House building, repair loans reach VND180 trillion in ten months

SGGP
Consumer credit has quickly increased mainly from house building and repair which approximated VND116-180 trillion (US$4.98-7.72 billion) accounting for 38-40 percent of total consumer credit liability in October, reported deputy director of State Bank of Vietnam (SBV) in HCMC yesterday.

Banks will tighten real estate loan (Photo: SGGP)

Banks will tighten real estate loan (Photo: SGGP)

Capital flow to priority fields has showed signs of slowdown. Currently, consumer interest at financial firms is much higher than loan rates at commercial banks, hitting 60-70 percent a year.
Hence, consumer loan activity at financial firms contains lot of risks.
Consumer credit accounts for 19.4 percent in HCMC. Bad debt ratio of this segment makes up 4.2 percent of total liability.

By NHUNG NGUYEN – Translated by Hai Mien

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