Home Credit Vietnam hit big jackpot

The company has reported that in the first four months of 2016, its cash loan volume grew 80 per cent year-on-year, accounting for 27 per cent of the whole company’s total outstanding loans.

Home Credit has made some statistics on cash loan customers to have a clearer picture of customers getting cash loans at the company. The statistics are based on active cash loan contracts of Home Credit in the first four months of this year.

Home Credit Vietnam has two groups cash loan customers, comprising those who have not had any credit contract with the firm before, and those who already had at least one credit contract including installment loan contract to buy phones, motorbikes, or home appliances before. The former group can borrow a maximum VND20 million ($909) in cash from Home Credit while the latter can get a maximum cash loan of VND60 million ($2,727).

The average age of cash loan customers at Home Credit is 32.5. This partly explains for the statistics that 70 per cent of Home Credit’s cash loan customers are married. This figure is also similar to statistics on customers who get installment loans from Home Credit to buy two-wheel and consumer durable products. The figures show that married customers’ spending demand are higher than single ones which make up 24 per cent of Home Credit’s customers.

For fresh cash loan customers, the most popular loan amount is VND7-10 million ($318.2-454.54) with the average tenor of less than one year (60 per cent customers choose to get loan within 6-12 months). Meanwhile, the majority of customers who already used Home Credit’s service earlier choose to borrow VND20-30 million ($909-1,363) with the popular tenor of more than 24 months.

Among cash loan customers in the first four months of this year, more than 20 per cent have had at least two cash loan contracts with the company. This statistic not only reflects the satisfaction of Home Credit’s customers but also shows the responsibility of customers in terms of debt payment.

“It’s because how customers make payment for the first loan is an important indicator to be considered when we review their second loan applications,” said a risk management specialist of Home Credit Vietnam.

In terms of customers’ occupation, 50 per cent of Home Credit’s cash loan customers are workers and unskilled labourers while people relating to sale jobs account for 11 per cent, people having administrative jobs make up 8 per cent, technicians account for 6 per cent, and farmers 6 per cent. In terms of literacy, 80 per cent of Home Credit’s cash loan customers have a secondary education level.

Starting operation in Vietnam since 2009, cash loan volume of Home Credit always maintained the two-digit growth during 2010-2015, with an annual average rate of 57 per cent.