Some Vietnam Banks Asks Borrowers to Deposit Margins for Loans

Some commercial banks have requested borrowers to deposit 5% of total loan value into the latter’s ATM card accounts with a ban on withdrawal, the local newswire reported, citing sources close to the matter.

Vietnam Bank for Social Policies (VBSP) and Vietnam Bank for Agriculture and Rural Development (Agribank) were named among those lenders.

In details, loan seekers need to deposit back VND500,000 to obtain a loan worth VND10-30 million, a source said, adding that borrowers will never earn interest, but are asked to pay interest rate for margin deposits.

The two banks have declined the blame, the State Bank of Vietnam (SBV) said after asking for inspection and explanation from the two lenders.

The central bank emphasized that the activity did not comply with regulations of the central bank and suggested local people to provide specific information for examination.

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