MID COURSE INTERNSHIP REPORT HOME LOAN CREDIT APPRAISAL AND LENDING FOR PERSONAL CUSTOMERS AT CT GROUP

MID-COURSE INTERNSHIP REPORTMajor: International Finance and Banking HOME LOAN CREDIT APPRAISAL AND LENDING FOR PERSONAL CUSTOMERS AT CT GROUP Name: Đặng Thị Thảo Nguyên Student ID: 1913

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MID-COURSE INTERNSHIP REPORT

Major: International Finance and Banking

HOME LOAN CREDIT APPRAISAL AND LENDING FOR PERSONAL CUSTOMERS

AT CT GROUP

Name: Đặng Thị Thảo Nguyên Student ID: 1913316109

Class: K58CLC2 Supervisor: Lê Trung Thành

Ho Chi Minh City, July 2022

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FOREIGN TRADE UNIVERSITY

HO CHI MINH CITY CAMPUS

SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness

MIDTERM PROFESSIONAL REPORT REMARKS

Student’s full name: Đặng Thị Thảo Nguyên Student code:

1913316109

Name of the report: Home loan credit appraisal and lending for personal customers

at CT group

Assessment of compliance with regulations, progress and work ethics

(Maximum of 1.0 point, with one decimal

number):

Remark (circle the appropriate one):

1 The student has completed the report properly under the guidance of the

supervisor The supervisor is responsible for the title, purpose, subjects, scope and

research method(s), and chapters’ titles, and main headings of the report (3 digits):

0.8-1.0 point(s)

2 The student has failed to carefully follow the supervisor’s instructions The

supervisor is responsible for chapters’ titles, purpose, subject, scope and research

method(s), and titles and main headings of the report (2 digits): 0.5-0.7 point(s)

3 The student has failed to carefully follow the supervisor’s instructions The

supervisor is not responsible for the report: 0.1-0.4 point(s)

4 The student has totally failed to follow the supervisor’s instructions The

supervisor rejects the submission of the report: 0 point

Ho Chi Minh City,… /… /

Supervisor

(Signature with full name)

TIEU LUAN MOI download : skknchat123@gmail.com moi nhat

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MID.COURSE.INTERNSHIP.REPORT.HOME.LOAN.CREDIT.APPRAISAL.AND.LENDING.FOR.PERSONAL.CUSTOMERS.AT.CT.GROUPMID.COURSE.INTERNSHIP.REPORT.HOME.LOAN.CREDIT.APPRAISAL.AND.LENDING.FOR.PERSONAL.CUSTOMERS.AT.CT.GROUPMID.COURSE.INTERNSHIP.REPORT.HOME.LOAN.CREDIT.APPRAISAL.AND.LENDING.FOR.PERSONAL.CUSTOMERS.AT.CT.GROUPMID.COURSE.INTERNSHIP.REPORT.HOME.LOAN.CREDIT.APPRAISAL.AND.LENDING.FOR.PERSONAL.CUSTOMERS.AT.CT.GROUPMID.COURSE.INTERNSHIP.REPORT.HOME.LOAN.CREDIT.APPRAISAL.AND.LENDING.FOR.PERSONAL.CUSTOMERS.AT.CT.GROUPMID.COURSE.INTERNSHIP.REPORT.HOME.LOAN.CREDIT.APPRAISAL.AND.LENDING.FOR.PERSONAL.CUSTOMERS.AT.CT.GROUPMID.COURSE.INTERNSHIP.REPORT.HOME.LOAN.CREDIT.APPRAISAL.AND.LENDING.FOR.PERSONAL.CUSTOMERS.AT.CT.GROUPMID.COURSE.INTERNSHIP.REPORT.HOME.LOAN.CREDIT.APPRAISAL.AND.LENDING.FOR.PERSONAL.CUSTOMERS.AT.CT.GROUP

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LETTER OF DECLARATION

I certify that this report does not incorporate without acknowledgement, any

material previously submitted for a degree or diploma in any university, and to the

best of my knowledge and belief it does not contain any material previously

published or written by another person, except when due reference is made in the

text Finally, I hereby declare that I am the sole person involved in the preparation

and completion of this report under the guidance of my supervisor.

Ho Chi Minh City,… /… /

Author

(Signature with full name)

Đặng Thị Thảo Nguyên

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This is my internship training report after completion of internship training at CT

Group Vietnam, Ho Chi Minh city in 2022 With my endeavor to accomplish the

report, I was continually gathering material, brainstorming ideas, and drafting the

outline Obviously, despite my best efforts and focus, this report cannot be

produced without mistakes Therefore, I wish to express my heartfelt gratitude to

Mr Lê Trung Thành, who is the internship training supervisor, for all of your

enthusiasm, dedication in supporting relevant and relevant knowledge, and practical

experience to assist me and other students successfully completing the internship.

Moreover, I also thank Mr Nguyễn Tân Hoàng Phương, Chief Executive Officer of

CT Group also who is supervisor in charge of the internship training, Department of

Finance Who gave me a golden opportunity to follow the particular practical

internship training in the CT Group and be guidance, necessary support,

co-operation, encouragement, and the fullest effort of them to the success of this

opportunity, all are grateful and unforgettable All of that together has strongly

facilitated me to acquire boundless knowledge, a crucial skill set, and precious

experience.

