8 Secrets for getting bank loans at preferential interest rates and quick disbursement

1. Understand the conditions for bank loans

Understanding loan conditions is an important step to ensure the loan process goes smoothly. According to regulations in Article 7 Circular 39/2016/TT-NHNN, business owners and business household owners need to meet the following general conditions:

• Age from 18 to 75 years old, with full civil capacity.
• Legal purpose of using capital.
• The plan for using capital is clear, transparent and feasible.
• Have the financial ability to repay both principal and interest on time.

In addition, depending on each customer, the bank will apply specific requirements as follows:

For businesses

• The loan representative needs to ensure full legal capacity and civil liability;
• Full legal documents, including: business registration license, company charter and related documents;
• Stable financial situation, shown through financial statements and detailed account statements;
• Reasonable loan purposes, such as paying operating costs, expanding production scale, investing in infrastructure, or importing raw materials;
• Business investment projects must be feasible and come with a clear debt repayment plan;
• The enterprise's collateral (for mortgage loans) must comply with the provisions of law.

For business households

Business households, according to Clause 1 Article 79 Decree 01/2021/ND-CP, is a type of business registered to be established by an individual or family members, responsible for all assets for business activities. The business owner can be an individual who registers himself or a person authorized by family members to act as a representative.

According to Article 7 Circular 39/2016/TT-NHNN, to get a bank loan, business households need to meet the following conditions:

• Civil act capacity: The individual business household owner must have full civil capacity, specifically:
  • Be 18 years old or older, have full civil capacity.
  • From 15 years old to under 18 years old, without loss or limitation of civil act capacity.
• Business activities: Belonging to professions in accordance with the provisions of law and the bank's lending policies.
• Legal documents: Have a Business Registration Certificate or equivalent documents.
• Loan purpose: In accordance with the provisions of law.
• Capital use plan: Feasible and approved by the bank.
• Financial ability: Make sure you have enough ability to repay debt, including principal and interest, within the commitment period.

2. Prepare complete loan documents

Preparing a complete and valid loan application not only helps the bank accurately assess the financial capacity of the business or business household but also shortens the approval time and increases the chance of approval. Below are the necessary documents that need to be provided:

3. Popular bank loan packages

Currently, banks offer many loan packages suitable for each purpose and customer. Among them, the three most popular types of loans include: Mortgage consumer loans, unsecured consumer loans and business loans.

Mortgage consumer loan

Mortgage consumer loans are a form of loan that allows customers to access enough capital to serve their consumption needs, provided that they have collateral.

Applicable subjects: All customers from 18 years old, fully meet legal regulations on loans, own collateral and have loan needs.

Advantage:

• High loan limit, depending on the value of the collateral;
• More preferential interest rates than unsecured loans;
• Long loan term helps customers have more time to stabilize their finances and increase their chances of paying debt on time.

With a variety of loan products on the market, SeAFlex - SeABank's consumer mortgage loan package is an outstanding choice with advantages such as:

• Loan amount is unlimited if the collateral is owned by the customer/customer's spouse alone;
• Maximum loan term up to 120 months;
• Flexible documents proving income.

Unsecured consumer loans

An unsecured consumer loan is a form of loan that helps customers use capital for a certain period of time, without requiring collateral. Instead, the bank will make a lending decision through verifying the customer's income and credit history.

Applicable subjects: All customers from 18 years old, meet legal regulations on loans, have loan needs but do not have collateral.

Advantage:

• No collateral is required, helping customers avoid the risk of losing assets if they cannot repay debt on time, while focusing on financial management;
• Quick disbursement process, helping customers access capital easily;
• Ability to grant high credit limits, based on customer credit history.

Currently, SeABank has been implementing many unsecured consumer loan packages, helping to fully satisfy customers' loan needs, specifically as follows:

• Diverse loan products such as Loans for Teachers, Civil Servants, and Public Employees; Overdraft loans without collateral; Women's Union Loans and Installment Loans;
• Loan limit up to 500 million VND;
• Flexible loan term up to 60 months;
• No early repayment fee.

