Whether you take out a loan from a bank or take out a loan from a financial company, there are certain risks. So Should I borrow FE Credit? are not? Compared to other borrowers, does FE Credit scam users? If you are still quite afraid of these issues, let's find out in detail in the analysis below.
About FE Credit
FE Credit formerly the Consumer Credit Division under the Vietnam Prosperity Commercial Joint Stock Bank (VPBank) - one of the most prestigious commercial joint stock banks in Vietnam today. After a period of operation, in 2015, FE Credit was separated into an independent legal entity called Vietnam Prosperity Bank Finance Company Limited - FE Credit.
Currently, FE Credit has been licensed by the State to operate in the lending industry, and all activities of FE Credit are under the control of Vietnamese law. So when customers choose to come to FE Credit, all activities of both parties will be protected by law.
Should I borrow money from FE Credit?
Whether or not to borrow FE credit is a matter of concern to many people when they are in need of financial capital. Up to now, FE Credit has been operating in the financial services industry for about 7 years and provides many customers with reasonable financial services.
Specifically, whether we should borrow FE Credit or not, we need to consider many aspects as follows:
Advantages
When it comes to FE Credit, everyone knows that this is a financial lender with a variety of consumer loan products. Including cash loans, loans to buy phones and computers; loans to buy motorbikes, etc. All financial activities are done quickly and flexibly with attractive interest rates as follows:
- For cash loans, the disbursement amount can be up to 70 million VND. The installment period lasts from 6 months to 36 months. Interest rates range from 1.75% - 3.27%/month
- Loans to buy phones and electronics from the same time, you can borrow money to spend on any 3 products and apply the 0% installment program. Flexible loan period from 6 to 24 months
- Car loan will be supported up to 100% of the value of the car with a maximum installment period of 36 months.
- Simple loan documents just need a statement (salary statement with the bank's stamp within the last 3 months); Electricity bills, Insurance contracts, Car sleepers, Bank statements, etc.
Limit
The only disadvantage when borrowing FE credit is the higher interest rate compared to bank loans because of simple loan conditions and procedures, and quick disbursement time. If you are in need of a quick loan, choose FE Credit to complete your loan application quickly and disburse timely.
See more:
List of bad debts FE Credit
Is FE Credit a scam? Why this information?
The reason why many people wonder if they should borrow FE credit and suspect that FE Credit is a scam is because they do not fully understand the nature of this service. The fact that FE Credit is fraudulent is false information, because:
Don't know how to calculate interest rate
The interest calculation is the first thing that everyone needs to understand when applying for a loan at FE Credit. This problem can arise from two sides, FE staff do not advise customers carefully on how to calculate interest rates as well as customers do not read carefully the information of the contract signed.
Currently, FE is implementing two methods of calculating interest rates as follows:
- Interest rate according to the decreasing balance
- Interest on initial balance
In which, the interest rate on the initial balance is usually lower than the interest rate on the declining balance. That is, in the same loan, the interest rate on the reducing balance will usually be at 47%. But the interest rate on the principal balance will be at 30%. Counselors who are under pressure to target will often give vague advice that the interest rate is from 30% and do not clearly explain how the interest rate is calculated. So it's time to collect new monthly interest rates, making consumers confused.
Example: Customer borrows 50 million in 12 months.
The initial outstanding balance interest rate is 2.5%/month, the interest payable will be equal to the interest x monthly interest rate. The equivalent amount is 50 million x 2.5% = 1,250,000 VND/month. The total amount of interest payable during the loan period will be 1,250,000 x 12 = 15,000,000 VND
The interest rate on the reducing balance is 3.92%/month, and the monthly interest payable will be equal to the actual outstanding balance x monthly loan interest rate. Where actual outstanding balance = Loan amount – Principal amount paid. So the amount of interest to be paid throughout the loan process will be VND 13,634,898.
Early settlement incurs a penalty fee
When applying for a FE credit loan, if customers pay off early, they will have to pay a penalty fee. The penalty limit will usually range from 2 to 5% of the total amount prepaid. If during the consultation process, the FE staff does not mention the penalty fee when paying before the due date, many consumers will be "surprised" and think that FE is a scam. While this is a general rule and the wrong one belongs to the consultant.
