Bankers look to refuel auto market

Hanoi (VNA) - Bankers are easing lending standards for car buyers, a move car traders said would help lift stagnant auto sales.

The ANZ has resumed its car loan package that allows car buyers to borrow up to 75
percent of the purchase price of a car.

The bank said approval time had been trimmed to 48 hours after the receipt of all
documents required to assess buyers. Loan terms may range from one to four years.

An Binh Bank has also restarted its car-loan package. This allows car buyers to
borrow up to 70 percent of the purchase price of a car with terms ranging from one
to three years.

However, would-be buyers must own real estate or have savings worth at least 100
million VND. The loan package is for cars under eight seats.

In recent months, most banks tightened their loan standards or pulled out of the
auto-loans market because of the general economic downturn.

The credit crunch and a slump in consumer confidence kept buyers away from car
showrooms.

"Customers had a lot of difficulties accessing lending services to buy cars, which
has had a huge impact on the downturn of the market," said Duong Kim Thoa , a
representative of Dong Hai Auto, one of the top auto dealers in Hanoi.

According to the Vietnam Automobile Manufacturers Association (VAMA), 17 leading
domestic auto makers sold 5,174 vehicles last month, down by 49 percent from the
same period last year.-Enditem