Improving car loan service for individual customers at Bac A Commercial Joint Stock Bank (Bac A Bank)

Bac A Commercial Joint Stock Bank

“Improving car loan service for individual customers
at Bac A
Commercial Joint Stock Bank (Bac A Bank) - Thang
Long Branch”

Name of student:

Class:


1

PART 1: INTRODUCTION OF THE
REPORT

2

PART 2: OVERVIEW OF THE BAC A COMMERCIAL JOINT STOCK
BANK – BAC A BANK

3

PART 3: INTERNSHIP IMPLEMENTATION AT THANG LONG
BRANCH – BAC A BANK

4

PART 4: RESEARCH AND ANALYSIS IN THE INTERNSHIP

5

PART 5: PROJECT ASSESSMENT

2


1

PART 1:
INTRODUCTION
OF THE REPORT

3


I. Report reasons.
II. Report
objectives.

III. Scope of
research.
IV. Research
methods.


PART 2:
OVERVIEW OF
THE BAC A
COMMERCIAL

JOINT STOCK
BANK
(BAC A BANK)
5


I. Overview of the Bac A Commercial Joint Stock Bank –
Bac A Bank
Transaction name (Vietnamese name): Ngân hàng Thương mại Cổ
phần Bắc Á
English name: Bac A Commercial Joint Stock Bank
Abbreviation name: BAC A BANK
Authorized capital (2021): 7.531.000.000.000 VND (Seven thousand
five
hundred thirty one billion Vietnamese Dong)
Head Office:
Nghe An

No. 117 Quang Trung, Quang Trung Ward, City. Vinh,

Phone: (84-238) 3844277
3841757
Website:

Số fax: (84-238)

6


Vision, mission and core values of Bac A

Bank
Vision

Mission

With superior thinking,
pioneering,
professionalism, and
continuous improvement,
for the true happiness of
each person, we are
determined to get rich
righteously, bringing
sustainable value to
investors and happiness
for the community.

“Bac A Bank advises
and serves a generation
of businesses with
sustainable
development, creating
core values, bringing
true value to the
community, and being
environmentally
friendly.”

Core values
◉ Pioneers

◉ Professionally
◉ Reliable
◉ Continuous
improvement
◉ For true happiness

7


II. Introduction of car loan
products for individual
customers.

2.1. Definition.
2.2. Product details.

8


2.2.1. The car loan process for individual
customers.

Finding
customers

Introduction of
loan products

Collect customer
profiles

Analyze
customer
profiles

9


2.2.1. The car loan process for individual
customers.

Loan approval

Sign the
contract

Disbursement

Loan tracking
and debt
collection

10


2.2.2. Car loan service at Thang Long branch Bac A Bank
◉ Target customers: Vietnamese, aged 18 years or older.
◉ Limit up to 90% of total vehicle value.
◉ Suitable loan interest rate from 6.7% - 9.89%, depends on credit
rating and long or short term loan period.

◉ In addition, customers can get a credit card with a free annual fee for
the first year. Customers can use it to purchase car insurance,
accessories, and services.
11


Loan conditions for individual
customers:
◉

The customer must meet the loan conditions as prescribed in the Lending
Regulations, the Credit Guarantee Policy, and the Loan Process for the current
Customer and amendments, supplements, and replacement documents (if any) of Bac
A Bank.

◉

Vietnamese individual/household customers.

◉

The customer's age at the time of loan termination is not more than 70 years old.

◉

Customers have household registration or registered temporary residence for more
than 6 months.

◉

A foreign individual who is living and working in Vietnam for a long time.

◉

Having a source of income and sufficient proof of income to ensure debt repayment.

◉

Have collateral for the loan. Collateral is movable property: means of transport (for
example, a car the borrower can buy as collateral). Real estate and valuable papers.

◉

Customers have had no overdue debt over 30 days or more in the last 12 months.

◉

Customers with an internal credit rating of BB or higher.

12


Registration Profile
◉Loan application.
◉Identity card / passport and permanent residence / temporary residence
book.
◉Certificate of marital status.
◉Vehicle-related documents: Purchase contract, invoice, etc.
◉Documents proving the ability to repay the debt: Labor contract,
timesheet, payroll,...

13


PART 3: INTERNSHIP
IMPLEMENTATION AT
THANG LONG BRANCH –
BAC A BANK

14


I. Overview of Thang Long Branch – Bac A
Bank.

Bac A Commercial Joint
Activities of Thang LongCurrently, Thang Long
Stock Bank - Thang
branch: Account - Branch has 1 branch
Long Branch was
Deposit, Credit - Loan,office and 5 transaction
established on July 13,
Savings, and Insurance.
offices
2005

15


II. Organization structure at Thang Long
Branch.

Board of
manager

Business
Departmen
t

Appraisal
room

Customer
Service
Departme
nt

General
accountin
g
departme
nt

Treasury
Departme

Transactio
n offices

nt

16

2.2 Some business
cases

Case no. 1 (Successed)

◉

Customer Code: 517095***

◉

Name: Dao Sy Thuy

◉

Date of birth: 29/04/0974

◉

ID number: 0010740065**

◉

Career: Freelance

◉

Permanent Address: Tan Uoc, Thanh Oai, Hanoi

◉

Phone: 0904.215.0**

◉

Marital status: Married

◉

Monthly

income:

30.000.000

VND/month

He is in need of additional capital to buy a 01 SUZUKI XL7 car worth 564.000.000 VND.
He needs to borrow money from the bank to be 400.000.000 VND within 60 months,
accounting for 70.93% of the total capital needed.
According to CIC's test (Credit Information Center), have had no bad debts for 3
consecutive years, have an AA credit rating, and meet all requirements according to loan
regulations capital at Bac A Bank. Therefore, the loan is approved and disburesd according
to the correct process.

