Local lenders were hesitant to approve more bank loans retail traders have applied recently, analysts said.
A HCM City-based retailer said she was able to get a loan of VND780 million (US$48,300) from An Binh Bank but it was less than what she applied for.
“I wanted to borrow more than that but the local banks didn’t agree,” the jewelry shop owner in HCMC’s Tan Binh District, Nguyen Thi Thanh Thuy, said.
“Retail traders like me are in need of capital this time. So our businesses would be much better if lenders raised the loan limit,” Thuy said.
A local bank said the coming Tet holiday contributed to the need for more loans.
“The number of customers which are retail traders is increasing sharply. They’ve needed a lot of money recently to stock up on goods to deal with the increased demand in the Tet holiday,” An Binh Bank Individual Client Director Dam The Thai said.
Local lenders only offered one year loans up to VND100 million (US$6,200), to retail traders who mortgaged their shop.
Others who wanted to borrow larger amounts had to mortgage higher value properties.
Thai said it was hard to assess the actual revenues and income of retail traders as they rarely give sales receipts.
He said most local banks were less willing to provide loans for retail traders without receipted proof of income.
One of the few banks which offers loans to retail traders, An Binh Bank, provides a five-year loan worth VND5 billion (US$309,700) for licensed market shopkeepers, and VND500 million (US$30,970) for unlicensed. (Young People)
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