Finally, my deepest thanks come to the teachers of Foreign Trade University – Ho

Chi Minh City Campus for their enthusiasm and dedication to teaching, as well as

for providing me with a solid foundation of professional knowledge throughout the

past three years.

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TABLE OF CONTENTS

LIST OF ABBREVIATIONS

LIST OF TABLES AND FIGURES

PREFACE

CHAPTER 1: INTRODUCTION OF CT GROUP VIETNAM

1.1 Overview of CT Group

1.1.1 Brief history and development of CT Group

1.1.2 General Information

1.1.3 Organizational hierarchy chart of CT Group

1.1.4 Business outcomes of CT Group in 2019 - 2021

1.1.5 Importance of Credit Appraisal of home loan to CT Group

1.2 Summary of internship activities

CHAPTER 2: CREDIT APPRAISAL PROCEDURE OF HOME LOAN IN CT GROUP 10

2.1 Overview of home loan process for personal customer at CT Group 10

2.2 Steps of credit appraisal of home loan for personal customer at CT Group 12

2.2.1 Step 1: Legal assessment 13

2.2.2 Step 2: Appraising creditworthiness 13

2.2.3 Step 3: Appraising loan application 14

2.2.4 Step 4: Assessment of proof of income and repayment capability 14

2.2.5 Step 5: Preparing credit appraisal report 15

2.3 Discussion of credit appraisal of home loan for personal customer at CT Group 16

2.3.1 Strengths 16

2.3.2 Limitations and explanations 17

CHAPTER 3: THE OUTLOOK, ORIENTED DEVELOPMENT AND RECOMMENDATIONS FOR IMPROVEMENT OF HOME LOAN CREDIT APPRAISAL AND LENDING PROCESS FOR PERSONAL CUSTOMERS AT CT GROUP 18

3.1 The outlook of CT Group Vietnam 18

3.1.1 Opportunities 18

3.1.2 Challenges 19

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3.3 Recommendations for improvement of home loan credit appraisal of personal

customers at CT Group 20

3.3.1 Improvement in human resource 20

3.3.2 Improvement in technology system 21

CONCLUSION 22

REFERENCE 24

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LIST OF ABBREVIATIONS

Abbreviation In English

ASD Agency and Sales Development CIC Credit Information Center CRM Customer relationship management DTI Debt To Income

PFO Personal Finance Officer PNI Paid/No Issue VND Viet Nam Dong

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LIST OF TABLES AND FIGURES LIST OF TABLES

Table 1 1 Total Profit of 2019 - 2021

Table 1 2 Total Profit Analysis 2019-2021

Table 2 1 Evaluation approach of home loan in CT Group 11

LIST OF FIGURES

Figure 1 1 Organizational hierarchy

Figure 2 1 Credit extension process for home loans at CT Group 11

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Nowadays, housing is one of the most pressing issues in modern society, particularly for young people who lack the financial resources to own a home or invest in real estate As a result, banks are dominating in the form of housing loans

to encourage credit and investment, as well as to expand the economy On the other hand, CT group, which is a real estate company, still operates in many fields, including financial services, management consulting services, economic-market analysis for businesses domestically and internationally And among the group's financial services on bonds and trust funds: property Development Loan, investment Loan, asset backed security, recuritization, syndicated loan, issuing bonds, rates and FX, convertible bond, private equity, Home loan is one of the company's indispensable, distinctive and distinguishing services in the real estate industry, in order to leverage investment and create beneficial circumstances

Credit assessment is crucial to this process because it makes it much easier to identify credit risks before, during, and after loan disbursement An efficient credit appraisal ensures an effective credit management procedure for the company to regulate and monitor their risks For that reason, it is essential to establish consistent and updated guidelines for evaluation criteria so as to promote and maintain a clear and plausible credit procedure overall.

With the intention of acquiring certain knowledge of the home loan appraisal process I have decided to perform my internship in the Finance Department, CT Group and conduct my report with the topic of “Home loan credit appraisal and lending process for personal customers at CT Group” including three major chapters:

Chapter 1: Introduction of CT Group Vietnam Chapter 2: Credit appraisal procedure of home loan in CT Group Chapter 3: The outlook, oriented development and recommendations for

improvement of home loan credit appraisal and lending process for personal customers at CT Group

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This report aims to show clearly how CT Group evaluates loan applications and

then decides whether to approve or reject a credit extension request through my

observation during my internship I assess my own performance, evaluate the

process, and give some suggestions for improving this process.

