Surge in ultrafast loan apps with interest rates above 2,000% per year

Online loan apps are advertising aggressively across social networks and digital platforms, promising “ultra-fast disbursement” and “no income verification.” Authorities and banks have issued warnings that behind these claims are risks including exorbitant interest rates, potential fraud, and threats to personal data security.

Rise of ultrafast loan apps

Loan advertisements have increasingly appeared on social networks and digital platforms, using phrases such as “borrow fast in 5 minutes,” “no proof of income,” and “instant disbursement.” Promotional materials often present loan comparisons and quick processing timelines, with credit limits ranging from a few million to tens of millions of dong and processing times of about 10–20 minutes.

Some apps market low rates or promotional offers, including “0% for the first time” or rates as low as 1–1.5% per month, aiming to attract borrowers who need funds urgently.

Borrower experiences highlight data and repayment pressure

PV Tien Phong said he installed the “dong247” app after seeing frequent social-media ads. He reported that initial access was quick and straightforward, but disbursement required multiple steps involving sensitive information.

According to his account, the app asked him to photograph both sides of his citizen ID and then provide additional images holding the ID. In the final step, the app requested full access to the phone’s contacts, raising concerns about personal data security.

After completing the steps, PV Tien Phong received an initial loan limit of 500,000 dong with a promotion of “no interest for 7 days.” He said that to borrow at a higher limit, the previous loan had to be repaid on time. In the second loan, interest began to apply and increased significantly.

Reported interest escalation

Mr. Khoa (Dinh Cong Ward, Hanoi) described a similar experience with the same app. He said he borrowed 1.5 million dong on the second loan and had to repay up to 2.3 million dong within one week, including principal and interest. He stated that this implied an interest rate of over 50% within a week.

He added that if repayment was not made on time, the debt reportedly increased immediately to about 5 million dong and continued rising weekly. He further claimed that the overall interest rate could reach over 2,000% per year.

Mental distress and contact-based harassment

Mr. Long (Ha Dong District, Hanoi) said he borrowed 7 million dong via an app named “VNĐ.” When he could not repay on time, he reported having to renew with a weekly fee of 1.4 million dong.

He said that if he did not pay, the app’s representatives repeatedly contacted family members listed in his phone contacts to pressure him and “smear” his reputation, which he described as mental harassment.

Risk warnings from banks

MSB (Maritime Bank) recently issued a warning about a fraudulent app named “Mar Vay.” The bank stated that the app is not affiliated with MSB and is not developed or operated by the bank. MSB said all activity conducted through the app is outside the official ecosystem and carries significant risks.

What MSB warns users may face

MSB warned that users who install fake apps may encounter:

• Asset theft
• Unauthorized loans
• Leakage of personal data, accounts, and biometric data
• Requests to pay fees or interest rates that are not transparent
• Potential harm to customers’ rights

VPBank also announced that it does not provide lending services through the “VAY TOT” app. The bank said it does not require customers to pay upfront money or any fees to receive disbursement.

Impact and guidance for borrowers

Banks urged citizens to be cautious with loan apps of unclear origin, especially those not officially published by banks or reputable financial institutions. They also advised borrowers not to disclose sensitive information—including passwords, PINs, or OTPs—to anyone, even if the caller claims to be a bank employee.