Deal signed to disburse loans worth $836m to wean workers away from sharks
Deal signed to disburse loans worth $836m to wean workers away from sharks
HDBank subsidiary HD SAISON Finance Company Limited and a finance company owned by VPBank have signed an agreement with the Vietnam General Confederation of Labour to provide loans of VND20 trillion (US$836.6 million) to workers at industrial parks around the country.
The agreement followed directions by the Prime Minister and the State Bank of Vietnam to provide workers with loans at preferential interest rates to protect them from loan sharks.
The signing ceremony in Ha Noi on October 7 was attended by the central bank’s standing deputy governor Dao Minh Tu, vice chairman of the Vietnam General Confederation of Labour, Phan Van Anh, general director of HD SAISON, Nguyen Huu Nhan, and the general director of Fe Credit.
HD SAISON is committed to deploying a package of VND10 trillion ($418.3 million) in the form of consumer loans, loans for essential needs and credit cards at half the market interest rate for workers at industrial parks and factories across the country.
It will also regularly update and prioritize promotions and incentives for workers, and continue to help local labour confederations support grassroots trade unions that organise activities and events to improve social welfare.
Speaking at the ceremony, a company spokesperson said: “HD SAISON is honoured to be entrusted by the Government and the State Bank of Vietnam with the task of implementing a loan package of VND10 trillion for workers. HD SAISON is committed to carrying out it with the highest sense of responsibility.
“With a network of more than 24,000 service referral points and a diverse portfolio of loan products, HD SAISON quickly meets the personal consumption financial needs of many people, especially middle- and low-income and self-employed people, who have great demand for loans but are unable to meet qualifying conditions to obtain loans from banks.
“Workers are among the customer groups HD SAISON has been focusing on serving.”
HDBank will not disburse directly but do it through HD SAISON, the finance company with the largest network in the market.
Through HD SAISON’s more than 24,000 transaction points in 63 provinces and cities, workers and employees even in remote areas will find it easy to access this preferential loan package.
In addition, the HD SAISON app, integrated with the most modern technology available today, helps customers access the loans conveniently.
In June 2022, soon after being commissioned to provide the loan package, HD SAISON coordinated with the Vietnam General Confederation of Labour to conduct fact-finding trips at some grassroots trade unions and industrial parks to design a loan package that meets the practical needs of workers.
In the past HDBank was one of four lenders selected by the central bank to support other weak banks, underlining its prestige and liquidity.
