17/6/2025

5 Common Misconceptions About Unsecured Loans You Should Avoid

Considering an unsecured loan but overwhelmed by conflicting information such as "sky-high interest rates", "complicated procedures", or "only for high-income earners"? Let’s separate fact from fiction.

Shinhan Finance clarifies the five most common misconceptions to help you confidently access a fast, secure, and collateral-free financial solution.

5 Hiểu Lầm Phổ Biến Về Vay Tín Chấp Mà Bạn Cần Tránh

1. “Unsecured Loans Have Much Higher Interest Rates Than Secured Loans” – Not Entirely True

Reality:

While unsecured loans typically carry higher interest rates due to the absence of collateral, the final rate is assessed based on your credit profile and financial capability.
At Shinhan Finance, interest rates are transparently disclosed upfront—no hidden fees or vague conditions.
For example, on a 100 million VND loan over 12 months, the interest difference between a good and average credit profile is typically only 1–2 million VND per year.

This misconception leads many to turn to unregulated lending sources, such as loan sharks, with interest rates as high as 60–100% per year—posing severe financial and legal risks.

2. “Unsecured Loan Applications Are Complicated and Time-Consuming” – No Longer True

Reality:
Shinhan Finance offers a fully digital application process—from submission and appraisal to e-contract signing and disbursement—all without leaving your home.

Required documents:

National ID (CCCD)
Latest 3-month salary statement
Employment contract or social insurance details via VssID app

4 simple steps:

1. Apply online via website/app or at Shinhan Finance partner locations
2. Application review and credit evaluation
3. E-contract signing
4. Disbursement within 48 hours after approval

Many of our customers receive funds within 1–2 working days from application.

3. “Only Those Earning Over 10 Million VND Monthly Are Eligible” – Not Accurate

Reality:
Shinhan Finance supports applicants with monthly income starting from 5 million VND, depending on occupation and residential area.

Basic eligibility criteria:

Vietnamese citizen, employed with a valid labor contract, and receiving salary via bank transfer
Aged 21–55 (female) or 21–58 (male)
Meets minimum credit evaluation requirements

Loan limits and interest rates are tailored to each customer’s financial capacity and credit history.

4. “Unsecured Online Loans Are Risky or Scam-Prone” – Only If You Choose the Wrong Lender

Reality:
Online lending is only risky when dealing with unlicensed or unverified entities that ask for upfront fees or deposits.

Why Shinhan Finance is trustworthy:

A licensed financial company by the State Bank of Vietnam
Official website with “.vn” domain and SSL security
Official mobile app available on App Store & Google Play ("Shinhan Finance")
No upfront fees or deposits required before disbursement

5. “Unsecured Loans Damage Your Credit Score” – Not If You Pay on Time

Reality:
Timely repayment actually enhances your credit score, reflecting positive financial behavior on the National Credit Information Center (CIC).

Common reasons for negative credit records:

Payments overdue by 30+ days
Taking out multiple loans simultaneously beyond repayment capacity

To maintain a healthy credit score:

Borrow within your means
Create a clear repayment plan
Prioritize on-time payments

Apply for an Unsecured Loan with Shinhan Finance – Fast, Transparent, Secure

Step 1: Visit www.shinhanfinance.com.vn to review loan terms and eligibility
Step 2: Prepare documents: National ID, salary slips, and labor contract/VssID info
Step 3: Apply online and sign your e-contract after approval
Step 4: Receive disbursement within 48 hours of approval