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Borrowers rush to pay off loans
Many borrowers who took out high interest rate bank loans months ago are seeking credit on the black market to pay off their loans before their maturity date.
With interest rates on bank loans as high as 18 percent to 21 percent several months ago, borrowers are looking to the black market for loans at an average of 0.5 percent per day (12 percent a month).
Two months ago, Nguyen Thi Thanh Mai of Hanoi ’s Dong Da district borrowed 100 million VND from Hanoi ’s Techcombank at an interest rate of 21 percent per year for a six-month term and she has paid the interest for two months and will have to continue to pay about 7 million VND for the remaining four months.
“I borrowed 100 million VND from the black market on a seven-day term. With such an interest rate, I had to pay a total of 3.5 million VND only. Then I used the money to pay my loan four months ahead of schedule at Techcombank,” she said.
Like many others who have borrowed from the black market, Mai went to a Commercial Bank, Agribank, to take advantage of interest rates that have dropped sharply in the last few weeks.
Her loan at Agribank, at 14 percent interest per month, will be used to pay off her black market loan.
Mai is only one of hundred of individuals and enterprises nationwide who are taking out loans on the black market.
One black market loan dealer, who requested anonymity, said that many companies had been asking to borrow money to pay bank loans before maturity.
He said they often accepted hot loans at interest rates of between 0.5 and 0.7 percent per day and with terms of five to seven days.
To qualify for the loans from the black market, borrowers must use as collateral their ownership certificates for houses or cars if they want to borrow at least 300 million VND.
Several websites have been set up that give information about acquiring loans from the black market.
In mid-October the bank loan ceiling rate was 21 percent per year, falling to 15 percent in late November.
The average interest rate on bank loans has dropped and is now an average of 11 percent.
vna
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