Shinhan Bank Vietnam has officially launched a smart consumer loan on the Zalo app.

Zalo users can now easily apply for consumer loans from Shinhan Bank at an interest rate between 1.33 per cent and 2.4 per cent per month, if they earn a monthly income of VND5 million ($215) paid into their bank account.

From now to June 30, the first 1,000 customers will be offered a preferential interest rate of only 1.33 per cent per month without any conditions.

Depending on the users’ income and granted credit line, the loan amount could be up to 12 times their income after tax, to a maximum of VND500 million ($21,500), with a loan term of up to 60 months.

Users can easily apply for these loans from Shinhan Bank on the Zalo app’s Zalo Bank. Zalo Bank offers built-in financial services, including small loans. Users need only select the Zalo Bank function and follow the instructions to obtain a loan.

The system then automatically assesses whether the user is qualified to apply for a loan on the basis of the information they provide. If the user qualifies, he or she will be directly connected to Shinhan Bank staff for specific instructions on the application process.

After receiving all documents from the applicant, the bank will process the application within three working days and the loan will be disbursed to the customer according to requirements and rules.

“As at May 2018, Zalo had 100 million users and we believe this is an effective channel to access customers,” said Mr. Shin Dong Min, CEO of Shinhan Bank in Vietnam. “Our service offered on the Zalo app helps customers more conveniently access Shinhan’s smart consumer loans. Through Zalo Bank, customers in need of loan within a credit line of VND500 million can apply for loans anytime, anywhere. The process is then done automatically, quickly, and accurately by the system.”

Shinhan Bank is the first bank in Vietnam to introduce smart consumer loans on the Zalo app. It previously also offered credit card application and issuance services on Zalo and received positive feedback from the market.