What is a Savings Passbook Collateral Loan? Process and Specific Procedures

Learn what a savings passbook collateral loan is, its detailed process, and procedures. It's a quick financial solution with preferential interest rates, helping you maximize the value of your assets.

In situations where you need urgent capital but don't want to withdraw your savings passbook, or don't have other suitable collateral, a savings passbook collateral loan is an effective, convenient, and easy financial solution. However, do you truly understand what this type of loan is, how it works, and what documents are needed? Below, VPBank will provide detailed information to help you grasp the necessary process and procedures

1. What is a Savings Passbook Collateral Loan?

A savings passbook collateral loan is a fairly common form of borrowing recently, in which the borrower uses their savings passbook as collateral to receive a sum of money from the bank. This is an ideal choice for those who need urgent funds but still want to maintain the benefits of their savings passbook.

This method is considered safe, fast, and efficient, especially suitable for customers with short-term financial needs.

2. Characteristics of a Savings Passbook Collateral Loan

 

Borrowing against a savings passbook as collateral is a lending method trusted by many. Here are the prominent and most distinctive characteristics of this loan type:

• Collateral: A savings passbook issued by a bank.

• Loan Limit: Flexible according to needs, but generally not exceeding the value of the savings passbook.

• Loan Term: Usually not exceeding 1 year.

• Interest Repayment Method: Banks typically apply two main methods:

  • Repay principal and interest at the end of the term.

  • Repay interest monthly, principal repaid periodically every 3, 6, or 12 months, depending on the regulations of each bank.

• Process and Procedures: Simple, fast, and promptly meets customer needs.

• Savings passbooks from other banks: Customers can use a savings passbook from another bank as collateral to borrow funds.

The loan process using a savings book is simple and quickly meets the customer’s needs.<button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Copy" aria-selected="false" data-testid="copy-turn-action-button" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Good response" aria-selected="false" data-testid="good-response-turn-action-button" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Bad response" aria-selected="false" data-testid="bad-response-turn-action-button" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Read aloud" aria-selected="false" data-testid="voice-play-turn-action-button" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Edit in canvas" aria-selected="false" data-state="closed"></button><button id="radix-«r6pg»" class="cursor-pointer text-token-text-secondary hover:bg-token-bg-secondary touch:px-2.5 h-[30px] rounded-md px-1.5" type="button" aria-haspopup="menu" aria-expanded="false" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Share" aria-selected="false" data-state="closed"></button>

 

 

3. Benefits of Savings Passbook Collateral Loans

Many people choose to mortgage their savings passbooks to borrow money because this method offers many outstanding advantages and benefits, such as:

• Preferential interest rates: This form typically comes with lower interest rates compared to unsecured loans, as it has collateral.

• High loan limit: The loan amount can be up to 90-95% of the savings passbook's value, meeting large financial needs without having to close the passbook prematurely.

• Simple, fast procedures: The loan process is easy and quickly processed because the savings passbook is clear and highly liquid collateral.

• Still earns interest from the savings passbook: During the loan period, customers continue to earn interest from their savings passbook as usual.

• Effective financial solution: A savings passbook collateral loan allows you to meet short-term financial needs without having to prematurely close your savings passbook.

After settling the loan, you can still receive interest from the savings book as usual.

 

4. Savings Passbook Collateral Loan Interest Rates at VPBank

VPBank's savings passbook collateral loan interest rates are considered attractive and competitive compared to other commercial joint-stock banks and credit institutions. Notably, VPBank's savings passbook collateral loan interest rates are also very easy to calculate with significant preferential rates.

Loan Interest Rate Formula:

Minimum Interest Rate Condition: The loan interest rate shall not be lower than the deposit interest rate for the same term + 0.5%/year.

The interest rate for loans secured by a savings book is considered attractive and competitive.<button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Copy" aria-selected="false" data-testid="copy-turn-action-button" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Good response" aria-selected="false" data-testid="good-response-turn-action-button" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Bad response" aria-selected="false" data-testid="bad-response-turn-action-button" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Read aloud" aria-selected="false" data-testid="voice-play-turn-action-button" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Edit in canvas" aria-selected="false" data-state="closed"></button><button id="radix-«r6g8»" class="cursor-pointer text-token-text-secondary hover:bg-token-bg-secondary touch:px-2.5 h-[30px] rounded-md px-1.5" type="button" aria-haspopup="menu" aria-expanded="false" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Share" aria-selected="false" data-state="closed"></button>

 

 

Basically, this interest rate is flexible based on factors such as:

• The loan amount.

• The market demand for credit at specific times.

• VPBank's interest rate policy.

