Record-low interest rates drive Vietnam’s early-year credit growth
HANOI: Since the beginning of the year, several banks have launched attractive credit packages with low interest rates, some even as low as 0% per year, easing the financial burden for customers seeking additional capital, particularly during the time leading up to Tet (Lunar New Year holidays).
Lending interest rates are projected to continue decreasing in the near future, said experts.
This is a promising sign that enables businesses and individuals to access capital at reasonable costs, supporting the recovery of production, business activities and consumption.
Tet is an occasion for businesses and individuals to supplement their capital for stockpiling goods, production, business activities and shopping.
Recently, Kienlongbank announced the implementation of the programme to support individual clients in promoting production, agricultural development, rural areas and meeting the demand for consumer loans and lifestyle.
Clients participating in this loan package enjoy a preferential interest rate of 0% in the first month.
Similarly, Hdbank has also introduced a credit package worth 10 trillion dong with a 0% interest rate for the first month.
Five trillion dong have been allocated for new individual borrowers or existing individual clients who wish to borrow additional funds, while the rest has been allocated for small and medium enterprises for salary and bonus payments at the end of the year.
The interest rates for the remaining months will follow the current regulations of Hdbank.
Although the 0% rate only applies in the first month, this initiative is still a positive signal, indicating that banks are actively reducing lending rates to stimulate credit demand.
Sacombank recently increased its capital by up to 30 trillion dong to accelerate production and business activities of corporate customers and allocated up to 45 trillion dong for lending to individual clients.
The bank applies interest rates for corporate loans starting at 3% per annum for a one-month term, 4% per annum for a two-month term, 5% per annum for a three-month term and 5.5% per annum for four-to-12 months.
For individual clients, the interest rates for business loans range from 6% per annum for terms under 12 months to 7% per annum for medium to long-term loans.
The interest rates for personal loans start at 6.5% per annum, with fixed rates available for six, 12, or 24 months.
Bvbank launched a lending programme for individual clients, offering preferential interest rates starting at 5% per year.
The programme applies to new disbursements for purposes such as purchasing or renovating residential properties, personal consumption, or capital supplementation for production and business.
It also reduced the lending margin to 2% per annum after the preferential interest rate period ends.
Nam A Bank introduced a package of one trillion dong for individual clients seeking additional short-term business capital or issuing payment guarantees.
Customers can enjoy an additional interest rate reduction of up to 1.2% by meeting certain conditions set by the bank.
Nam A Bank also allocated three trillion dong in incentives for lending to businesses and individuals engaged in the seafood value chain, supporting customers in supplementing working capital for aquaculture, procurement, seafood processing, seafood feed and probiotics businesses.
In a recent report, KB Vietnam Securities JSC or KBSV predicted that the deposit interest rate environment will remain relatively stable at a low level through most of 2024.
Specifically, the 12-month deposit interest rate is projected to range from 4.85% to 5.35% per annum.
The latest update on deposit interest rates at banks as of Feb 1 showed that the trend of decreasing interest rates remains widespread across most banks.
Clients participating in this loan package enjoy a preferential interest rate of 0% in the first month.