Agribank sharply reduces lending interest rates

Agribank has adjusted lending interest rates down 5 times since the beginning of the year. Interest rates have been reduced by 1.3-2.5%/year for production and business sectors; by 2-3%/year for consumption sectors...

Agribank accepts profit cuts, is willing to share difficulties, and accompany people, businesses and the economy.

  Sharp reduction in lending rates

In the first 9 months of this year, Agribank seriously implemented the direction of the State Bank, deployed many solutions to support the economy to overcome difficulties, made efforts to do business safely and effectively, reduced lending interest rates to support people and businesses, and contributed to realizing the goals of the National Assembly and Government's Economic Recovery and Development Program.

Since the beginning of the year, the State Bank has adjusted the operating interest rates four times by 0.5-2.0%/year to reduce the market lending interest rate, increase the economy's access to capital, and create conditions for credit institutions to reduce lending interest rates, contributing to increasing social investment, supporting production, economic growth and job creation.

As a leading State-owned commercial bank in implementing the policies of the Party and the State, Agribank seriously implements the direction of the State Bank, deploys many solutions to support the economy to overcome difficulties, strives to do business safely and effectively, and reduces lending interest rates to support people and businesses.

Based on cost reduction and deposit interest rate reduction, Agribank has adjusted lending interest rates 5 times since the beginning of the year, accordingly reducing interest rates by 1.3-2.5%/year for production and business sectors; reducing 2-3%/year for consumption sectors; reducing 3-4%/year for real estate business sectors...

With the current lending interest rate, Agribank hopes to share difficulties, support people and businesses to optimize loan costs, and promptly supplement capital sources to restructure operations.

Although banking activities also face many difficulties due to the impact of the economy, Agribank accepts to cut profits, is willing to share difficulties, and accompany people, businesses and the economy. It is estimated that Agribank will save more than 1,000 billion VND to reduce lending interest rates, with 2.2 million customers supported.

Synchronously deploy solutions to support the economy

On July 15, 2023, the Government issued Resolution 105/NQ-CP on tasks and solutions to remove difficulties for production and business, continue to promote administrative procedure reform, and tighten discipline. One of the key tasks and solutions is to support cash flow, reduce costs, and increase access to capital for businesses and people.

To increase access to credit for customers, especially people in remote areas, and at the same time limit illegal credit, since 2019, Agribank has implemented a consumer credit program with a scale of 5,000 billion VND, lending a maximum of 30 million VND without collateral. To date, the program's turnover has far exceeded its scale, reaching more than 76,000 billion VND with more than 834,000 customers borrowing capital, with outstanding loans of 1,617 billion VND with nearly 82,000 customers.

In addition to interest rate reduction solutions, in 2023, Agribank will simultaneously implement many preferential credit policies and programs for many customer groups. Specifically, the policy of restructuring debt repayment terms and maintaining debt groups according to Circular 02 of the State Bank has so far restructured debts for more than 3,700 customers with a total outstanding debt of VND 33,607 billion.

Agribank seriously implemented the direction of the State Bank, deploying many solutions to support the economy.

Implementing interest rate support from the State budget according to Decree 31, Agribank has supported interest rates for 829 customers; loan turnover of VND 13,312 billion, outstanding debt of VND 4,564 billion, interest rate support amount of VND 77 billion.

Low-interest credit programs have been actively implemented by Agribank with a scale of nearly 10,000 billion VND, with diverse subjects such as preferential credit programs for the forestry and fishery sector, import-export customers, small and medium enterprises, large enterprises, social housing, officials receiving salaries from the State budget, health sector staff, etc.

Regarding the preferential credit program for social housing loans under Resolution 33/NQ-CP, up to now, Agribank has approved 2 social housing projects with an approved amount of VND 1,000 billion, outstanding loans of VND 78 billion. Agribank also reduces interest rates by up to 3% for customers borrowing capital for the purpose of real estate business with difficulties and outstanding loans from January 31, 2023 to December 31, 2024.