Commercial banks reduce interest rate for short-term loans

Illustrative photo (Source: VNA)


Hanoi (VNA)
Some commercial banks have announced their lending rate cuts as from July 10in
implementing the State Bank of Vietnam’s decision on reducing maximum
short-term interest rate for loans in VND provided by credit institutionsto
serve demand for capital in some economic sectors.

The Bank for Investment and Development of Vietnam (BIDV) announced its continued
reduction of interest rates for short-term loans in VND for priority clients
and fields.

The bank applies a
ceiling interest rate of 6.5 percent per year for the priority customers as
stipulated in the State Bank of Vietnam’s regulations, while offering the
maximum annual rate of 6.0 percent for loans in five priority areas:
agriculture and rural development; export; small and medium-sized enterprises
(SMEs); support industry; and high-tech businesses.

The preferential
interest rate is also applied to startups and firms in the environment area, as
well as businesses having regular creditrelations with the bank from at least
three years and strong financial capacity, and operating effective projects
with the bank’s loans.

At the same time, BIDV
also offers a 5.5-percent rate per annum with enterprises, individuals and
households suffering floods in central localities.

Meanwhile, the Vietnam
Prosperity Joint Stock Commercial Bank (VPBank) also announced a cut of 0.5-1
percent in interest rate for short-term loans for SMEs from July 10.

The reduction was made
after the State Bank of Vietnam revealed that it will reduce prime interest
rate by 0.25 percent per year and asked credit organisations to lower their
maximum lending rate for short-term loans in VND by 0.5 percent a year with an
aim of providing capital for some economic sectors.

The Vietnam Bank for Industry and Trade (Vietinbank) also announced a maximum
6.5- percent interest rate per yearfor projects in the five priority sectors as
from July 10.-VNA

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