Business loan

A business loan is a form of loan from a bank or financial institution to serve production and business activities. Thanks to that, customers can expand, develop or maintain their business.

Applicable subjects: All customers from 18 years old, meet legal regulations on loans, are self-employed individuals or business household owners, and have loan needs.

Advantage:

• Serving a variety of business needs such as loans to supplement production capital, investment in fixed assets, and project implementation.
• Accept a variety of collateral such as real estate, cars, and personal deposits.

With this type of loan, SeAbank is also providing the SeAPro business loan package, with attractive benefits such as:

• Maximum loan amount up to 100% of capital needs;
• Maximum loan installment period of 300 months;
• Maximum credit limit term is up to 36 months;
• Debt repayment methods are diverse according to business reality.

4. Forms of bank loans

No longer like before when customers had to go directly to the bank to borrow capital, now customers can choose between two main forms: direct loan and online loan.. While direct loans bring peace of mind, ensure safety and are suitable for customers who are not familiar with technology, online loans are a modern, convenient solution that saves time and effort.

Borrow capital directly from the bank

The following is the most specific and detailed loan process at the bank for customers' reference:

• Step 1: Go to the bank's branch or transaction office and request to register for a loan.
• Step 2: Provide documents according to instructions and complete forms provided by the bank.
• Step 3: Wait for the bank to receive, check and evaluate the loan application. If the application is approved, the bank will send a suitable credit proposal.
• Step 4: After the customer signs the contract, the bank disburses money according to the agreement. The amount will be transferred or received directly at the counter.

Loan online

If customers do not want to borrow directly at the branch, customers can consider borrowing online. The process includes the following steps:

• Step 1: Visit the bank's official website/application.
• Step 2: Fill out all information in the online forms as required.
• Step 3: Wait for the appraisal department to contact you to verify information and application status.
• Step 4: After approval, the bank notifies the results and disburses via bank transfer or according to the agreed method. Customers receive disbursement and complete payment obligations as stipulated in the contract.

5. Understand clearly interest rates and how loans are calculated

Bank loan interest rate is the cost that customers have to pay when borrowing money. Currently, bank loan interest rates often fluctuate from 5.99% to 24%/year, depending on the type of loan (mortgage loan, unsecured loan, installment loan, etc.) and each bank's policy.

The two most common ways to calculate bank loan interest rates are calculating the principal balance and calculating the decreasing balance, specifically as follows:

Calculated based on principal balance (fixed):

With this calculation, the interest rate is calculated based on the initial debt balance, the interest amount does not change throughout the loan term.

Formula to calculate bank loan interest based on initial debt balance:

For example, a customer borrows 100,000,000 VND for a period of 12 months with an interest rate of 12%/year calculated based on the principal balance. 

• Principal monthly payment: 100,000,000/12 = 8,333,333 VND.
• Monthly interest amount: 100,000,000 x 12%/12 = 1,000,000 VND.
• Total amount payable each month: 8,333,333 + 1,000,000 = 9,333,333 VND.

Calculated based on decreasing balance:

Unlike calculating the principal balance, interest based on the decreasing principal balance is calculated based on the remaining loan balance after each principal payment. Therefore, the amount of interest will not be fixed but will decrease over time.

Thus, the formula for calculating bank loan interest rates in this case is as follows:

• Monthly principal = Loan amount/Number of months borrowed.
• First month's interest = Loan amount x Monthly loan interest rate.
• Interest in the following months = Remaining principal x Loan interest rate.

For example, a customer borrows 100,000,000 VND for a period of 12 months with an interest rate of 12%/year calculated based on decreasing balance:

• Principal monthly payment: 100,000,000/12 = 8,333,333 VND.
• Monthly interest payment:
  • First month: 100,000,000 x 12%/12 = 1,000,000 VND.
  • Second month: (100,000,000 − 8,333,333) x 12%/12 = 916,666 VND.
  • 3rd month: (100,000,000 − 8,333,333 x 2) x 12%/12 = 833,333 VND. 
• Total amount payable each month
  • First month: 8,333,333 + 1,000,000 = 9,333,333 VND
  • 2nd month: 8,333,333 + 916,666 = 9,250,000 VND.
  • 3rd month: 8,333,333 + 833,333 = 9,166,666 VND.

