Forwarding consumer lending is one of measures to limit illegal money lending.
Forwarding consumer lending is one of measures to limit illegal money lending.
Impulsing lending
Till end 2018, Khanh Hoa Province has 38 branches of credit institutions and 4 People’s credit funds with 165 banking offices and 330 ATMs. The banking network has covered all cities and districts in the province. Agribank even has transaction spots in communes and opened mobile transaction by car in Cam Lam District to facilitate people in remote areas to access credit and banking services. According to Nguyen Xuan Huy, director of Agribank Khanh Hoa, after several months, people now have known about the mobile transaction spot and done more transactions. The mobile transaction spot partly has reduced illegal money lending in rural areas.
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Branches of credit institutions in the province have launched a lot of consumer lending for demands like house purchase, land purchase, house repair, car purchase, household equipment, etc. with preferential and flexible interest rates…
Most of the borrowers are in urban areas as they have stable salary. Only 4,145 borrowers are in rural areas, making up only 5.58% in tho total.
Till December 31, 2018, consumer credit in rural areas reached VND1,171 billion, making up 5.79% of the total credit balance in the province and increasing by 79.88% over that in 2017. Average consumer credit balance in rural areas was VND283 million/borrower.
Many measures to limit illegal money borrowing
According to Nguyen Hoai Chieu, director of the State Bank – Khanh Hoa Branch, in the time to come, the banking need carry out more measures to limit illegal money lending. The banking will expand credit in rural areas as well as forward lending through groups and under the support of local authorities. Besides, policies on preferential interest rates associated with customer service will be developed to raise credit and have new customers. Credit products also need to be diversified, time for lending procedures need to be reduced…Related agencies need check and punish illegal money lenders and propaganize people in rural areas about danges of illegal money borrowing. Commercial banks need intensify marketing about consumer lending products for local people.
Till December 31, 2018, credit balance of consumer loans in Khanh Hoa Province was VND20,218 billion, making up 27.24% of the total credit balance and increasing by 27.69% over that in 2017. Consumer loans for purchasing, hiring, building and reparing house made up 63.50% of the total consumer loans.
Nam Du
Translated by T.T
