Salary-based Loans - Which Banks Offer Loans and Procedures

Currently, there are many banks in the market offering salary-based loans to meet customer demand. However, each bank offers different loan amounts and interest rates, which can make customers feel uncertain. Therefore, understanding which bank offers loans and the loan procedures based on salary will provide you with the most comprehensive overview.

Which banks are currently offering low-interest salary-based unsecured loans

I. What is Salary-based Loan?

Salary-based loan (or commonly known as salary-based unsecured loan) is a loan type that only requires proof of income from salary, either in cash or via bank transfer, without the need for collateral, aiming to borrow for wedding expenses, travel, installment payments, etc.

Depending on the salary statement and income confirmation documents, customers will be considered and their applications approved for loans with varying amounts, some may borrow more, some may borrow less, with a maximum limit of up to 500 million VND.

Salary-based loans come in two forms:

- Salary-based loan via bank transfer: Based on the stable monthly income of the borrower, catering to customers with needs for buying cars, home renovations, real estate purchases, etc. The interest rate for this loan type will be deducted directly from the customer's account when they receive their salary. Therefore, borrowers do not need to visit the bank to repay interest every month.

- Salary-based loan in cash: This is a loan type that does not require collateral but relies solely on the monthly income from salary. Some banks apply and implement this method to meet the needs of customers who receive cash salaries and require cash loans based on salary.

Depending on the loan application and various conditions such as your profession, monthly income, employer, etc., your loan amount and interest rate may vary.

II. Advantages and Disadvantages of Salary-based Loans

1. Advantages

- No need for collateral, third-party guarantor required
- Flexible loan amount, interest rate, and credit limit
- Enjoy various benefits
- Simple, convenient procedures and documentation
- Bank ensures customer rights
- You will have the desired amount of money right away

2. Disadvantages

- Variable interest rates, payment terms change with each period
- Complex administrative procedures, many supporting documents required
- Customers will incur various fees such as notary fees, appraisal fees, etc.
- Banks rigorously screen and classify applications
- Banks apply high penalty fees for early or late payments

III. Banks Offering Salary-based Loans

The salary-based loan scheme is implemented by many banks to facilitate easier access to loans for customers. Among them, the top 8 banks listed below offer the best mortgage-based salary loans, which are popular choices for many:

1. Vietcombank

Vietcombank's salary-based loans offer attractive preferential interest rates of 10% per year, with a loan term of up to 5 years and a maximum loan limit of 500 million VND. The disbursement period is only 2 - 3 working days, coupled with the bank's reputation, making salary-based loans at Vietcombank a good choice for many.

* Loan Conditions:

- Customers must be between 21 and 55 years old for females, and not exceed 58 years old for males.
- Capital management officials - Officers, civil servants, officials, and employees working under the state budget regime (Labor Contracts) (CBCNV), holding managerial positions from department level or equivalent upwards.
- Staff loan officers - Officers, civil servants, officials, employees working under the state budget regime or labor contracts at organizations.
- Must have a labor contract of at least 1 year.
- Transfer salary, at least 5 million VND/month for the last 3 months.

2. Agribank

Agribank's salary-based loan policy for customers:

- Maximum loan amount is 50 million dong within 12 months
- Interest rates range from 0.6 - 1.0% per month
- Loan term up to 60 months
- Customers can use the amount exceeding the balance in the non-term deposit payment account

* Agribank's Capital Loan Conditions are as follows:

- Customers aged between 21 - 55 for females, males not exceeding 58 years old
- Being a state officer or employee working in provinces and cities where Agribank operates
- Clear and legal borrowing purposes
- No bad debts or overdue payments. The mortgage or unsecured debt to the bank is not too high
- Salary transferred through cards at Agribank

* Agribank's Salary Loan Documentation Procedure

- Identification card/citizen ID/passport
- Copy of household registration book
- Labor contract
- Salary account statement

3. BIDV Bank

The preferential policy for salary-based loans at BIDV Bank for customers is as follows:

- Can borrow up to 15 times the monthly income, maximum of 500 million dong
- Maximum loan term of 60 months

* Loan Requirements

- Women aged 18 to 55, men not exceeding 60 years old. For customers in specialized fields such as officers, professors, professional soldiers, etc., the appropriate age for labor will be considered.
- Stable income, ensuring the ability to repay debts
- Permanent or temporary residence in a province/city with the bank offering loans or working in a province/city with the bank offering loans and having permanent residency in an adjacent area to the lending bank.

