IMPROVING HOME LOAN SERVICES FOR INDIVUAL CUSTOMERS OF AGRIBANK, HA TAY BRANCH

Professional bachelor degree
in Finance-Banking-Insurance
(Customer relationships management)

WORK PLACEMENT REPORT

COMPANY: VIETNAM BANK FOR AGRICULTURE AND RURAL
DEVELOPMENT
“IMPROVING HOME LOAN SERVICES FOR INDIVUAL
CUSTOMERS OF AGRIBANK, HA TAY BRANCH”
Names of student: NGUYEN Thi Nguyet
University year:

2019 - 2021

Tutor at TMU: NGUYEN Minh Nhat Linh
Tutor at USTV: Marie-Josée Cambreling
Tutor at (Company): BUI Minh Ngoc

Hanoi - 2022


TABLE OF CONTENTS
TABLE OF CONTENTS .............................................................................................. i
LIST OF TABLES ........................................................................................................ ii
LIST OF FIGURES ...................................................................................................... ii
ACKNOWLEDGEMENT .......................................................................................... iii
INTRODUCTION ....................................................................................................... iv
PART 1: OVERVIEW OF AGRIBANK AND THE INTERNSHIP .......................1
I. Overview of Agribank...............................................................................................1
II. Agribank – Ha Tay branch ......................................................................................1

III. Introduction of my internship: ............................................................................2
PART 2: INTERNSHIP IMPLEMENTATION AT COMPANY ............................4
I. The internship position, responsibilities and tasks ................................................4
1. Department structure and internship position .......................................................4
2. Business procedure and work placement responsibilities .....................................4
3. Daily tasks ..................................................................................................................5
II. Some business cases...................................................................................................5
1. Case No1 – Failed ......................................................................................................5
2. Case No2 – Sucessed..................................................................................................6
3. Case No3 – Failed ......................................................................................................7
III. Service analysis .....................................................................................................8
1. Introducing the home loan package at Agribank - Ha Tay branch .....................8
2. Analysis of the current situation of home loan packages at Agribank Ha Tay
branch ...........................................................................................................................10
3. Customer research ...................................................................................................12
5. SWOT analysis ........................................................................................................19
IV. KPI and KPR .........................................................................................................20
1. Key performance Indicator – KPI .........................................................................20
2. Key performance results – KPR ............................................................................20
3. Host firm assessment and recommendation .........................................................20
PART 3: INTERSHIP ASSESSMENT .....................................................................23
1. The difficulties encountered ...................................................................................23
2. Internship gained ....................................................................................................23
CONCLUSION ............................................................................................................25
APPENDICES ..............................................................................................................26
i


LIST OF TABLES
Table 1 : Internship plan at Agribank – Ha Tay branch ..................................................3

Table 2: Daily tasks at Agribank – Ha Tay branch .........................................................5
Table 3: Information about case No1 ..............................................................................6
Table 4: Information about case No2 ..............................................................................7
Table 5: Information about case No3 ..............................................................................7
Table 6: Documents profile name .................................................................................10
Table 7: Current status of bank lending services (million VND)..................................10
Table 8: Current status of home loan services for individual customers of the bank
(million VND) ...............................................................................................................11
Table 9: Some indicators of home loans at 3 banks agribank, vietinbank, techcombank
(%)……….. ...................................................................................................................18
Table 10: SWOT - home loan at Agribank Ha Tay branch...........................................19

LIST OF FIGURES
Chart 1: Internship Office of Agribank - Ha Tay Branch ...............................................4
Figure 1: Percentage of age of people in need of a home loan (%) ..............................13
Figure 2: Percentage of monthly income of people who need a home loan (%) ..........13
Figure 3: Job percentage of homebuyers (%) ................................................................14
Figure 4: Percentage of age of people in need of a home loan (%) ..............................14
Figure 6: Percentage of tenors desired by homebuyers (%) ..........................................15
Figure 7: Percentage of monthly payments desired by homebuyers (%) ......................16
Figure 8: Percentage of the desired criteria of homebuyers choose (%) .......................17
Figure 9: Percentage of preferential loans that customers want (%) .............................17

ii


ACKNOWLEDGEMENT
After nearly 3 months of implementing the topic "Improving home loan services
for individual customers of Agribank, Ha Tay branch", I would like to express my
sincerest thanks to the units and individuals who have helped and encouraged.