• The customer's current credit score and financial capability.

Thanks to adjustments based on various factors, VPBank's loan interest rates may vary between customers and over time. This helps the bank provide suitable, optimal solutions for each specific financial need.

5. Regulations for Savings Passbook Collateral Loans at VPBank

VPBank always adheres to the credit regulations of the State Bank of Vietnam, ensuring strict yet flexible conditions for savings passbook collateral loans to provide optimal support to customers. Below is detailed information for customers who wish to borrow using their savings passbook:

5.1. Applicable Subjects

This loan is for customers who have collateral in the form of:

• Savings passbooks.

• Term deposits.

• Valuable papers (GTCG) issued by VPBank or reputable credit institutions such as the State Bank of Vietnam (NHNN), State Treasury, Government, and other commercial banks.

As long as you have a savings book, you can easily access and use this loan product.<button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Copy" aria-selected="false" data-testid="copy-turn-action-button" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Good response" aria-selected="false" data-testid="good-response-turn-action-button" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Bad response" aria-selected="false" data-testid="bad-response-turn-action-button" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Read aloud" aria-selected="false" data-testid="voice-play-turn-action-button" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Edit in canvas" aria-selected="false" data-state="closed"></button><button id="radix-«r6bl»" class="cursor-pointer text-token-text-secondary hover:bg-token-bg-secondary touch:px-2.5 h-[30px] rounded-md px-1.5" type="button" aria-haspopup="menu" aria-expanded="false" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Share" aria-selected="false" data-state="closed"></button>

 

 

5.2. Loan Application Documents

The application requires complete and clear documentation for easy appraisal by VPBank, including:

• Personal identification documents: ID card/Citizen Identity Card (CCCD)/Passport.

• Household registration book or temporary residence book.

• Documents proving the purpose of fund use.

• Savings passbook or valuable papers used as collateral.

Note: You need to provide accurate information in the required application. Transparency in the application helps increase credibility and ensures a quick approval process.

5.3. Loan Limit

The loan limit is flexible, ranging from VND 10 million to VND 3 billion, up to a maximum of 90% of the collateral value. Additionally, the bank also requires that the collateral value includes the principal and accrued interest (if any).

The credit limit of the product is flexible<button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Copy" aria-selected="false" data-testid="copy-turn-action-button" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Good response" aria-selected="false" data-testid="good-response-turn-action-button" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Bad response" aria-selected="false" data-testid="bad-response-turn-action-button" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Read aloud" aria-selected="false" data-testid="voice-play-turn-action-button" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Edit in canvas" aria-selected="false" data-state="closed"></button><button id="radix-«r674»" class="cursor-pointer text-token-text-secondary hover:bg-token-bg-secondary touch:px-2.5 h-[30px] rounded-md px-1.5" type="button" aria-haspopup="menu" aria-expanded="false" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Share" aria-selected="false" data-state="closed"></button>

5.4. Loan Term

The loan term is consistent with the term of the savings passbook collateral loan, usually from 1 to 12 months. Customers can choose a loan term that suits their personal financial plan.

5.5. Disbursement Time

VPBank stands out with its fast disbursement time: Just 1 minute after the appraisal and collateral procedures are completed. This is one of the leading banks in terms of disbursement speed today, so customers can be completely assured.

5.6. Loan Method

Customers can receive the loan directly at a VPBank transaction office or through the VPBank NEO digital banking application. Currently, the bank facilitates customers to choose the most flexible and convenient borrowing method.

With transparent policies, flexible limits, and fast processing times, VPBank is an ideal choice for those who need a savings passbook collateral loan.

6. Process and Procedures for VPBank Savings Passbook Collateral Loan

If you need urgent funds, you can absolutely get a savings passbook collateral loan with the following process and procedures:

6.1. Loan Application

To provide customers with greater convenience in pledge loan transactions using savings passbooks, VPBank offers two flexible borrowing methods: at the transaction counter and via the VPBank NEO application. Below are detailed instructions for each method:

6.1.1. Borrowing at the Transaction Counter

To minimize waiting time, customers can book an appointment in advance via VPBank's official website. The borrowing process at the counter is as follows:

• Step 1: Prepare all required documents and arrive at the transaction office at the scheduled time.

• Step 2: Meet with the consulting staff, present your documents, and complete all necessary procedures.

• Step 3: Receive the disbursed funds immediately after your application is approved.

