HÀ NỘI — A consumer can have a maximum outstanding loan of VNĐ100 million (US$4,400) at financial firms, as per the State Bank of Việt Nam’s Decree No 43/2016. Experts said the cap will encourage financial firms to focus on lending small loans to promote consumption. Regarding interest rates, which remain a matter of concern in consumer lending, the decree said that financial firms will have to draw up regulations on interest rates, such as the highest and lowest rates for each product. Consumer lending interest rates have always been higher than banking rates as the risks are higher. Consumer lending currently accounts for around 10 per cent of the total outstanding loans in Việt Nam, as compared to 25 to 30 per cent in the region.

Source: Viet Nam News February 10, 2017 09:56 UTC