First of all, I would like to thank De Toulon University and the International
Training Institute of the ThuongMai University have created a vibrant learning
environment, encouraging students to do academic research.
Especially, during the process of implementing the graduation thesis, I would
like to thank Dr. Nguyen Minh Nhat Linh. His companionship and guidance helped
me get the best research results.
Moreover, in order to have practical experience and close reality assessment, I
would like to thank the Board of Directors of Bank for Agriculture and Rural
Development Ha Tay branch for creating maximum conditions and supporting
children during research.

iii


INTRODUCTION
Credit activities are one of the main roles of a commercial bank and Credit is
always the leading activity in business indicators and also the most profitable activity
for the Bank. Essential needs such as eating well, wearing warm clothes, people's
needs are thought of as the comfort of houses, means of transportation, household
appliances, studying or studying abroad, etc. People care a lot. As a result, they
allowed themselves to spend more than their income, which led to a significant
increase in the demand for loans from individual customers. From these needs, a
market for personal loans has been created at banks. Grasping the trend of people's
needs as well as increasing competitiveness with other banks, Agribank Ha Tay branch
has been deploying a variety of personal credit products to meet the needs of
customers. individualized customer services, excelling in providing innovative
solutions to maximize customer needs. Along with the above reasons, during the
internship, I was supported and exposed to many different professions, but with the
credit operation taking place at Bank for Agriculture and Rural Development - Ha Tay
branch, I chose Topic “Improving home loan services for individual customers of

Agribank, Ha Tay branch” for this internship report.

iv


PART 1: OVERVIEW OF AGRIBANK AND THE INTERNSHIP
I.Overview of Agribank
 Name, slogan: Vietnam Bank for Agriculture and Rural Development “Bringing prosperity to customers”
 Location: No.2 Lang Ha Street, Thanh Cong Ward, Ba Dinh District, Hanoi
 Legal status: Active (has tax registration certificate)
 Geographical development: Agribank is a bank with a nationwide network of
operations, especially in remote, border and island areas.
 Number of employees: About 40000 officers
 Date of creation: 26/03/1988
 Activity :
- Range of products: Deposit, Loans, Cards, Payment and Remittances,
Electronic banking,...
- As one of the state-owned commercial banks that plays a key role in the
banking system, Agribank has always promoted its pioneering role in leading the
system of credit institutions to seriously and effectively enforce policies. national
currency and the Party's and State's policies on currency and banking, especially credit
policies for agricultural and rural development.
II.Agribank – Ha Tay branch
 Location: Lot CC-02, Mo Lao Urban Area, Mo Lao Ward, Ha Dong District,
Hanoi
 Number of employees:
 Date of creation: 1996
 Activity : As a large branch of Agribank, Agribank Ha Tay has always been
one of the leading branches in efficiency as well as contributing to the overall
development of the whole bank. Agribank Ha Tay is effectively implementing 07

policy credit programs (Lending according to credit policies for agricultural and rural
development; lending to households and individuals through the loan group/affiliated
group); Loans according to supportive policies to reduce losses in agriculture; Loans
for cattle and poultry; Loans for coffee replanting; Loans for fisheries development
policies; Preferential credits for “Clean agriculture”) and 02 National Target Programs
(Building New Rural Areas, Sustainable Poverty Reduction). In addition, the branch
1


also provides many services for corporate customers such as guarantee, international
payment, etc.
III.

