Nguyen Huy, a 23-year-old freelance designer in Ho Chi Minh City, needed a new computer for work costing nearly 30 million VND (approximately 1,280 USD) three months ago. Lacking the funds but needing the computer urgently, he opted for a cash loan through the SHBFinance app. The online application process required no collateral, offered same-day approval and disbursement, and involved monthly payments of around 2.7 million VND (approximately 115 USD). Huy said this solution allows him to pursue personal plans without excessive financial pressure.

Young people are increasingly using consumer loans for personal development. Ngoc Tram, a 26-year-old marketing professional in Hanoi, borrowed 15 million VND (approximately 640 USD) from SHBFinance for a six-month English course. Tram considers this a wise investment, as it led to a promotion and higher salary.

"I jokingly call it 'learn now, pay later'," she said. "Since I didn't have the money upfront, a consumer loan was the perfect fit. The monthly installments of 1.4 million VND (approximately 59 USD) over 12 months left me with enough for other expenses."

Young people are proactively choosing flexible loan options. Photo: SHBFinance

Young people are proactively choosing flexible loan options. Photo: SHBFinance

Huy and Tram’s cases are not unique. According to experts at SHBFinance, a licensed consumer finance company in Vietnam, three primary factors drive young people towards flexible financial solutions: First, many freelancers and entrepreneurs have unstable incomes, limited credit history, or lack collateral, hindering access to traditional loans. Second, younger generations view consumer loans as a practical tool, as long as repayments are manageable and aligned with clear goals. Third, young people prioritize self-investment. From work equipment to courses, they readily borrow to seize development opportunities and enhance their professional skills.

Along with this shift in consumer behavior, young people's approach to financial services is evolving. Both Huy and Tram emphasized "speed, simplicity, and convenience" as top priorities. They prefer mobile transactions over visiting branches, managing everything from applications and loan inquiries to repayment schedules and contracts through their devices.

A 2024 Cathay United Bank report confirms this trend. The under-35 demographic, especially Generation Z, constitutes a significant portion of digital financial service users, thanks to their tech-savviness and adaptable spending habits.

In response, financial institutions like SHBFinance are investing heavily in digital platforms and personalizing products based on consumer behavior to reach younger customers. SHBFinance offers 24/7 support and a fully digitized experience: from eKYC and contract signing to loan inquiries and repayment reminders via their app.

Customers applying for and receiving loans from SHBFinance through Zalopay. Photo: SHBFinance

Customers applying for and receiving loans from SHBFinance through Zalopay. Photo: SHBFinance

SHBFinance recently launched preferential loan packages for customers with good credit histories, stable incomes, or consistent on-time payments. These offer interest rates from 1.37% per month, a maximum limit of 100 million VND (approximately 4,260 USD), simplified procedures, and quick disbursement. SHBFinance states this policy aims to save borrowers money and encourage responsible financial behavior among young people.

Beyond lending, SHBFinance provides additional features for young users, including loan insurance, repayment notifications and reminders via the app, and monthly financial planning tools.

According to a SHBFinance representative, the proportion of customers under 35 increased significantly in 2024, comprising the majority of first-time borrowers. The most common loan purposes are education, work equipment purchases, and essential consumer spending. With its flexible financial approach, SHBFinance aims to expand financial access to those without prior banking loan experience, particularly young people in both urban and rural areas.

Ms. Olena Khlon, General Director of SHBFinance, believes flexible finance is becoming the "new normal" in young people's spending habits.

"We hope that with the support of financial institutions like SHBFinance, consumer loans will no longer be a burden, but a tool that empowers the younger generation to live more proactively and confidently invest in themselves," she said.

Experts agree that flexible finance is a valuable tool if young people have a clear repayment plan and use loans for appropriate purposes. However, they stress the importance of assessing one's financial capacity and avoiding over-borrowing. To minimize risk, experts recommend borrowing no more than 30% of monthly income, prioritizing education, work, or skill development. Choosing reputable lenders with transparent processes is also crucial to mitigate the risk of bad debt.

Minh Dang