Unable to understand fees and interests when paying late
When FE credit is an unsecured loan, it means that even if it is only 1 day late, customers also have to pay penalty fees and penalty interest is often very high. In accordance with regulations, the penalty interest rate will be calculated at 150% of the interest rate within the term.
So as long as you don't pay attention to the interest payment time, customers will face the situation that they have to pay a much higher interest rate than they actually are. This situation often occurs in customers who do not read loan documents carefully.
There is no need, but FE Credit still opens a credit card
In addition, many people consider FE credit loans a scam because there is no need to open a credit card, but FE staff still open cards and send cards to their homes and make monthly statements for customers. This makes many people confused when applying for FE Credit loans.
Summarizing the shared content, what any customer who wants to borrow from FE Credit needs to actively read the contract carefully. If you see any information that you do not understand, you should immediately report it to FE staff for support.
FE Credit unsecured loan products
Currently, FE Credit is deploying 3 types of unsecured loan products to best suit the consumption needs of customers:
Cash loan
Cash loan service has been expanded recently by FE credit to quickly meet the consumption needs of the majority of customers. This form of loan is suitable for customers aged 20-60 with an income of 3 million VND/month. The loan application only needs to have a minimum of documents such as ID card, household registration book, salary sheet, electricity/water bill, etc.
The loan package period lasts from 6 to 36 months with a loan limit of up to VND 70 million and an interest rate of 1.75% - 3.27%/month. This loan product can be made in the form of a salary loan, a loan under an insurance contract, etc.
Loan to buy motorbike
The type of loan product offered by FE credit is expanded, followed by a car loan package. Currently, this loan package is deployed in more than 2,000 retail motorcycle stores nationwide for the age group from 20 to 60 years old, with an income of 3 million VND/month.
Just have ID card, household registration, you can proceed to make a car loan application with interest rate from 1.75% - 3.27%/month. When making this car loan contract, you need to pay close attention to the content, including how to calculate the interest rate on the principal balance and how much the late payment penalty fee is.
Loans to buy phones - electronics
The last loan package bearing the FE credit brand is the loan package to buy phones, electronics, and refrigeration. Currently, this form of loan applies to customers aged 20 - 60 years who have a minimum of ID card, household registration book or driver's license. Compared to the above two loans, the interest rate on this loan is only about 0% - 3.59%/month and calculated according to the interest rate based on the principal balance.
If the payment is late, customers need to pay an additional fee of 150,000 VND.
What is FE Credit's unsecured loan interest rate?
FE credit's unsecured loan interest rate is currently 21%/year. For electrical appliances, refrigeration products, etc., the interest rate can be 0%.
How to borrow money from Fe Credit safely?
To be able to borrow FE credit safely, you need to pay special attention to the following issues:
Read the contract carefully
It is necessary to read the contract carefully to decide whether to borrow FE credit or not. If you find the interest rate is too high to follow, you may not be able to make a loan application to create a certain safety.
How to calculate interest rate
Understand exactly how FE credit interest is calculated. If you do not know how to calculate interest rates as well as penalties for late payment, there will be many potential financial risks.
Borrow only the amount you need
Should I borrow FE credit? The answer is yes, but you should only borrow the amount that is really necessary to be able to meet the periodic interest payments on time as stated in the contract.
Because just delaying one day, the amount of interest you have to pay will be multiplied many times. At that time, the time to complete the loan will be much longer.
Make a plan to pay off your debt
Whether you take out a loan from FE credit, or get a loan from a bank or some other loan location, it is important to have a detailed interest payment plan. Avoid interest payments overdue and interest rates being raised.
Keep payment receipts
After making the FE credit loan interest payment or loan payment, you all need to keep the receipt as a basis for information verification when necessary.
Conclusion
Thus, we have helped you better understand the problem Should I borrow FE Credit?. In general, FE credit is currently the most reputable financial service provider for those who are having problems with capital. You should consider carefully before making a loan so that there is no bad credit balance.
The article was edited by: Banktop.vn
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