Introduction of my internship:

 The reason to choose the project: As one of the state-owned commercial
banks that plays an important role in the implementation of state policies, especially in
the field of rural development, Agribank always focuses on implementing individual
lending activities. and support credit for many policy beneficiaries. In recent years,
people's demand for home ownership has increased, leading to an increase in the
demand for personal loans for home purchases. Having the support from the bank will
help people, especially those with limited financial resources, have the opportunity to
own their own house. Therefore, Agribank has long had strategies to focus on
developing and increasing the supply of this potential service. That is why the author
has chosen the topic "Improving home loan services for individual customers of
Agribank, Ha Tay branch" to evaluate the performance of the branch's home loan
service, thereby making comments based on analysis as well as recommendations and
solutions to help the branch's home loan activities expand and develop, both in scale
and efficiency.
 Internship plan:

Date

Task / Mission

Outcome

From: 1st March 2022

Task 1: Learning the

Knowing about the

To: 15th March 2022

home loan procedure at

system and structure of

Agribank – Ha Tay

departments of AGB

Branch

Understand the home
loan process and
procedures of Agribank
– Ha Tay Branch

From: 16th March 2022

Task 2: Perform

Assisting bank staff

To: 30th March 2022

assigned tasks atthe

inhome loan work

branch
From: 31st March 2022

Task 3: Supporting bank

Mastering the lending

To: 15th April 2022

staff to dosome home

process, procedures and

loan cases

conditions through
2

practical work
From: 16th April 2022

Task 4: Conducting a

Collecting data on

To: 28th April 2022

survey on homeloan

needs,
financial conditions, ...
of customers for analysis
and evaluation.

From: 3rd May 2022

Task 5: Assessing and

Assessing the current

To: 20th May 2022

recommending solutions

situation and

for home loanactivities

recommending some
solutions to improve the
quality of home loans

From: 21st May 2022

Task 6: Completing the

To: 27st May 2022

essay

Table 1 : Internship plan at Agribank – Ha Tay branch

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PART 2: INTERNSHIP IMPLEMENTATION AT COMPANY
I. The internship position, responsibilities and tasks

1. Department structure and internship position
I am doing an internship in the production and personal customer rooms under
the supervision of Mr. Bui Minh Ngoc, my direct supervisor at the bank and holds the
position of department head. In the room where I interned, there were quite a few staff
members who were headed by the boss departments, deputy heads and then employees
like the diagram I have described below.
Board of Directors

Customer
Service

Department

Business
Customers
Department

Individual
Customers
Department

Operation
Department

Chart 1: Internship Office of Agribank - Ha Tay Branch
2. Business procedure and work placement responsibilities
During my internship, I was assigned to do basic banking jobs. Thanks to that, I
have a better understanding of the position of a loan consultant. At the same time,
know the working process and get acquainted with the professional working
environment of the bank. The things I have to do most often are:
 Have a meeting with the department about the working plan for the week.
 Read the documents, ask the instructor necessary things about the internship
 Support and help other colleagues do documentary tasks such as photocopy
documents, arrange records or record meeting reports
 Support to answer questions from customers in person or via the phone
 Meet customers with bank staffs to introduce products or make survey about
customers' loan conditions

4

3. Daily tasks
8 am - 11.30 am

Day/Time
Monday

Meeting, planning the week and getting the job

Tuesday

Calling the customers accorfing to the data

Wednesday

Read documents and complete tasks: assistance in keeping
records, photocopying documents...

Thursday

Meet customers with bank staff and introduce products to the
customers
Table 2: Daily tasks at Agribank – Ha Tay branch

The table above should represent the majority of my typical working day. During
my internship at the bank, however, it was not fixed.
• Read and completely comprehend all papers pertaining to banks, as well as the
legal policies of the State Bank of Vietnam on loan products.
• Contacting consumers who require financial assistance based on information
provided by the bank.
• Actively discuss questions with the instructor at the bank.

