Phones and loans: the picture of the short-term loan market

July 21, 2015 | 14:00

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Some 70 per cent of Czech-backed consumer lender MTV Home Credit Vietnam’s loans have been used to purchase mobile phones.

A Home Credit Vietnam survey, based on the firm’s contracts valid in late-June 2015 and released last week, shows that the most popular mobile phone brand names are Samsung (25 per cent), Nokia (20.2 per cent) and Oppo (18.7 per cent). Only 11.5 per cent of customers bought iPhone.

Some 52 per cent of mobile phone buyers have sought loans for 6-12 (six to twelve?) month terms, and 47 per cent have (applied for/requested?) enjoyed loans for three to six months. More than 50 per cent of the buyers fall below the age of 30. Some 63 per cent are male.

Nearly 70 per cent of borrowers purchase phones at a price of VND3-8 million ($141-375.6). Only 15 per cent buy products for more than VND8 million ($375.6).

At present, customers with a monthly income of VND3-6 million ($141-281.7) make up 54 per cent of the firm’s total customers. Some 31 per cent have an income of VND6-10 million ($281.7-470) per month.

“Home Credit is making its best to support low and medium income people to have access to modern financial channels. Such people find it very hard to access bank loans to buy daily products,” said Home Credit Vietnam’s general director Friedrich Weiss.

By By Thanh Tung

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