How to get an unsecured loan in Vietnam

When it comes to borrowing money, there are several options available. One of them is an unsecured loan, which is a loan product offered by banks and other lending institutions without requiring collateral. Your creditworthiness is evaluated based on proof of income.

Unsecured loans can be used for various purposes such as buying furniture or household appliances, renovating a home, getting married, traveling, or paying for medical treatment. The limit of unsecured loans for each lender varies, with the loan amount being up to 15 times the borrower’s salary. The loan term is flexible and can vary from 1 to 60 months. Interest rates on loans also vary and are calculated based on the amount of the loan and the term of the loan. You can find a loan with the right credit rate for you on VayTienMat24 website.

Organizations issuing unsecured loans in Vietnam

Loans for amounts up to 20 million dong are issued, as a rule, by microcredit organizations. And loans for larger amounts, borrowers can take in banks. What is the difference between microfinance organizations and banks?

Microfinance organizations differ from banks in that they are more willing to lend money without a detailed check of the borrower’s solvency. As a result, microfinance institutions take more risks and charge higher commission fees for issuing borrowed funds. Microfinance organizations can only issue loans online, while banks require a visit to their office.

Microfinance institutions are not direct competitors of banks. Microcredit borrowers usually turn to them when a regular bank does not grant them money or does not allocate enough credit card limit. A significant advantage of microfinance organizations is their simple 24/7 issuance procedure. However, they only give small amounts for a short period of time, up to one month, with interest rates being the highest and reaching up to 1% per day.

Banks offer unsecured loans at much lower interest rates. There are three types of unsecured bank loans:

  • Cash loans for consumption
  • Installment credit for the purchase of goods
  • Overdraft loans.

Cash loan. After signing the agreement, the loan amount will be transferred to your account by the bank. However, you can still get cash directly from the operating office.

Installment loan for the purchase of goods. With this credit, you need to pay 10% – 50% of the value of the goods, depending on the seller. The rest is paid to the seller by a financial institution, that is, the borrower does not receive money on the card. To repay the loan, you simply need to make regular installment payments every month until the loan amount, fees, and interest are depleted.

Overdraft loan. When using this product, the bank will allow you to spend more than the amount currently in your account. Interest will accrue on the excess amount you have spent.

When considering an unsecured loan, it is essential to evaluate your financial situation and ability to repay the loan. It is also crucial to compare interest rates and terms from different lenders to find the best option for your needs. Unsecured loans can be a great way to finance your needs without putting your assets at risk, but it is essential to borrow responsibly and make timely payments to avoid damaging your credit score.

The procedure for obtaining an unsecured loan

First of all, the borrower must decide with which credit institution he is ready to cooperate. If his choice fell on a microfinance company, then it is enough to study the rules of the microfinance company providing the service. The vast majority of microfinance market participants are ready to cooperate with the client by providing only one document – CMND. With its help, the fulfillment of two basic requirements for the borrower is confirmed – the presence of citizenship and the attainment of majority.

From the foregoing, we can draw an obvious conclusion: the main thing you need to take a microloan is a passport. The vast majority of microfinance services are provided remotely today. During the application for a microloan, a scan of the passport is attached to it. If services are received at the office of a microcredit company, you will need to present the original document and, if necessary, make a copy.

Almost all prominent participants in the financial market adhere to similar rules of work. This is explained both by the constant strengthening of control over their activities by the Central Bank, and by no less regular tightening of legislative requirements.

When applying for a microloan for a long period or for a serious amount of several tens of millions of dong and more, a microcredit company will require the provision of additional documents. Their list may include:

  • the second identity document – passport, driver’s license, pension certificate, etc.;
  • consent of the spouse, if the borrower is married;
  • certificate from the place of official employment, confirming that the borrower has a stable income sufficient to fulfill financial obligations.

Almost all banks will be able to issue a loan if you bring a certain set of documents. The list for different banks may vary. In addition, the difference also depends on whether the money is transferred to the card or not. But usually everywhere you need a CMND, income documents and a completed application form.

In addition to the fact that the rules are different for different banks, there are differences for issuing targeted and non-targeted loans.

If you want to take out a loan for the purchase of furniture (target loan), then the package of documents may be limited to CMND and a bank statement. For more accurate information, please visit

For a general purpose loan or a cash loan, the list of documents will be longer:

  • Such a document can be a CMND, since it has the highest degree of identification, but a driver’s license may also be suitable.
  • A document confirming income. This could be a bank statement to which your employer transfers your salary, or pay stubs issued by your company’s accountant. They must contain information for the last three months.
  • A copy of the employment contract.

Sometimes the bank may also ask for additional papers, but usually the documents in question are always requested and you can add them online. Depending on the circumstances, they may be asked to bring insurance documents.

In conclusion, microloans can be a great way to access funding for small businesses or unexpected expenses. They are often more accessible than traditional bank loans and have shorter repayment terms. However, it is important to evaluate your ability to repay the loan and research the lender thoroughly before applying. With responsible borrowing and timely repayment, microloans can help individuals achieve their financial goals.