In today’s economic landscape, access to bank capital is essential for both individuals and businesses. However, many face difficulties when listed under bad debt, which significantly impacts future borrowing ability. Understanding what bad debt is, how to check it and exploring alternative loan options will help you overcome these financial obstacles. This article provides detailed, up-to-date information on bank bad debt, empowering you to seize financial opportunities effectively.
What is bank bad debt? Common bad debt classifications
Bad debt is defined by the State Bank of Vietnam as loans that are overdue by 90 days or more or are considered substandard with a high risk of default. According to the credit classification system, bad debt falls into five groups, with groups 3, 4 and 5 being classified as "bad debts":
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Group 3 – Substandard debt: Overdue from 91 to 180 days.
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Group 4 – Doubtful debt: Overdue from 181 to 360 days.
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Group 5 – Potential loss debt: Overdue for more than 360 days.
Being categorized in these groups makes it extremely difficult to access credit from banks and financial institutions. The impact can extend for years if not properly resolved. Common causes include job loss, business failures or missed payments on consumer loans. Notably, the State Bank of Vietnam reports that bad debt ratios have increased slightly in recent years, especially among consumer borrowers and unsecured loans from companies like FE Credit or Home Credit.
Importantly, bad debt does not last forever. After full repayment and waiting out the legal time frame (typically 1 - 5 years depending on the debt group), borrowers may have their bad debt status cleared on the CIC (Credit Information Center) system.
Can you still borrow from banks with bad debt?
While bad debt limits credit access, some banks and financial companies do offer loans to individuals with past credit issues - especially those in groups 1, 2 and occasionally group 3. Notable institutions include:
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VPBank: Offers consumer loans for low-level bad debt (group 2, group 3) depending on the applicants file.
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Home Credit, FE Credit: May approve applications for group 2 and certain group 3 debts with proof of repayment capability.
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ACB: Provides flexible support depending on the case.
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Vietnam Bank for Social Policies: Supports borrowers with a poor credit history if they qualify for government programs.
So, “Which banks lend to bad debt holders?” is no longer a distant question - what matters is a transparent loan file and clear repayment ability.
Group 3, 4, 5 bad debt: Can you still borrow?
Generally, banks reject loan applications for debts in group 3 and above. However, depending on the situation and whether the debt has been resolved, options still exist:
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Group 3 bad debt: Banks like VPBank or TPBank and finance companies such as FE Credit may consider the file.
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Bad debt at FE – Can I borrow from Agribank? Yes, if the debt has been fully repaid for at least 1 - 2 years and documents can be provided.
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Spouse has bad debt – Can I still borrow? If the loan is under your name and you can independently prove income, many banks will approve.
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Can I get a loan from the Social Policy Bank with bad debt? Possibly, if youre under special policy categories and have local government backing.
How to check your bank bad debt status – Simple & effective methods
Knowing your current credit status is the first step to avoiding bad debt surprises. Here’s how to check:
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Via CIC website: Register at https://cic.gov.vn to access your credit report.
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Bank apps: Some banks like VPBank, MSB, VIB, ACB, TPBank offer in-app CIC checks.
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At the bank counter: Provide your ID/CCCD and ask bank staff to assist with the inquiry.
Regularly checking your credit helps you stay on top of your financial health and make informed decisions.
Once bad debt is detected, the next step is to repay the loan as soon as possible and request confirmation of clearance from the bank. For large debts tied to secured assets, re-appraising the assets value may accelerate the resolution process.
Hoang Quan Appraisal – In-depth solutions for bank bad debt
When dealing with bad debts involving collateral assets, property valuation is crucial. Accurate valuation not only provides a legal basis for fair debt settlement but also helps banks minimize financial risk during recovery.
With over 23 years of experience and partnerships with major banks such as Agribank, BIDV, ACB, VIB, MSB, Hoang Quan Appraisal offers a professional, well-structured valuation process that ensures accurate and legally compliant appraisal reports with high practical value.
We appraise the market value of collateral-real estate, vehicles, machinery, stocks or businesses - while also evaluating recovery potential under different economic scenarios. This helps banks and creditors make safe and effective financial decisions.
When choosing Hoang Quan Appraisal, clients receive a full-service package: document intake, field surveys, report preparation, legal consultation and continuous support during debt resolution - all handled by licensed valuation experts with in-depth knowledge of finance and banking law.
Why choose Hoang Quan Appraisal for bad debt resolution?
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Accurate valuations reflecting true asset value in different economic conditions.
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Clear, legally grounded reports banks can rely on.
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Responsive consultation and fast quotation within 24 hours.
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Professional process with strict customer data confidentiality.
The longer bad debt lingers, the more complicated it becomes. Let Hoang Quan Appraisal help you untangle your financial knots with precise figures and tailored solutions. Contact us now for free consultation and fast quotes!
Hoang Quan Appraisal Co., Ltd.
Address: Hoang Quan Appraisal System
Phone: 0934.252.707
Email: contact@sunvalue.vn
Facebook: Hoang Quan Appraisal
Website: hqa.com.vn
Conclusion
As bank bad debt ratios remain high, determining the true value of collateral assets is a strategic move to reduce risk and recover finances. Hoang Quan Appraisal - with credibility, experience, and precision - is the top choice for banks, financial institutions and individuals tackling bad debt. Contact us today for professional support in checking and appraising bad debt effectively and reliably.