II. Some business cases

1. Case No1 – Failed
Name - Age - Gender - Marital

Nguyen Linh Chi - 25 years old - Female -

status

Single

Job - Working place

Online business - Freelance location

Monthly income

20 - 25 million VNĐ

The financial position of customer

Ms. Chi is sharing capital with a friend to
open a shop selling goods on social networks,
personal income from 20-25 million/month.
And Ms. Chi has a savings of 300 million in
the bank. She wants to borrow money to buy a
Hoang Huy apartment for 3.5 billion and
wants to borrow 70% of the apartment's value,
to be paid in 15 years.

The customer risk

Income from online sale on social network ->
unstable, her bank saving is also quite small
5


compared to the loan -> high risk
Negotiations and result

Ms.Chi is not eligible because she does not
have a stable income. The monthly income is
20-25 million VND/month, if not including
personal expenses and 300 million savings,
this revenue comes from an online business
that does not guarantee stability and longterm. . This cannot guarantee that Ms. Khai
can afford to pay the monthly interest on the
loan. I and the banker asked Ms. Chi if she
had any more assets to prove his income and
she did not have any. Therefore, the
possibility of this customer to repay is low,
without any collateral, the loan was not
approved.
Table 3: Information about case No1

2. Case No2 – Sucessed
Name - Age - Gender - Marital

Tran Van Khai - 42 years olds - Male - Single

Status
Job - Working place
Monthly income
The financial position of customer

Director – BEATVN Company
50 - 60 million VND
Mr. Khai has a monthly income of about 50 60 million VND and has a savings of 1 billion
VND and the same assets such as a car and a
house worth 2 billion VND. Mr. Khai wants
to borrow money from a bank to buy an
apartment in Vinhomes Ocean Park worth 8
billion, borrow 70% of the value of the
apartment and pay it back in 20 years.

The customer risk

Customers with high and stable income, have
bank savings and assets to prove their
financial ability -> good debt repayment
6


ability, suitable for loan.
Negotiations and result

Mr. Khai has good finances, stable income,
has a savings book and own assets, so he can
afford to pay good debts => eligible for loans.

Table 4: Information about case No2
3. Case No3 – Failed
Name - Age - Gender - Marital
Status

- Pham The Hung - 34 years old - Male - Married
- Nguyen Mai Anh - 32 years old - Female Married

Job - Working place

- Doctor - Bach Mai hospital
- Teacher - Dong Da high school

Monthly income

- 28 - 30 million VND
- 20 - 23 million VND
=> Total: About 50 million VND

The financial position of customer

They are a couple with a 6 months old baby.
Their total monthly income is about VND 50
million along with a savings of VND 250 million.
They want to buy a house 5 billion, borrow 70%
of the value of the house and pay it back within
20 years

The customer risk

Cause customers have their children, so there's a
lot of expenses -> the amount of 50M each month
will be affected -> the value of the loan and the
current payable is quite risk compared to their
saving and ability

Negotiations and result

They have a good income, but still have small
children, so they need to spend a lot and save a
little bit compared to the loan and have no
collateral => Refuse to lend and recommend to
buy another house of low value more and
further support

Table 5: Information about case No3
7


III. Service analysis

1. Introducing the home loan package at Agribank - Ha Tay branch
 Objects: Individual customers
 Characteristics:
- Loan term: 15 years
- Loan type: VND
- Lending rates:
+ Medium-term loans: up to 75% of total capital needs
+ Long-term loans: up to 70% of total capital needs
- Loan conditions:

+ Customers have civil legal capacity, civil act capacity according to regulations
+ Need to borrow capital to use it for lawful purposes, not subject to being
banned from lending as prescribed by law or the State Bank.
+ Have a feasible plan to use capital
+ Having the financial ability to repay the debt, shown by the following basic
criteria:
 Have a stable and legal source of income to repay the debt.
 There is no bad debt, debt has been dealt with risks at Agribank and other
credit institutions at the time of appraisal.
 Reciprocal capital participating in the capital use plan according to
regulations:
o Medium-term counterpart loan of at least 25%/total capital demand
o Long-term loan of at least 30% of the total capital demand
 Have collateral
- Loans profile:
NO.

