the economy.

Prediction of the Viet securities company limited, the scale of consumer finance market will reach the milestone of 1 million billion in 2019. However, with the continuous growth of 20%-30% per year starting in 2010, this figure can be achieved earlier than forecast. TS for that, said consumer credit growing too hot is not yet the norm when not understand nature. By the consumer finance market is still very large, when there is a new bridge appear. He also reviews, consumer credit is still much potential for development in the market of Vietnam with a population of older, per capita income is rapidly increasing, the rate of consumption in GDP. Moreover, the rate of access to financial services in Vietnam is still limited, 39% of adults have accounts in banks, only 1% of transactions made by credit card. In addition, the development of financial services will be a favorable condition to develop consumer credit.

Mr. Dang Thanh hung-represented FE Credit said, according to the report, 6/2017 of Stoxplus Corporation, consumer credit rate on Vietnam's GDP was 9.8%, still low compared with other countries such as Malaysia (14%), the UK (16%), Canada (23%). Since consumer lending interest rates 3 times higher bank loan interest rates? The role of consumer finance is undeniable. When the consumer finance market grows, more and more people interested in loan interest rate of the financial company (SHIP BUILDING). Many suggested that consumer loan interest rate of the SHIP BUILDING is currently at a high level. Consumer loan interest rates generally on the market today are about 3 times the interest rate for loans of the same term of the Bank.

Mr. Pham Xuan hoe Deputy Minister Bank strategy put forward four causes of consumer lending interest rates currently remain high. First, the object of lending the PETROLEUM FINANCIAL COMPANY is customer segmentation "below standard", does not meet all the conditions of the Bank's credit grade. Second, consumer loans typically these small loans, do not have the secured property, ... have a higher risk than the Bank should offset the risk of elements constitute higher interest rates.

Third, the cost of capital input of the SHIP BUILDING are always higher than those of the banks. SHIP BUILDING not directly financed from the population that mostly works with Charter capital plus revenue from bonds. According to the Institute's survey, the average cost of capital to occupied from 22% to 63%. Wednesday, the cost of operation on a loan at a high level. Due to the small-value loans, short term (from 6-18 months) should cost appraisal, records procedures, debt collection, manage loans, ... leading to the SHIP BUILDING forced application of high interest rates.


The fertile land of consumer finance loans are divided as to how?


The total scale of consumer financing in 2016 estimated 598,500 billion, representing approximately 9.8% of GDP. In it, the Credit Company is occupying FE the largest market with 48.4%; following that is the opponents Home Credit Saison, HD and Prudential. FE Credit accounted for the largest market share in the consumer finance market in Vietnam in 2016 (photo: FE Credit). According to reviews of Dragon Securities Corporation (Viet Capital), the consumer credit market is fairly attractive and with potential for high yields. Marginal interest rate income rate (NIM) and the average of the field estimated at about 20%, while the average of the NIM the banking industry collectively at 2.9%.

Outstanding consumer finance in Vietnam (source: LIMITED). Target audience of consumer finance is the people in working age, expected to reach 56.2 million in 2020. Consequently, consumer financial forecasts will happen because according to the BMI, from 2016-2019, personal income totaled 13.2% annual compounding growth. Retail banking and consumer finance operations in the very different market segment, although the confrontation is inevitable on credit according to the product object (cell phone air credit, credit vehicles).

According to estimates of Viet Capital, consumer finance in turnover estimated 2016 598,500 billion, representing approximately 9.8% of GDP. While in the countries in the region, this figure is higher than the basic score of 320. In the context of the many risks on the banking industry in particular as well as systematic risk, consumer financial assets accounted for 12.4% of total assets in 2016. Market structure, consumer finance is split into retail banks and financial companies only consumer financing. The Bank can establish a leasing company or a subsidiary that specializes in consumer finance. However, consumer financing have different business structure because of higher interest rates and higher risk significantly.

Because the impact of the network and efficient scale in loan distribution model, the FE Credit market leader with 1.4 billion credit and 48.4% of the market. The other opponent is Home Credit Saison and HD, Prudential's market share with 15.7%, 12.2% and 8.1%. In addition, there are a number of smaller rivals like Mirae Asset Finance, JACCS and Toyota finance. About segmentation by sector, the largest array of consumer finance loans is personal and consumer (42.5%), followed by household goods (28%) and transport (19.6%). About growth, loans to buy vehicles and housing repairs rose sharply for the year 2016 (42%) increase, while lending increased 68% trust.





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