The following months are calculated similarly to the bank loan interest calculation method mentioned above until the customer pays off the debt.

6. Understand the costs incurred when borrowing capital

When borrowing capital from a bank, in addition to interest rates, customers also have to face other additional costs, affecting the total cost of the loan. Understanding each type of fee will help customers make accurate and reasonable financial decisions.

Fee for appraisal of collateral value

Collateral valuation fee is the fee that the borrower needs to pay to the valuation unit to determine the value of the collateral, to ensure sufficient value for the loan. This fee applies when customers choose loan packages that require collateral.

The fee is usually calculated as a percentage (%) of the value of the collateral, approximately 0,11 - 0,45%, depending on the appraised property value.

Insurance fee

In the case of a property mortgage, the bank requires the borrower to buy property insurance to ensure the interests of both parties during the loan process. Property insurance premiums are calculated based on the value of the property, level of insurance and bank regulations. 

Prepayment fee

Early repayment fee is an additional fee that the borrower needs to pay if they want to settle the loan before the committed term. According to regulations in Clause 1 Article 14 Circular 39/2016/TT-NHNN, early repayment fees are applied according to the agreement between the bank and the borrower. Normally, the penalty fee for early repayment will range from 1-5%/year on the borrower's total prepayment.

Other fees

In addition to the main fees mentioned above, borrowers may have to pay other additional fees such as:

• Notarization fee for mortgage contract: Based on loan value, usually from 0,02 - 0,06% loan value.
• Guaranteed transaction registration fee: About 80,000 VND/file when registering the warranty for the first time and 30,000 - 60,000 VND/file for subsequent change registrations.

7. Notes to know when borrowing money from banks

Before deciding to borrow money from a bank, customers should clearly understand important factors to effectively manage their finances and minimize unwanted risks. Below are notes to help you borrow safely and optimize benefits from the loan.

• Determine appropriate loan needs:

Customers should evaluate their current financial situation, thereby determining a reasonable loan amount Avoid bad debt risks and reduce financial pressure. Besides, priority should be given to essential needs or profitable investments.

• Plan to use capital effectively

It is essential to develop a detailed plan for how to use the loan, focusing on goals that bring long-term value.. It is necessary to avoid wasteful expenditures and prepare reserve funds to compensate for asset losses, handle unexpected debts and protect capital from objective risks.

• Choose a reputable and suitable bank: 

Choosing a trustworthy bank helps you have a convenient and safe loan experience. Should tThe bank has stable loan interest rates, transparent terms and good service. In addition, you need to carefully research fees and compare loan products to choose the loan package that best suits your needs. 

8. SeABank loan with good interest rate, quick disbursement

Among banks and credit institutions in the market, SeABank stands out with diverse financial solutions, providing optimal support for businesses, especially micro-enterprises, with benefits such as:

• Loans with competitive interest rates, helping businesses save costs effectively and access capital promptly;
• Long, flexible loan terms, consistent with actual repayment sources, help reduce debt repayment pressure for customers;
• Simple procedures and documents, helping customers quickly complete the loan process.
• Loan packages are customized to business needs, supporting micro-enterprises to expand and develop their business.

Hopefully through this article, customers have a better understanding of the conditions, procedures, and forms bank loan, from there you can easily choose the plan that suits your financial needs. Don't forget to carefully review costs, interest rates and create a reasonable repayment plan to ensure the loan process is effective and safe.

If you are looking for a loan solution with preferential interest rates and quick disbursement process, SeABank is proud to be a reliable partner. Please visit the website now https://sme.seabank.com.vn/ or contact Hotline 1900.599.952 for the most detailed advice.