Periodically reassess the loan every month, classify the debt in accordance with Circular No. 02/2013/TT-NHNN dated January 21, 2013 of the Governor of the State Bank, 65 NHNT-PC on promulgating regulations on debt collection by means of lawsuits in the Vietcombank system). After urging customers to repay the debt, adjusting the debt repayment period, extending the debt for customers but the customer still cannot repay the debt, the bank takes the following measures:
- Handling of secured assets
Send a notice of handling secured assets (property auction) to the customer and the guarantor, encouraging the customer to sell the assets themselves to pay the debt. After the time limit stated in the above notice, if the customer still cannot sell the assets, the Bank can proceed in one of the following ways:
+ Receive collateral to offset debt if the collateral can be used according to Vietcombank's business license, specifically: Real estate used is housing, assets such as cars, etc.
+ Discount for direct sale, further auction
• Hire a debt collection company
• Carry out debt sales in accordance with current regulations of Vietcombank and the State Bank on debt purchase and sale.
• Use of risk reserves
Step 6: Liquidate credit contract
When the customer pays off the debt, the Bank will compare and check the amount of principal, interest, fees... to settle the loan, liquidate the credit contract and release the loan security contracts in accordance with regulations.
In addition, for each specific lending case, Vietnam Joint Stock Commercial Bank for Foreign Trade has also issued specific guidelines for each product.
However, there are still problems with coordination between departments in the credit granting process, with responsibilities not clearly defined in some stages (especially between Customer Relations Officers and Appraisal Officers), or the division is not appropriate, for example, credit appraisal officers both appraise credit applications and appraise
collateral, which can lead to an unbiased appraisal to increase the amount of credit granted, causing risks for the bank. In addition, each transaction office currently only arranges 1 customer officer and 1 appraisal officer, so the strong development of personal customer credit as it is now will put great pressure on credit officers, most transaction office leaders do not have much experience in credit appraisal, so it can easily lead to risks for the bank.
2.2.2 Personal credit products at Vietcombank Bac Ninh
For the KHCN loan products at Vietcombank Bac Ninh, they can be divided into 02 groups: (i) consumer loan products and (ii) loan products for production and business. Including standard products and non-standard products. Standard products are products that are specifically built, customers borrowing capital must fully meet the criteria specified in the product content, with a specific product name, for example: loans for land purchase, home repair; loans for car purchase; loans for project housing; loans for business fortune; consumer loans without collateral... Non-standard loan products are outside of standard products, meaning they do not meet even one of the conditions to be included in the standard product, or loan products that have not been built by Vietcombank.
Consumer loan products
Loan products for production business | |
+ Loan products for land purchase and home repair +Car loan products of KHCN + Loan products for buying houses in science and technology projects + Unsecured consumer loan products for SMEs +Consumer loan products with collateral for SMEs +Consumer loan products for VCB staff + GTCG mortgage loan products at counter | +Prosperity business loan products for KHCN + Medium and long-term business support loan products for science and technology |
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a. Consumer loan product group
Loan products for land purchase, construction, and home repair for KHCN
- Applicable subjects and loan purposes: Individuals who meet legal conditions and need to borrow capital to buy land/compensate for land purchase, or build or repair a house/compensate for building or repair a house.
- Income requirement: Minimum income of 5 million VND/person, in case of 2 spouses borrowing together, the minimum income of both is 10 million VND.
- Collateral conditions: The collateral must belong to the customer himself or the borrower's parents/children, the normal loan amount is up to 70% of the market valuation value.
- Other conditions: (i) Debt repayment ratio (customer's monthly debt repayment amount/customer's average monthly income) maximum 60% (ii) Maximum loan term 15 years + customer's age at the time of loan consideration is not more than 75 years old (iii) Customer's credit rating is A or higher and has no debt group 2 or higher within 12 months from the date of loan application.
Project home loan products for KHCN
- Applicable subjects and loan purposes: Individuals who meet legal conditions and need to borrow capital to buy project houses (apartments, townhouses)/ to compensate for money spent on buying project houses.
- Income requirement: Minimum income of 5 million VND/person, in case of 2 spouses borrowing together, the minimum income of both is 10 million VND.
- Conditions for the project: The project has full construction legal documents and has not been mortgaged at any other credit institution.
- Collateral conditions: Can be assets formed from loan capital or other assets of the customer himself, or the borrower's parents/biological children, the normal loan amount is up to 70% of the appraised value.
