What is consumer credit? Where to get fast and safe consumer credit loans? We invite you to explore the article now!
Need some money to buy transportation, appliances or necessary equipment for your family? The amount of money for the cost of studying, medical examination, treatment, travel, ... is too big that you can't manage in time? Want to borrow consumer credit but don't know where to get quick support? All will be answered right in the article.
First, understand what consumer credit is as well as learn the risks of consumer credit before taking out a loan!
Consumer credit (consumer credit) is the general term used to refer to the funds for loans to purchase consumer goods and services.
The object of consumer credit (TDTD) is usually the needs of individuals, such as:
- Buying and repairing houses.
- Purchase of real estate (liabilities): cars, motorbikes, televisions, refrigerators, etc.
- Spiritual needs: study, marriage, travel, ...
In order to create conditions for customers to satisfy their consumption needs (purchase of goods) , banks will provide consumer loans in cash or goods. Beneficiaries of credit cards do not have to mortgage any type of property, but only need to prove their recurring income. Consumer credit borrowers will have to pay a portion of the principal and interest each month.
The credit limit is based on the person's average income. The term of credit cards is usually less than 5 years.
Credit interest can be calculated in two ways: reducing balance or principal balance (depending on the bank). Calculating interest on the principal balance is that the credit borrower will have to pay a fixed interest from the beginning of the period to the end of the credit period. As for the reducing balance, the borrower will pay interest based on the actual outstanding balance in each period.
- Contributing to increasing aggregate demand to promote business development.
- Accelerate the consumption of goods, especially stagnant goods.
- Helps to expand customer relationships, thereby increasing people's ability to mobilize deposits
- Facilitate diversification of business activities and spread risks for the bank.
- Contributing to raising and improving the living standards of residents, allowing residents to enjoy the conveniences before the ability to shop.
This is a type of credit with high risk and high cost of lending institution, high interest rate. If abused, it will cause borrowers to spend more than allowed, reducing their ability to save in the future.
If credit is used to finance the purchase of goods and services abroad, it will reduce the ability to save in the country.
Based on each specific criteria, we can have the following forms of consumer credit loans .
*Based on loan repayment method:
- One-time loan (term loan)
- Revolving loan (current credit)
* Based on the form of loan guarantee:
- Mortgage loan
- Loans secured by assets formed from borrowed capital
* Based on the origin of the debt:
- Direct loan
- Indirect lending
Consumer credit has been growing steadily since about 1990 but has really formed in the last 10 years. However, the competition in this market is not high when the market share is still mainly in the hands of 3 big players, FE Credit, HD Saison and a 100% foreign owned enterprise, Home Credit.
● The credit card market is still small
Economic expert Dr. Can Van Luc said that the consumer finance market in Vietnam still has some shortcomings such as its small scale, the developed market also focuses mainly on a few large companies.
Difficulties in developing the consumer credit market because of the mindset of "afraid to borrow for consumption" and the financial companies themselves still have difficulty in raising capital (due to the underdeveloped capital market). There is a lack of transparency, uneven staff capacity and technology level, and the cumbersome apparatus leads to high operating costs.
● Consumer credit contributes to repelling “black credit”
Ten years ago, people gathered enough money to buy products, but now it is the trend to borrow and buy or even rent to use.
"Putting the issue of credit credit contributing to repelling black credit, I think it contributes to repelling black credit, because this activity is related but not necessarily the main tool. Consumer finance promotes production by many countries People make statistics about this data daily and weekly to promote the economy and run the economy," said Mr. Phan Duc Hieu, deputy director of the Central Institute for Economic Management (CIEM).
Consumer credit in the past 10 years has diversified with different customer segments for regions. The most common are cash loans , loans to buy home appliances, electronic equipment, phones, computers or vehicles (motorcycles). At the same time, the catalog has a whole group of modern products like some developed countries such as beauty care products, health products, etc.
Thus, through the above information, you have grasped the basics of consumer credit . Recognizing the benefits and risks, you want a consumer credit loan ? However, not every loan application will be approved, but still have to wait for banks and financial companies to appraise and approve.
So where can fast consumer loans, while ensuring safety and transparency?
CashBerry is one of the reputable financial consulting companies that is highly appreciated in the financial market. CashBerry is currently providing online loans with a limit of 1 - 10,000,000 VND, in order to solve the urgent need of money for people. Just register on your phone, you can receive the same day disbursement.
Benefits of quick loans at CashBerry:
● Simple procedure: just need ID card or CCCD
● No need to mortgage property
● No proof of income
● Quick disbursement within the day
● Lowest interest rate in the market, only from 0.9%/month
● All loan information is transparent in the contract
To get support for unsecured consumer loans, you can visit cashberry.vn or download the CashBerry app on CH Play and fill out a loan application.
Recently, there is information related to consumer credit issues . Hopefully, the article helps you gain new knowledge about finance. Don't forget to sign up for CashBerry if you need to borrow money online 24/7!