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CHAPTER 1: INTRODUCTION OF CT GROUP VIETNAM 1.1 Overview of CT Group

1.1.1 Brief history and development of CT Group

C.T Group was established in 1992 by Mr Tran Kim Chung, operating in industries such as: Real Estate, Retail, Construction, Financial Investment, Ecotourism In which, real estate is a key industry, playing an essential part in the company's development

C.T Group does not limit its operations to real estate, but also develops into many other industries with the goal of becoming a typical multi-industry company in Vietnam, increasing the awareness of Vietnamese brand values There are other social activities to help construct a more developed and modern Vietnam

The corporation now owns 36 member companies with about 2000 workers working in various industries At the same time, CT Group currently owns more than 1000 hectares of property The company's projects include a wide range of industries, and its high-quality goods provide clients with a comfortable location to live and work.

Initially, Saigon Trading Company Limited was the company's original name One year later, the business's name was changed to C&T Trading and Service Co., Ltd, and a subsidiary company, Him Lam Ltd, was founded In the following years, the corporation continued to grow and formed numerous new member companies, including C&T International Joint Stock Company in 1998 The new business was formally designated C.T Group - a multi-industry organization - in 2006 This is a watershed moment for the corporation dubbed "the claw of the Vietnamese dragon"

by the Wall Street Journal The company's growth rate is increasing, and it is swiftly taking the lead in Vietnam's real estate industry.

CT Group represents dynamism and diversity The company was founded at a time when the country was entering an era of innovation and integration, and despite

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numerous challenges, it has become one of the real estate industry's monuments Up

to now, with 30 developments, the company has received countless prestigious

awards, becoming a partner of many well-known companies both at home and

abroad Furthermore, CT Group is consistently ranked in the top of the best

enterprises in Vietnam.

1.1.2 General Information

Name of organization: CT Group Vietnam

Website: ctgroupvietnam.com

Head Office: Léman Luxury Apartments, at 117 Nguyen Dinh Chieu Street, Ward

6, District 3, Ho Chi Minh city.

Telephone number: (84 08) 6297 1999

Fax : (84 08) 6297 2000

Tax code: 0308469355

E-mail: info@ctgroupvietnam.com

1.1.3 Organizational hierarchy chart of CT Group

Chairman of the Board of Directors of C.T Group Vietnam is Mr Tran Kim Chung.

He is reported to have graduated from Harvard University in the United States As

the founder, he has made significant contributions to the growth and success of CT

Group as it is today Partners always have faith in him because of his ability to lead

and think strategically Last but not least, he also occupies a number of specific

roles in businesses or at international exchange conferences.

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The business today controls 36 member firms, employing around 2000 people across many industries Regarding the personnel structure, the finance department now employs 60 workers, including collaborators and interns.

Figure 1 1 Organizational hierarchy

1.1.4 Business outcomes of CT Group in 2019 - 2021

Table 1 1 Total Profit of 2019 - 2021

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Profit before Tax 25.58 95.79 643.39

Table 1 2 Total Profit Analysis 2019-2021

2019 2020 2021 2020/2019

(%)

2021/2020 (%)

Net Revenue 356.19 366.99 251.75 3.03% (31.40%)

Total Expenses (287.20) 271.20 226.17 194.43% (16.60%)

Profit before Tax 643.39 95.79 25.58 (85.11%) (73.30%)

In the financial year 2019, CT Group generated an amount of Net Revenue of over

VND 350.00 Billion, however, a tremendous amount of Profit before Tax was

recorded due to a Reversal of Provision for doubtful receivables which made the

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Total Expenses become a gain As a result, 2019 is still a successful financial year for CT Group regarding not having a large Net Revenue.

The figures in Table 1 have demonstrated precisely a challenging year 2020 that CT Group had to surpassed as the corporation’s data has decreased significantly.

Although the amount of Expenses in financial year 2020 was only VND 271.20 billion which is relatively low compared to financial year 2018, CT Group still recorded a small gain in Net Revenue of 3.03% as well as a significant drop in Profit before Tax of 85.11%; the figures for those financial data are VND 366.99 billion and VND 95.79 billion, respectively.

Nonetheless, these financial data of CT Group during the 2020 - 2021 period are completely reasonable due to the fact that most of the industries in the economy are critically affected by COVID-19 pandemic

1.1.5 Importance of Credit Appraisal of home loan to CT Group

Home loan was formed at CT Group when the demand for capital, money to buy houses, and investments increased sharply in the real estate market Recognizing consumer and customer preferences, CT Group has implemented a new strategy to provide the greatest experience and prospects for customers as well as growing product commercial potential.

Although house loans are not CT Group's primary financial activity, it does contribute to the company's relationship with clients and serve as a distinguishing feature among real estate businesses Home loan is not only an indispensable, distinctive and differentiating service but also strategic leverage to promote business for the company when both customers and the company can benefit from

it Customers are supported with capital to invest, and to fulfill their requirements and achieve their goals, thus generating advantageous conditions and attracting a large number of customers, meeting customer needs and bringing profits to the company.

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Tiêu đề	Home Loan Credit Appraisal And Lending For Personal Customers At CT Group
Tác giả	Đặng Thị Thảo Nguyên
Người hướng dẫn	Lê Trung Thành
Trường học	Foreign Trade University
Chuyên ngành	International Finance and Banking
Thể loại	Mid-Course Internship Report
Năm xuất bản	2022
Thành phố	Ho Chi Minh City

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