- Other conditions: (i) Debt repayment ratio (customer's monthly debt repayment amount/customer's average monthly income) maximum 60% (ii) Maximum loan term 15 years + customer's age at the time of loan consideration is not more than 75 years old (iii) Customer's credit rating is A or higher and has no debt group 2 or higher within 24 months from the date of loan application
(iv) Loan application with financial obligation guarantee of the credit institution to the customer when the investor cannot hand over the house on schedule.
Consumer auto loan products for KHCN
- Applicable subjects and loan purposes: Individuals who meet legal requirements and need to borrow capital to buy a new car/used car/reimburse for car purchase.
- Income requirements: Minimum income from 8 million VND/month or more.
- Loan term: Maximum 07 years.
- Collateral conditions: Assets formed from loan capital (up to 70% of value)
car treatment
- Other conditions: (i) Debt repayment ratio (monthly debt repayment amount of customer/income)
(ii) Customer is not over 60 years old at the time of borrowing (iii) Customer's credit rating is from A or higher and has no debt group 2 or higher within 24 months from the date of loan application.
In addition, Vietcombank also cooperates with a number of partners to build separate products for each period, for example, Truong Hai auto loan products and Honda Vietnam auto loans.
Unsecured consumer loan products for SMEs
- Applicable subjects and loan purposes: Payment of legal expenses for consumption and living purposes of Customers and their families (purchase of electronic equipment, purchase of motorbikes, study/travel, medical examination and treatment, investment in equipment and home furniture).
- Income requirement: Minimum income from 5 million VND/month or more
- Loan term: Maximum 05 years.
- Loan limit: For non-position officers: maximum 12 times average salary but not more than 200 million VND/customer; for officers holding positions from deputy head of department or higher: maximum 18 times average salary but not more than 500 million VND/customer.
- Collateral conditions: No collateral.
- Other conditions: (i) Debt repayment ratio (customer's monthly debt repayment amount/customer's average monthly income) maximum 50% (ii) Customer is not over 60 years old at the time of borrowing (iii) Customer's credit rating is A or higher and has no debt group 2 or higher within 24 months from the date of loan application (iii) Customer's working time must be from 12 months
(iv) Borrowers must receive their salary through a Vietcombank account, except for customers working at state agencies, departments, branches, sectors, military, or police.
Secured consumer loan products for KHCN
- Applicable subjects and loan purposes: Payment of legal expenses for consumption and living purposes of Customers and their families (purchase of electronic equipment, purchase of motorbikes, study/travel, medical examination and treatment, investment in equipment, home furniture, not applicable for loans to buy cars, buy land, build houses).
- Income requirements: Minimum income from 5 million VND/month or more.
- Loan term: Real estate collateral up to 10 years, car collateral up to 5 years.
- Collateral conditions: Customer's collateral, third party blood relatives such as customer's parents/biological children, collateral can be cars, real estate... Loan rate according to the collateral policy of each period.
- Maximum credit level: 1 billion VND/customer.
- Other conditions: (i) Debt repayment ratio (customer's monthly debt repayment amount/customer's average monthly income) maximum 60% (ii) Customer is not over 65 years old at the time of borrowing (iii) Customer's credit rating is A or higher and has no debt group 2 or higher within 24 months from the date of loan application.
Consumer loan products for Vietcombank staff
- Applicable subjects and loan purposes: Payment of expenses for consumption and living purposes of Vietcombank staff and their families.
- Loan term: Maximum 05 years.
- Collateral conditions: For officers who appraise and approve loans with a deposit of 5 million VND, for other officers: loans without collateral.
- Maximum credit level: 24 times the employee's monthly salary, not exceeding 500 million VND/person.
- Other conditions: (i) Customers can only borrow at 01 Branch (ii) Must have confirmation from the head of the managing department.
- Loan interest rate: Exclusively for Vietcombank staff, equal to the 12-month post-paid savings interest rate of personal deposits at Vietcombank plus a margin of 0% - 1% depending on the job position.
Mortgage loan products for valuable papers (GTCG) at the counter for customers
- Applicable subjects and loan purposes: Enterprises borrow capital for consumption purposes without violating the law.
- Loan limit: If the currency of the collateral is VND, the maximum loan amount is 100% of the collateral value at the time of borrowing. If the currency of the collateral is foreign currency, the maximum loan amount is 95% of the collateral value at the time of borrowing, ensuring the ability to fully recover the principal and interest of the loan.