* Loan Documentation Procedures

- Loan request form as per BIDV's template
- Identity card/citizen ID/passport/military officer card
- Labor contract/staffing decision
- Permanent/temporary residence registration
- Latest 3-month salary statement

VPBank offers personal loans based on salary income

4. VPBank

VPBank provides both cash-based and transfer-based salary loans to meet the borrowing needs of all customers. Depending on the loan type and income source, interest rates and loan limits vary, with interest rates ranging from 17% to 18% per year and loan limits up to 500 million VND.

* Loan Requirements

- Applicants must be between 23 and 60 years old
- Minimum post-tax income of 4.5 million VND per month

* Required Documents

- Loan application form provided by Sacombank
- Copy of ID card/identity card/residence book/equivalent document
- Salary statement, income confirmation, payroll, labor contract ...
- Other documents as required by each loan type and bank

5. Sacombank

When utilizing Sacombank's salary-based loan product, customers can enjoy various benefits:

- High loan limits and fast disbursement
- Simple procedures
- Complimentary Credit Safety Insurance from the bank
- Low interest rates ranging from 0.85% to 1.3% per month, equivalent to 10.2% to 15.6% per year
- Maximum loan amount of 500 million VND, with a maximum loan term of 5 years

- In case of disability or death, the outstanding loan balance will be covered by the insurance company based on the terms agreed upon between the insurance partner and Sacombank.

* Conditions and Procedures for Salary-Based Loans

- Customers should have at least 1 year of experience in their current field.
- Loan request form according to Sacombank's template
- Copy of ID card/citizen identification card/passport
- Copy of household registration/residence permit
- Proof of employment and seniority at the same salary level
- Appointment/transfer decision, salary slip

6. Techcombank

Interest rates range from 1.5% per month, with loan limits up to 300 million VND, and loan terms up to 60 months. Techcombank offers quick disbursement and simple procedures, making it a popular choice for salary-based loans.

* Loan Conditions:

- Customers must be at least 20 years old at the time of loan application, with a maximum age of 60 at the time of full repayment.
- Have a labor contract of at least 12 months or an indefinite-term contract.
- Total income through the bank must be at least 5 million VND per month, paid through a bank account.
- Permanent or temporary residence registration KT3 at Techcombank's branch/transaction office where the loan is registered.
- Other conditions apply.

7. TPBank

The features of salary-based loans at TPBank include:

- Maximum loan amount is 10 times the monthly income, not exceeding 500 million VND.
- Preferential interest rates.
- Loan terms from 6 to 48 months.
- No collateral required and third-party guarantee.

* Loan Conditions

- Must be a Vietnamese citizen with good health.
- Have a clear purpose and plan for capital usage.
- Minimum income of 4 million VND per month.
- Within the working age, holding Vietnamese nationality.
- No history of bad debts.

8. Maritime Bank

The loan limit for salary-based loans at Maritime Bank depends on the customer's income, with a maximum borrowing capacity of up to 24 times the income, capped at 500 million VND. Enjoy preferential interest rates ranging from 0.8% to 1.3% per month, with a loan term of 60 months.

Loan Eligibility:

- Applicants must be at least 20 years old at the time of loan application, and not older than 60 at the time of full repayment.
- Must have permanent residency or temporary residence in a province/city where Maritime Bank operates.
- Have a labor contract of at least 12 months or an indefinite-term contract, state employment.
- Monthly income must be transferred or payable in cash, at least 2 million VND.

