This year, the Prime Minister has set a target for the banking sector to achieve approximately 15% credit growth, focusing on lending to sectors that drive economic growth. As of the end of July, credit outstanding grew by nearly 5.7% compared to the end of last year, reaching almost VND 14,330 trillion.
In a context of weaker credit demand than in previous years, the race to attract borrowers is more competitive than ever. Currently, the average lending rate of the entire system, according to the State Bank, has decreased by almost 1% compared to the end of last year, reaching 8.3% per annum.
Housing loan interest rates from 5.49% per annum
Banks are launching new preferential loan packages for individuals with medium and long-term loans, with interest rates of 5-6% per annum, applied during the first 6-36 months of the loan. This interest rate level is considered by bank representatives as the lowest in a decade. With some loan packages offering preferential interest rates at the beginning, the bank leaders even accept a “break-even” in the short term to stimulate credit demand.
At Bank of Vietnam (BVBank), the bank is currently offering a lending program starting from 5.49% per annum for individuals borrowing to buy houses, and interest rates from 5.99% for those investing in real estate accumulation. This interest rate is currently on par with the 12-month term deposit rate.
For real estate loans, BVBank also speeds up the approval process within 24 hours. Credit and asset assessment is done quickly via a Zalo video call. Income verification procedures are simple, with a loan limit of up to 85% of the value of the secured property.
Especially, customers can choose a grace period of up to 24 months or flexible principal repayment installments to maximize debt pressure. BVBank also accepts mortgaged assets that are real estate with or without a certificate of ownership.
Consumer loans with simple procedures and interest rates from 5.99% per annum
In addition to policies to attract medium and long-term individual borrowers, many banks are focusing on short-term consumer lending programs. This is also a key strategy, according to BVBank leaders, to help the bank grow in a context of weak overall credit demand.
Also, starting this July, consumers borrowing for flexible consumption no longer need to provide a capital usage plan as before. This change aims to facilitate customers’ access to bank credit, contributing to the expansion of lending activities for daily life and consumption.
Consumer loans at BVBank currently offer interest rates as low as 5.99% per annum for large loan amounts, for home repair and furniture purchase needs. In addition, customers only need to use a repayment source table and a loan proposal without having to list the details of the assets to be purchased.
The bank is also offering debt repayment loans at other banks with interest rates from 3.49% in agriculture, 4.49% in production and business, and 5.49% in real estate, construction, and home repair. Customers can use existing appraisal results and a grace period of up to 24 months.
Experts believe that low lending rates will be effective when the economy is in the recovery phase. In addition, the transparency of lending rates by banks is an important move, according to experts, to promote competition in pricing and services, benefiting borrowers.
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