17

2.2 Some business
cases

Case no. 2 (Successed)

◉

Customer Code: 17002***

◉

Name: Nguyen Thi Nhan

◉

Date of Birth: 28/07/1975

◉

ID number: 0130275**

◉

Permanent Address: Kim Lien dormitory
area, Kim Lien ward, Dong Da district,
Hanoi.

◉

Monthly income: 22.440.000

VND/month

◉

Career: Head of Accounting Department
at Hoang Anh Construction Co., Ltd

◉

Marital status: Married

◉

Phone: 0982.531.8**

We contacted Ms. Nhan through the showroom's introduction. She wants to buy a
Hyundai Creta car worth 620.000.000 VND. Own capital is 120.000.000 VND, so she
wants to borrow 80% of the car value in 1 year with collateral of 1 apartment in Kim Lien.
After verifying the application, Ms. Nhan's file was by the regulations and fully met
the loan conditions at the bank, so the loan was approved and disbursed according to the

18


Case no. 3 (Failed – Customer income is not enough to pay
interest)

◉

Customer Code: 11062***

◉

Name: Tran An Phuong

◉

Date of birth: 27/08/1996

◉

ID number: 005396006**

◉

Phone: 0962.942.7**

◉

Permanent Address: Vinh Tuy Ward,
Hai Ba Trung District, Hanoi.

◉

Monthly income: 7.800.000
VND/month

◉

Career: Cashier at Happy furniture

Co., Ltd

◉

Marital status: Single

She wants to buy a Toyota Wigo with a value of 360.000.000 VND. With a loan demand of 100% of
the car value within 3 years.
Reason for not disbursing: According to regulations and conditions for loans at Bac A Bank, she is
not eligible because she does not have a stable income. After balancing her finances, and her monthly
expenses, this cannot guarantee that she can afford to pay monthly interest on the loan at Bac
A Bank. She doesn't have a house. She doesn't have any savings account as collateral. Due to the low
ability of this customer to repay the loan, the loan was not approved and disbursed.

19


III. Analysis of loan service results of Thang
Long Branch.
2019

Target
Total

loans

2021

Billion/VND

%

Billion/VND

%

Billion/VND

%

825

100

980

100

848

100

138

16.72

297

30.3

172

20.3

of

individual
customers
Total loan of car
loan service

2020

In 2021, although it has completed development, it still lags behind 2020, with outstanding loans to
individual customers only 848 billion dongs, down 13.5% compared to the previous year. In 2021,
there are also common difficulties due to the epidemic, so the car loan segment has not yet had
a certain breakthrough.

20


PART 4: RESEARCH AND
ANALYSIS IN THE
INTERNSHIP
I. Primary data analysis
II. Competitor analysis
III. SWOT
IV. Recommendations
21

I. Primary data
analysis.
Direct
survey

Method
Indirect
survey
22


1.3 Research results.
a. About gender and age.
Customer's Age

15.88%
19.48%

4.90%

25.57%

34.17%

Gender
<= 20
21 - 30
31 - 40
41 - 50

> 50

46.30
%

53.70
%

Male
Female

Through the chart, we can see that the age group is mainly from 21 to
30

years

old

is the age when they do not have a stable economy to be able to buy a car
without a loan, so this age often tends to tend to use loan services at
banks, so the loan rate here is also higher than that of other age groups.
And mainly in Bac A Bank, the borrower is male.


b. About monthly income and
career.
Career

Monthly income
22.0% 6.1%

41.5%

30.5%

< 5 million VND
From 5 - 10 millon
VND
From 10 - 20
million VND
> 20 million VND

Student

6.1

Retire

9.8

Workers, farmers

15.9

Freelance business

31.7

Office staf

36.6
0

◉

5

10 15 20 25 30 35 40

Because customers with income from 10 to 20 million VND are customers with stable income
sources and have higher debt repayment ability than other groups, it has a high borrowing rate.
24


c. The latest time to use the product or service, and the price of the car that the
customer wants to buy.
Service usage time
< 1 year

1 - 3 years

28.00%

36.00%

> 3 years

36.00%

Car price

< 1 billion VND
> 2 billion VND

26.8%

1 -2 billion VND

32.9%

40.2%

According to the survey, the results show that Bac A Bank can maintain the number of
customers in the past 3 years with the rate of using auto loan products for individual
customers being 36%
25