Latest News about black credit
Business managers are receiving calls asking them to pay their debts from black credit sources. But the debts were personal loans taken out by their employees.
Social networks are now flooded with advertisements for easy loans with low interest rates and simple procedures through apps.
Seventy-one percent of businesses anticipate revenue decreases in 2021, higher than the 65 percent figure in 2020, according to a survey.
Scammers are impersonating officers of online lending apps, promising loans at low interest rates in order to appropriate money from people.
Many businesspeople have complained that they have had to sell cars and fixed assets to maintain operations. Some have even sought capital from black credit sources with exorbitant interest rates.
Some people who have not earned enough money because of Covid-19 and have had to borrow money have fallen into traps set by usurers.
Experts have repeatedly rung the alarm bell over black credit, which is causing serious consequences to families and society.
As of March, more than 6.4 million poor and near-poor households had won access to loans from the Vietnam Bank for Social Policies (VBSP).
The Cu Lao Dung district Police in Soc Trang province on March 31 detained and questioned Tran Thi Tuyen about the organization of a fake funeral at her home.
The poor, who lack financial information and knowledge, are often hurt by black credit. But many businesspeople have also become victims.
The Ministry of Planning and Investment (MPI) has warned about the increasing use of foreign peer-to-peer (P2P) lending in Vietnam with potential risks of black credit.
Black credit grew strongly in 2020 when many people lost jobs because of Covid-19 and faced financial problems.
The Central bank has lowered its interest rate cap three times by a combined of 1.5-2 percentage points per annum, which is the largest cut in the region.
A young woman borrowed VND8 million via an app, but the total amount of money she had to pay after three months reached VND200 million. Unable to pay the debt, she killed herself.
Since black credit is creeping into every corner of society, commercial banks also need to reach out to every village to combat it and scramble for clients.
Covid-19 has caused many people to lose jobs and has paved the way for black credit to emerge.
It is now easier than ever to borrow money through apps, but paying back the debts can be difficult since interest rates can be 700-1,400 percent per annum.
Vietnam’s fintechs have discovered that some Chinese apps which have lent money at exorbitant fees have been leaving Vietnam quietly.