Publicly disclose loan interest rates, creating convenience for people and businesses

Proactively removing difficulties and increasing access to bank credit capital for people and businesses under the direction of the Prime Minister and the State Bank of Vietnam , banks in the province have widely announced lending interest rates. This move not only facilitates people and businesses to access capital but also contributes to information transparency and creates healthy competition among banks.

Agribank Vinh Phuc regularly updates loan interest rates, helping customers promptly adjust production and business plans, improving the safety and efficiency of capital flows. Photo: Chu Kieu

In early March 2024, the State Bank of Vietnam (SBV) issued Document No. 1628 on announcing lending interest rates, creating favorable conditions for people and businesses to increase their access to bank credit sources.

Request credit institutions (CIs) and foreign bank branches to continue to announce average lending interest rates, the difference between average deposit and lending interest rates, lending interest rates for credit programs, credit packages and other types of lending interest rates according to the direction of the Prime Minister .

Credit institutions are responsible for the completeness, timeliness and accuracy of information and data published on their websites; clearly explain the content of published information and data; proactively receive, respond to and handle customer inquiries...

Credit institutions are required to send the link announcing interest rates to the State Bank before April 1, 2024. In case the credit institution changes the link, it must update within 2 working days with the management agency...

Up to now, banks in the province have announced lending interest rates with a difference of more than 3% - 5%/year compared to mobilization interest rates depending on the loan purpose.

Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) Vinh Phuc branch is a pioneer in widely announcing lending interest rates on the unit's website for customers to know and access. Accordingly, the average lending interest rate at this time is 6.49%/year. The difference between the average lending interest rate and the average capital mobilization interest rate is 3.12%/year.

Similarly, the Vietnam Bank for Agriculture and Rural Development (Agribank) Vinh Phuc branch also announced the average lending interest rate, in which the short-term lending interest rate for some priority industries and sectors is 4%/year. The normal short-term lending interest rate is at least 5%/year; the normal medium and long-term lending interest rate is at least 6%/year; the lending interest rate for consumption via credit cards is 13%/year; the average lending interest rate at Agribank is 7.47%/year. Currently, the interest rate difference between lending and mobilization is 1.47%/year.

Not only large-scale banks publicly disclose loan interest rates, but many joint-stock commercial banks in the province have also widely announced this information.

Vietnam Prosperity Joint Stock Commercial Bank (VPBank) Vinh Phuc branch has announced the reference lending interest rate table and interest rate margin applied to unsecured loans according to the regulations of the State Bank of Vietnam. For customers borrowing capital for 12 months or less, VPBank Vinh Phuc's reference lending interest rate is 7%/year. For loans with a term of 12 - 36 months, the interest rate is 7.6%/year. The reference interest rate of up to 7.7% applies to loans of 36 - 60 months...

In order to help customers easily find information about interest rates to access capital for production, business and consumption, at this time, many banks are actively promoting propaganda about loan interest rates on their websites or on mass media.

Widely disseminating information about lending interest rates brings double benefits as banks, people and businesses all benefit. Along with that, many banks continuously offer preferential credit packages to retain customers and increase competitiveness.

The simultaneous announcement of lending interest rates by banks is a positive sign for the money market, as it increases transparency in banking operations and creates healthy competition among banks. This is also an effective solution for people and the business community in accessing credit and promoting the effectiveness of monitoring banking operations.

Mr. Nguyen Van Hung, Director of Minh Minh Hieu Asia Co., Ltd., Dong Da Ward (Vinh Yen) said: As a business specializing in sewing uniforms with a large number of orders, the unit always has to borrow capital from banks. The fact that banks widely announce lending interest rates helps businesses easily learn about each bank's lending interest rate framework, thereby being able to choose a credit package suitable for each time.

With interest rates ranging from only 4.1% - 5% for short, medium and long-term loans for production and business, this is an ideal interest rate, creating a boost for business development at this time. Low lending interest rates will also promote rapid credit growth for production and business, not only supporting growth momentum, but also helping people and businesses expand investment, anticipating economic recovery.

Thanh An

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