IV. Loan Eligibility and Procedures

1. Loan Eligibility Criteria

The bank's regulations regarding credit eligibility based on salary are as follows:

- Individuals aged 20 - 60
- Must have a minimum income of 3 million VND (including salary + commission)
- Have a labor contract or can be substituted with a work confirmation letter
- Provide salary slips for the last 3 months and a copy of the salary confirmation letter

2. Procedures for Salary-Based Personal Loans

Most banks offering salary-based personal loans apply the following general documentation procedures:

- Identity card/ID card

- Household registration book or temporary residence book located within the area where the bank operates.

- Passport-sized photo

- Documents proving current employment such as labor contract, confirmation letter of current employment to verify employment status

- Documents proving income sources such as pay slips, salary statements, or income confirmation.

V. Which bank should you choose for unsecured loans based on salary?

Which bank is the best for unsecured loans? With salary payments via bank accounts becoming increasingly common among companies, the demand for loans based on salary transfers is on the rise. Here are some of the best banks for loans based on salary transfers:

1. BIDV Bank

Customers borrowing based on salary transfers with BIDV Bank will receive:

- Loan limits up to 15 times the monthly income but not exceeding 500 million Vietnamese dong
- Loan term up to 60 months

Loan conditions:

- For females aged 18 - 55 and males aged 18 - 60
- Having permanent or temporary residency in the province or city where the BIDV branch/transaction office you borrow from operates
- Having stable and regular income, ensuring the ability to repay debt.

2. Agribank

The preferential program offered by Agribank for salary-based loans via bank transfer:

- Maximum limit of 50 million Vietnamese dong for a period of up to 12 months
- Customers can use an amount exceeding the balance in the non-term deposit payment account.
- Interest rates range from 0.6% to 1.0% per month.
- Maximum loan term is 60 months.

3. Vietcombank

With Vietcombank, customers applying for salary-based loans will receive the following benefits:

- Loan limit of up to 12 months' salary, with a maximum loan amount of 200 million Vietnamese dong for staff members and 300 million Vietnamese dong for executives.
- Fast and simple loan procedures
- This loan limit can be used for products such as cash loans, consumer loans, and credit card issuance.
- Cash advance limit of up to 30 million Vietnamese dong over a period of 12 months.
- Interest rate around 15% per annum
- Ability to quickly manage loan withdrawals and repayments through services like VCB SMS Banking and VCB-iBanking.

4. Sacombank

When borrowing through Sacombank's salary-based loan program, customers will enjoy various benefits such as:

- High loan amount
- Free Credit Security Insurance
- Simple loan procedures
- Quick disbursement

The loan term can be up to 5 years, depending on the position of each individual, Sacombank offers different loan amounts, specifically:

- Loan limit for staff members is 150 million Vietnamese dong
- Loan limit for department heads/deputy heads is 300 million Vietnamese dong
- Loan limit for unit heads/deputy unit heads is 400 million Vietnamese dong
- Loan limit for special customers is 500 million Vietnamese dong

VI. Interest rates for salary-based loans

Each bank will apply different interest rates for salary-based loans, but it depends on the customer's place of residence, income level, and the most reasonable interest rate set by the bank or financial institution. Monitor the interest rates of each bank and financial institution

For example, the interest rates for salary-based loans offered by banks and financial institutions in 2018

From this salary-based loan interest rate table, you can easily see the difference in interest rates among banks, especially between domestic and foreign banks. The lowest credit loan interest rate is offered by BIDV at 12.6%, while the highest interest rate belongs to HDBank at 28%. The loan terms of banks range from 4 to 5 years, except for HDBank, which offers a term of only 3 years.

With the information shared above about banks offering salary-based loans, the loan procedures will hopefully help you make an informed decision in choosing a loan bank. Salary-based personal loans are now preferred by many due to the absence of collateral requirements and quick loan transactions at reasonable interest rates.