Important information to avoid black credit loan traps

Despite the introduction of many sanctions to handle black credit organizations, black credit activities are still strong, becoming a fear for many individuals and families who fall into their traps. When finances are depleted and people need to borrow money, many can inadvertently become victims of black credit loans – loans from organizations or individuals not authorized to operate in the financial or credit sector officially licensed by the state.

To help you avoid unnecessary risks and protect your personal finances, we provide useful information and advice in this article.

Stay Alert and Recognize Black Credit Loans

1. Identifying Characteristics of Black Credit Organizations

The most recognizable feature of black credit organizations is their “exorbitant interest rates.” Individuals and black credit organizations often lend at extremely high-interest rates, sometimes up to several hundred percent per year.

Loan documentation often lacks an official loan contract or, if one exists, it’s usually ambiguous about the rights and obligations of the parties.

The lender does not require much personal information or documents proving financial capability.

2. Operation Methods

Black credit organizations or individuals usually approach victims by distributing leaflets in public places or offering loans through apps and websites. They attract borrowers with easy loan conditions and quick disbursements. Borrowers are primarily low-income workers with limited legal knowledge.

Ways to avoid black credit loan traps

Always check and verify the information of the lender or lending organization. You can look for information about financial institutions on the internet.

Only Borrow from Licensed Financial Institutions

Only borrow from financial institutions licensed by the State Bank.

Understand all the terms and read the loan contract carefully, especially the terms regarding interest rates, penalty fees, and handling procedures in case you cannot repay the debt.

Be cautious and protect personal information when borrowing

Do not provide your ID card, bank account information, or other personal details to unknown individuals or organizations without thorough research.

Keep safe for your personal assets and do not mortgage your assets without the consent of the parties involved in a clear loan agreement.

Be aware of quick loan advertisements, because most advertisements emphasizing quick loans without verification are unsafe and could be the first sign of black credit.

Choose safe, licensed financial companies

To avoid falling into black credit traps, choosing safe and legal borrowing methods is essential. You can look for financial companies licensed by the state with clear documentation procedures.

One of the reputable companies in the financial sector with 100% foreign ownership is Shinhan Vietnam Finance Company (Shinhan Finance), a subsidiary of Shinhan Card Corporation (South Korea). With a solid combination of technology through the iShinhan app, THE FIRST credit card, and Shinhan Card's outstanding financial products, coupled with over 17 years of experience developing the consumer lending market, Shinhan Finance is committed to becoming the best financial support company for customers in Vietnam.

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The fastest channels to register for a loan:

• Hotline: 1900 54 54 49 (press 2 – Loan consultation)
• Website Shinhan Finance
• iShinhan financial management application
• Fanpage Shinhan Finance
• Directly at Shinhan Finance transaction counters: See the address details of Shinhan Finance branches.

Sincerely,

Shinhan Finance