DOCUMENTS PROFILE NAME

I

LEGAL RECORDS

1

ID card, passport

2

Household registration book/Temporary residence registration book

3

Residence card (temporary residence card) issued to foreigners
residing in Vietnam for a limited time, visa-free; Labor contract/Work
permit document for foreign customers (if any)
8


4

Power of attorney (if any)

5

Marriage registration / confirmation of marital status

II

ECONOMIC RECORDS

1

Documents proving the source of income to repay the debt (salary,
other income)

2

Documents proving the purpose of using capital (economic contract,
sale contract)

III

LOAN RECORDS

1

Client's related person declaration

2

Documents providing information about the borrower's CIC (printed
version)

3

The plan to use capital to serve life with collateral

4

Loan proposal report

5

Credit Council meeting minutes (if any)

6

Application for approval of loans beyond authority (if any)

7

Re-appraisal report (if any)

8

Notice of approval beyond authority (if any)

9

Notice of loan refusal (if any)

10

Credit agreement

11

Appendix of credit contract to receive loan and repayment period
(applicable to the case of one-time disbursement)

12

Disbursement proposal report cum debt receipt (applicable to the case
of disbursement of 02 or more times) (if any)

13

Payment authorization / Money receipt

14

Documents, invoices for service provision, receipts for goods import
and export, etc.

15

Delivery note of handover documents

16

Minutes of checking the use of Agribank loans at the place of lending

17

Income status report

18

The document amending and supplementing the credit contract (if
any)

9


19

Compliance report according to approval notice (if any)

IV

PROFILE OF LOAN SECURITY ASSETS

1

Collateral

2

Valuation report

3

Mortgage contracts

4

Mortgage registration form

5

Mortgage report

6

Receipt
Table 6: Documents profile name

2. Analysis of the current situation of home loan packages at Agribank Ha
Tay branch

 Lending service at Agribank – Ha Tay branch:
The credit policy of Agribank Ha Tay branch has always closely followed credit
activities in line with the bank's strategic orientation, which has been effective in
improving the credit granting process and asset appraisal at the branch. Currently,
Agribank Ha Tay branch carries out many different credit activities such as lending,
guaranteeing, discounting, etc., in which lending plays a key role. The capital use
situation of Agribank Ha Tay branch in the period of 2019 - 2021 has achieved the
following results:
Year

Total

Outstanding loans by

Outstanding balance by type of

loans

economic sectors

loan

Corporate

Outstanding

debt balance

loans for

Short - term

Long - term

production
households
2019

7094162

1837776

5256386

4890612

2203550

2020

7243472

2104541

5138931

5047300

2196172

2021

7690922

2433194

5257728

5530860

2160062

Table 7: Current status of bank lending services (million VND)

10


The outstanding balance of Agribank Ha Tay branch increased steadily in 3 years
from 2019 to 2021 (increasing from 7000 billion VND in 2019 to 7200 billion VND in
2020 and 7600 billion VND in 2021). During this period, the branch deployed many
credit packages, as well as expanded its scale and diversified products and services.
The short-term balance of the branch always accounts for the highest proportion in the
loan balance structure (approximately 70%), followed by the medium and long-term
balance (28-32% over the years). In the period of 2019 - 2021, there is a significant
difference between the proportion of loans to corporate customers and loans to
individual and household customers.
Loans to individual customers are stable in the period of 2019 - 2021, showing
the capacity of the sales team as well as the effectiveness of loan products. For the
corporate customer segment of Agribank Ha Tay branch, outstanding loans also
increased year by year.