Loan agreement along with detailed terms and conditions.<button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Copy" aria-selected="false" data-testid="copy-turn-action-button" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Good response" aria-selected="false" data-testid="good-response-turn-action-button" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Bad response" aria-selected="false" data-testid="bad-response-turn-action-button" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Read aloud" aria-selected="false" data-testid="voice-play-turn-action-button" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Edit in canvas" aria-selected="false" data-state="closed"></button><button id="radix-«r62j»" class="cursor-pointer text-token-text-secondary hover:bg-token-bg-secondary touch:px-2.5 h-[30px] rounded-md px-1.5" type="button" aria-haspopup="menu" aria-expanded="false" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Share" aria-selected="false" data-state="closed"></button>

 

 

• 6.1.2. Borrowing via VPBank NEO App

  Customers with a VPBank NEO account and a savings passbook issued by VPBank can apply for a loan online through the app. The steps are:

  • Step 1: Log in to the VPBank NEO app.

  • Step 2: Access the dashboard, select "Loans" -> "Pledge Loan with Savings Passbook."

  • Step 3: Register for the loan: Here, customers will need to select the asset type: Physical savings passbook or online deposit balance. Note: Each loan can be pledged with a maximum of 3 passbooks, only one type (physical or online) applies.

  • Step 4: Enter loan information:

    • Fill in details about the amount needed, loan term, disbursement account, repayment account, and purpose of fund use.

    • If using a physical passbook, you will need to go to a branch to submit the savings passbook as collateral.

  • Step 5: Confirm the loan contract: Review the loan contract directly on the app. After that, the customer needs to enter the OTP code sent to their phone or email to complete the confirmation.

  .

Loan agreement along with detailed terms and conditions.

 

6.2. Repayment and Loan Settlement

To repay and settle your savings passbook collateral loan at VPBank, you can choose one of two methods:

1. At VPBank transaction counter: Go directly to the nearest VPBank branch or transaction office to make the payment.

2. Via VPBank NEO app:

   • Step 1: Log in to the VPBank NEO app.

   • Step 2: Select "Loans" -> "Online Loan Settlement."

   • Step 3: Select the loan to settle and follow the instructions on the screen.

Note: If you used one savings passbook as collateral for multiple loans, please visit a VPBank branch directly for assistance with settlement.

7. Important Considerations When Borrowing Against a Savings Passbook

To increase your chances of approval and receive the highest possible loan limit for a savings passbook collateral loan at VPBank, you should keep the following points in mind:

• Maintain a good credit history: Avoid bad debts, as VPBank and most commercial joint-stock banks in Vietnam do not support credit for customers with bad debts.

• Use a VPBank savings passbook: Using a savings passbook issued by VPBank itself can allow you to borrow up to 90% of the passbook's value, optimizing your credit limit.

• Provide complete income verification documents: Labor contracts, pay stubs, salary slips, social insurance books, life insurance contracts, etc., are important documents proving your repayment ability and increasing trustworthiness during the appraisal process.

• Ensure consistent information across documents: All documents related to personal identification, income, and valuable papers (GTCG) need to have consistent owner information. This helps shorten appraisal time and minimizes requests for additional documents.

• Avoid bad debt or overdue debt, as banks often refuse to support customers with poor credit scores. Ensure timely repayment of previous loans to increase reliability.

• Using a savings passbook from the lending bank will help maximize the loan limit, typically from 90-95% of the passbook's value. If the savings passbook belongs to another bank, you need to verify its acceptability with the current bank.

• The loan term usually does not exceed the remaining term of the savings passbook. Choose a reasonable term to avoid financial pressure.

By adhering to the above considerations, you will increase your chances of quick loan approval and achieving your desired loan limit.

A savings book mortgage loan can offer a credit limit of up to 90–95% of the value of the savings book.<button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Copy" aria-selected="false" data-testid="copy-turn-action-button" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Good response" aria-selected="false" data-testid="good-response-turn-action-button" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Bad response" aria-selected="false" data-testid="bad-response-turn-action-button" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Read aloud" aria-selected="false" data-testid="voice-play-turn-action-button" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Edit in canvas" aria-selected="false" data-state="closed"></button><button id="radix-«r5pn»" class="cursor-pointer text-token-text-secondary hover:bg-token-bg-secondary touch:px-2.5 h-[30px] rounded-md px-1.5" type="button" aria-haspopup="menu" aria-expanded="false" data-state="closed"></button><button class="text-token-text-secondary hover:bg-token-bg-secondary rounded-lg" aria-label="Share" aria-selected="false" data-state="closed"></button>

 

 

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A savings book mortgage loan is a safe and quick option for those who need capital but still want to maintain the benefits of their savings. With simple processes and procedures, you can fully leverage this asset to meet your financial needs. For detailed consultation and the best support, please contact the hotline at 1900.54.54.15 or visit the official website at www.vpbank.com.vn!