Banks propose raising small loan cap to $15,700

The proposal was made as the State Bank of Vietnam (SBV) has recently published draft amendments to a circular of the central bank regulating lending activities of credit institutions and foreign bank branches to customers.

Accordingly, for small loans not exceeding VND100 million, borrowers will not have to provide feasible capital use plans and related person information to credit institutions.

The draft policy aims to simplify procedures for granting loans with small value, which will contribute to creating more favourable conditions for customers to access bank credit for daily life and consumption demands to minimise illegal usury. Besides, it will help banks expand lending activities.

According to the latest statistical report of the General Statistics Office, Vietnam’s GDP per capita in 2023 is estimated to reach about VND101.9 million.

Therefore, the mark of VND100 million is the legal basis for the drafting committee to research and propose that a small loan is worth VND100 million in the draft circular.