Year

Customer

Contract

number

number

Sales

Interest

Period

Loan value
/ House
value

2019

88

88

157784

7.5-11%

2 - 15 years

205119

2020

91

91

196869

8.5 - 11.5%

3 - 15 years

255930

2021

141

141

155605

6.5 - 10.5 %

3 - 15 years

202287

Table 8: Current status of home loan services for individual customers of the
bank (million VND)
 Number of customers and contracts:
- The number of customers and housing loan contracts of aght has increased
rapidly year by year. In 2020, the total number of customers and contracts is 91, a
slight increase of 1.03% compared to the number of 88 contracts in 2019. For the
previous period, this indicator of the branch still has a steady increase, but not really
breakthrough. However, entering 2021, the branch focused on expanding to have a
strong increase, when the number of customers and contracts reached 141, an increase
of 1.54% compared to the same period last year.
- This result is achieved through the unremitting efforts of agrht's staffs and
officers in expanding the search and reaching customers. In the development strategy
of home loans, the branch aims to diversify loan objects and forms, but always ensure
the rigor in the appraisal stage to minimize risks for the bank.
11


 Loan sales:
- Revenue from home loans, although not accounting for a high proportion in the
branch's structure, has always received great attention in the development strategy.
- If we look at the data for the period of 2019-2021, we will see that there is a
quite clear contrast between the two indicators of the number of customers and
contracts compared to sales of home loans. 2021 will see an expansion of customer
search and access when this number increases from 91 to 141, however, home loan
sales despite a sharp increase from 157 billion in 2019 to 196 billion in 2020 (1.25% ),
but will decrease to the old level in 2021 (157 billion).
- The reason for this difference is because in the branch's strategy in 2021,
Agribank Ha Tay targets more diverse customers, with small-scale home loans (from

500-1.5 billion). in order to expand its market share as well as promote its ability to
support customers in accordance with the direction of the head office. Meanwhile, in
2020, the branch had a number of contracts with great value, helping to make a
breakthrough in sales.
 Interest rate and term:
- Agribank Ha Tay's lending interest rate is always at an average level, from 6.511% in the period of 2019-2021, which is a figure that is consistent with the current
market situation as well as the financial capacity of most banks. customers, helping
Agribank compete with other competitors.
- The term of the loan is mainly from 2-15 years, depending on the needs of the
customer as well as the conditions and characteristics of the loan.
3. Customer research
 Time to start the survey: from 10 - 4-2022 to 29-4-202
 Total of customers participating in the survey: 33 customers
 Research to sketch customer information (age, income, occupation) from
which to focus and expand to exploit potential audiences. In addition, determine
customer needs (loan period, loan amount, ..) to better understand how the customer's
loan needs are to improve products.
 Here are the charts that have been analyzed from the results obtained :

12


Figure 1: Percentage of age of people in need of a home loan (%)
The common loan age ranges from 26-30, 31-40 or between the ages of 18-25.
These are the ages who have earned a stable income, can afford it but have not been
able to accumulate the money to buy a house. At the same time, people from 26-40
years old are those with high demand for housing. The age of 40 and above can
usually buy a house after a period of accumulation without having to borrow

Figure 2: Percentage of monthly income of people who need a home loan (%)

The graph shows the income of people who want to borrow to buy a home. Most
people in need have an income of 21-35 million dong, 36-50 million dong, or less than
20 million dong. Because the above income is difficult to buy a house in a short time,
many people have a need to borrow to buy a house to live in or invest. People with
incomes over 50 million are often less inclined to borrow to buy a house because if
they save for a period of 1-3 years, they can buy a house without any costs and interest
rates.

13


Figure 3: Job percentage of homebuyers (%)
Most people who borrow money to buy a home are investors for profit or office
workers who buy houses to live in or invest because they have stable sources of
income and are able to repay the loan in the future. . Students accounted for 18.2%,
self-employed people accounted for 15.2% of loan demand to buy a house.

