Accordingly, Agribank announced that the short-term lending interest rate for certain priority sectors and fields, as directed by the Government and the State Bank of Vietnam, is 4.0% per year.

The minimum interest rate for short-term loans is typically 5% per year; the minimum interest rate for medium and long-term loans is typically 6% per year.

The interest rate for consumer loans via credit cards is 13% per year, which is the highest lending interest rate at Agribank in March 2024.

Therefore, the average lending interest rate at Agribank is 7.47% per year.

The bank stated that the average cost of capital is 6% per year. This includes an average deposit interest rate of 4.2% per year, and other costs (including mandatory reserves, liquidity reserves, deposit insurance, and operating expenses) of 1.8% per year.

With the average lending and deposit interest rates mentioned above, the current interest rate spread between lending and deposits is 1.47% per year. This is considered the lowest spread in the banking market today, while the spread at typical commercial banks is usually 3-4%.


INTEREST RATES FOR MARCH 2024 AT AGRIBANK
CONTENT INTEREST RATE
Short-term lending interest rates for certain priority sectors and fields as directed by the Government and the State Bank of Vietnam. 4% per year
Typical short-term lending interest rates 5% per year (minimum)
Typical interest rates for medium and long-term loans 6% per year (minimum)
Credit card loan interest rates 13% per year
average lending interest rate 7.47%/year
Average cost of capital 6% per year
average deposit interest rate 4.2% per year
Other expenses (including mandatory reserves, payment reserves, deposit insurance, and operating expenses) 1.8% per year
Interest rate spread between deposits and loans 1.47%/year

Agribank is also a pioneering bank in implementing preferential credit packages in accordance with the policies of the Government and the State Bank of Vietnam.

Most recently, this bank announced the continued implementation of a preferential credit package of 8,000 billion VND for the forestry and fisheries sectors. The preferential interest rate is at least 1-2% lower per year than the average lending interest rate for the same term.

By publicly disclosing lending interest rates, average lending interest rates, and the spread between lending and deposit interest rates, this marks the first time Agribank has disclosed information as directed by the Prime Minister and the State Bank of Vietnam.

Previously, the State Bank of Vietnam required credit institutions to publish average lending interest rates, the difference between average deposit and lending interest rates, interest rates for credit programs and packages, and other types of lending interest rates (if any) as directed by the Prime Minister and the State Bank of Vietnam.

Before Agribank, BIDV was the first bank in the Big4 group of banks to do this.