Home Credit Vietnam records bumper crop
Home Credit Vietnam records bumper crop
Czech-backed consumer financial firm Home Credit Vietnam has reaped good business results in the year’s first half.
The firm reported that it enjoyed a year-on-year 38 per cent rise in motorbike purchase loans last year, and a year-on-year increase of 60 per cent in this year’s first half.
The firm’s head of Sales Jiri Badr ascribed this dramatic rise to changes in Home Credit’s development strategy in the two-wheel segment in 2016.
Specifically, the firm launched a product with the lowest interest rate on the market (1.39 per cent per month). Loan application procedures have also been simplified, meaning customers only need to show their identity cards (ID) and driving licences, instead of ID and family registration books.
Besides, Home Credit has entered into a co-operation with partners in deploying interest-free loans for motorcycle purchases. Currently, 20 per cent of Home Credit’s customers have been enjoying 0 per cent interest rate loans to acquire motorbikes.
“This year, Home Credit sets a goal of increasing the sales volume in the two-wheel sector by 40 per cent. Besides providing low interest rate loans, Home Credit continues negotiating with dealers to introduce 0 per cent interest rate loans nationwide. Home Credit is now a strategic partner of 1,100 motorcycle retailers, covering 1,800 outlets nationwide,” Badr said.
The most popular means of transportation, Vietnamese people are using 45 million motorcycles. Because of the importance of this segment and to comprehend customer habits, Home Credit has made interesting statistics about customers applying for loans to purchase motorcycles since the beginning of 2017.
Some 60 per cent of customers buying motorcycles with instalment loans are male (40 per cent are female), a proportion similar to the customer structure of Home Credit.
The average cost of a motorcycle purchased by male customers is VND34.7 million ($1,577) while it is VND35.3 million ($1,604) for female customers.
Therefore, loans taken up by lady customers are valued at VND21.1 million ($959) on average, which is higher than the average male borrowing of VND20.55 million ($934). More than 5 per cent of these customers chose loans with tenors from six to 12 months.