Figure 4: Percentage of age of people in need of a home loan (%)
The value of the houses that are borrowed to buy is mainly valued at 1.6-3.5
billion, especially at the average value of about 2 billion. This is the right value for
most middle-income people, starting to settle down at work, and it is reasonable to
own a house with all the most basic amenities for life.
The apartments below 1.5 billion or over 3.6 billion are less likely to account for
the third and fourth highest rates, these are houses for those with a modest income, or
much higher than the average. In addition, only a few people with big savings and
finances are interested in apartments priced above 5 billion, mainly good houses, or
buy for investment.
14

Those surveyed mainly want to borrow a loan with a value of 40-70%, at most
51-60%, it can be seen that this is also the loan threshold that many banks disburse to
customers after steps. financial appraisal, this number is not too high, nor too low,
suitable for both the needs of customers and the standards set by the bank. Meanwhile,
a quarter of the surveyed people

Figure 5: Percentage of home value that homebuyers need to borrow (%)
Those surveyed mainly want to borrow a loan with a value of 40-70%, at most
51-60%, it can be seen that this is also the loan threshold that many banks disburse to
customers after steps. financial appraisal, this number is not too high, nor too low,
suitable for both the needs of customers and the standards set by the bank. Meanwhile,
a quarter of the surveyed people expressed the need to borrow only 40-50%, which is
less than half the value of the house. These people have stable finances and want to
reduce their debt burdens. Only a few want to borrow up to 70%, but this is a difficult
number to achieve in reality.

Figure 6: Percentage of tenors desired by homebuyers (%)
15


Most people want a loan with a term of 11-15 years. Or 16-20 years. Because a
long-term loan will help ensure that the payment of that loan when the interest is paid
monthly or annually will be divided into less affecting the borrower's economy. With
loans for investment and buying a house to live in, it will be very beneficial for
borrowers. There are also some options for less than 10 years due to the need or the
ability to quickly repay the loan, and the interest rate of the short-term loan will also
be lower. Few people choose to borrow for a term of 21-25 years or more than 25
years because of the long term, or most people want to borrow short-term or mediumterm loans.

Figure 7: Percentage of monthly payments desired by homebuyers (%)

The total number of survey samples is 33. In which, most people choose part of
the principal that is deducated monthly during the loan period, the remaining principal
is paid at maturity to pay the loan. Along with that is to pay by increasing amounts. Or
pay monthly interest and pay it off at maturity. For a few, choose to pay by the method
of decreasing payment amount

16


Figure 8: Percentage of the desired criteria of homebuyers choose (%)
The two main reasons that borrowers pay attention to when deciding to borrow a
loan are interest rate and loan term, these are two important criteria that help assess
whether a loan is really suitable for the financial ability of the customer. or not (the
amount of interest to be paid and the repayment period), these are also the two most
important criteria not only in home loans but also in many other financial loans. Some
people are also interested in the disbursement time (the time it takes to receive the
bank loan as well as the processing procedures) and the maximum… (Many customers
want to see the maximum loan to assess the level of financial support. that they
receive)

Figure 9: Percentage of preferential loans that customers want (%)
In addition to the main loan, many customers are also interested in other
supporting products and services when making a loan, which are Loan insurance,
International credit card, Education loan discount, Reduced health insurance
17


premiums, Offer for personal loans and Reduced life insurance premiums.
4. Competitor analysis
I chose Vietinbank and Techcombank as two competitors to compare some

conditions and procedures for lending with Agribank because these are two strong
competitors in this field.
Agribank