- Loan term: Customers can borrow a limit or one time, the loan term is not higher than the deposit term of the GTCG.
- Lending interest rate: changes according to VCB regulations from time to time, currently applied as follows: (i) GTCG applied to VND: for loans under 12 months, the lending interest rate is equal to the mobilization interest rate currently applied to that GTCG + 1.5%; for loans over 12 months, the lending interest rate is equal to the mobilization interest rate currently applied to that GTCG + 3%. (ii) GTCG applied to foreign currency: for loans under 12 months, the lending interest rate is equal to the mobilization interest rate currently applied to that GTCG + 2.5%; for loans over 12 months, the lending interest rate is equal to the mobilization interest rate currently applied to that GTCG + 3.5%.
b. Loan products for production and business
Business loan products for technology and science
- Applicable subjects and loan purposes: Supplementing working capital to serve production and business activities for self-employed individuals, business owners, and private enterprise owners with business registration certificates in accordance with the law, fully declaring and paying taxes.
- Loan limit: Up to 85% of reasonable costs to implement the business plan/ in case the legal profession does not require business registration, the maximum loan limit is 1 billion VND.
- Loan term: Maximum 12 months depending on loan needs.
- Loan conditions:
Customers must be 18 years old and not older than 70 years old at the time of credit application, and must meet all legal requirements such as full civil legal capacity and civil conduct capacity.
No group 2 debt at the time of loan application and no bad debt within 24 months from the date of loan application. Credit rating from level A or higher.
Customer's operating period is at least 12 months from the date of loan proposal
capital.
Customers fulfill tax obligations and financial obligations to the authorities.
government agency
Medium and long-term business support loan products for science and technology
- Applicable subjects and loan purposes: Self-employed individuals, members of business households, private business owners borrow new capital for the purpose of paying reasonable, valid and legal expenses for purchasing means of transport, machinery and equipment for factory construction, repairing and upgrading fixed assets.
- Customer conditions:
+ Customers must be 18 years old and not older than 65 years old at the time of credit application, and meet all legal requirements such as full civil legal capacity and civil conduct capacity.
+ The person signing the documents related to the loan is the individual business owner. In case the business has 02 or more members, all members
must co-sign or have legal authorization.
+ Customer has no debt group 2 or higher within 12 months from the date of loan application. Credit rating from A or higher at Vietcombank.
+ The customer's operating time according to the business registration certificate is at least 12 months from the date of loan application.
+ Business results within 12 consecutive months prior to the time of loan consideration. The product is profitable. The customer has fully fulfilled tax obligations to state agencies, and the production and business plan is assessed as feasible.
- Maximum loan limit is 70% of the project value and does not exceed 5 billion VND/customer, loan term is over 1 year and maximum 5 years.
- Debt repayment ratio at Vietcombank is not more than 60%.
Vietcombank's KHCN loan products include many standard products. To participate in this group of standard products, customers must fully meet the criteria and conditions of each product. Once participating in the standard product, the customer's loan interest rate is quite preferential. In case the customer is not eligible to participate in the standard product, the customer must borrow at the normal interest rate. The customer's loan interest rate is usually 1-1.5% higher than the standard product.
2.2.3 Current status of lending results for science and technology of Joint Stock Commercial Bank for Foreign Trade of Vietnam - Bac Ninh Branch
Outstanding loans to individual customers
From 2017 to 2020, the economic situation of Bac Ninh province was favorable and grew well, the GDP growth rate in 2017 and 2018 was 19.12% and 10.6% respectively, Bac Ninh province's GDP in 2017 and 2018 accounted for 3.25% and 3.4% of the country's GDP, maintaining its 4th position out of 63 provinces and cities nationwide (after Ho Chi Minh City, Hanoi and Dong Nai). Average income per capita at the end of 2020 reached 5.44 million VND/person/month, ranking 5th in the country. In recent years, Bac Ninh has gradually become one of the leading localities in the country in attracting foreign direct investment (FDI) into industrial parks with an open investment mechanism and a series of preferential policies, promotion and investment attraction activities. In 2017, Bac Ninh province attracted FDI capital of 3.4 billion USD, accounting for 9.5% of the total FDI capital of the country. In 2018, Bac Ninh province continued to attract FDI capital of 1.1 billion USD. By the end of 2018, Bac Ninh province had attracted about 1,300 valid FDI projects with a total investment capital estimated at 17.2 billion USD from 34 countries.