Vietinbank

Techcombank

Term of loan

15 years

25 years

25 years

Loan limit

Up to 85% of

Up to 80% of

Up to 90 % of

financial need

financial need

financial need

Interest rate

7% / year

7.7% / year

7.49% / year

Loan

Short -term loans

Loan application

Processing time

arrangement

up to 5 days

processing time

when applying for a

time

Medium and long – here is a quite long

loan is only 3-4

term loans 10 days

working days

maximum
Table 9: Some indicators of home loans at 3 banks agribank, vietinbank,
techcombank (%)
 Loan term: Compared to Viettinbank and Techcombank, Agribank has a
shorter term (15 years compared to 25 years), most homebuyers want to borrow for a
long time to reduce debt repayment pressure, so this target is Agribank is somewhat
inferior compared to the other 2 banks in terms of attracting customers, but it helps the
bank quickly recover capital.
 Loan limit: Agribank's loan limit is 85%, neither too high nor too low (if
compared with the other 2 banks), this is a reasonable number, both suitable for
customers' needs and reasonable for customers operational strategy as well as risk
management and capital of the bank
 Interest rate: Agribank's interest rate is the lowest when compared to two
banks Viettinbank and Techcombank, even one of the banks with the lowest home
loan rate among banks in Vietnam, due to its oriented operation orientation. to the
support of people and households of Agribank. This is also an advantage to help attract
customers to buy houses of Agribank compared to other banks

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 Loan arrangement time: Techcombank has a faster loan arrangement time than
the other two banks. Agribank is more flexible when divided into 2 types: short term
and medium and long term. And viettinbank has the longest loan arrangement time.
The fastest possible loan arrangement will attract customers to choose Techcombank's
products

5. SWOT analysis
STRENGTHS

WEAKNESSES

- Simple procedure

- Customers are large but many are in the

- Large client file

countryside, so their income is still limited

- Professional staff

- The application of science and technology

- Compared with joint-stock

is not high in home loan products, leading

commercial banks, Ha Tay branch

to a situation where customers take a long

Agribank has a larger scale, abundant

time, and the cost of appraisal activities is

capital, and long-term business

large.

experience. customs and culture of the
Vietnamese people.
- The trend of socio-economic
integration and integration of the
banking and financial industry in
particular also creates opportunities
for the expansion of home loans of
the banking industry.
OPPORTUNITIES

THREATS

- Supported by the State

- Other competitors have similar products.

- Customers are more proactive and

- Although the number of customers has

have more conditions in accessing

increased, it is still modest compared to the

loans

potential of the branch

- + The economic development speed

- Dynamic young banks and better

is increasing, the demand for home

advertising policies

loans is increasing day by day,
creating many opportunitie

Table 10: SWOT - home loan at Agribank Ha Tay branch

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IV. KPI and KPR
1. Key performance Indicator – KPI
My goal is to talk to 5 customers to advise and provide information about home
loan packages at Agribank Ha Tay. Besides,

improving office skills such as

photocopying documents, typing, handling documents, meeting with customers,...
2. Key performance results – KPR
My goal is to meet 5 clients but I only meet 3 clients. I talked with them, advised
on Agribank's home loan service and learned from my experience to do better next
time.
I have learned about the loan process, the basic knowledge of the bank.

Understand the working environment, office skills, how to communicate with
customers and how to build co-worker relationships.
3. Host firm assessment and recommendation
Agribank is a large bank but they have not really focused on personal home
loan service, which is the biggest weakness and I have a few suggestions to develop
this service:
a. Improving customer satisfaction in home loan services for individual
customers:
 Agribank does not have its own strength in personal home loan services to
compete with other banks. Therefore, we need to focus on potential customers and
clients who have borrowed from our bank.
 Agribank Ha Tay needs to improve product quality in the direction of:
completing procedures, service provision process, ensuring transparent, simple but
strict procedures create comfort for businesses. Thanks to such improvement in
quality, it will create conditions for customers to save time and costs during the home
loan process. At the same time, the bank also saves time and effort to appraise
customers. This is a flexible and convenient model that should be promoted by the
branch not only in home loan activities, but also applied in many other activities.
 Finally, Agribank Ha Tay branch needs to continue to develop policies and
strategies to improve the quality of home loans for individual customers in each period
to evaluate the results as well as clearly see the goals and orientations. long-term work
to be done.
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