Lending interest rates continue to decline

VTV.vn - 6.55%/year is the average lending interest rate for new transactions of commercial banks today, down 0.38%/year compared to the end of 2024.

Lending interest rates continue to decline

This positive development reflects the proactive, flexible and timely management results of the State Bank of Vietnam (SBV), including regularly directing credit institutions to continue to reduce operating costs, increase the application of technology and solutions to reduce lending interest rates. As of October 31, interbank interest rates for terms over 1 month increased slightly by 0.11-0.37%/year, reflecting increased short-term liquidity demand, but still under control.

In addition, to promptly overcome the impacts of natural disasters, storms and floods, the State Bank has required commercial banks to reduce interest rates by up to 2% per year, restructure debt repayment terms, waive and reduce loan interest rates and provide new credit so that people and businesses can soon restore production and business.

Banks have reduced interest rates by 0.5 - 2%/year for affected loans, not collecting late interest, and adjusting overdue interest rates to the interest rates in due time. In particular, the Bank for Agriculture and Rural Development ( Agribank ) has set aside a credit package of VND5,000 billion with preferential interest rates reduced by a maximum of 1%/year for individual customers to overcome the consequences of storms and floods; Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) has reduced interest rates by a maximum of 2%/year for both existing and new customers, applicable until December 31, 2025.

The restructuring of the credit institution system continues to be implemented according to the Project "Restructuring the credit institution system associated with bad debt settlement in the period 2021-2025" (Project 689). By the end of August 2025, the bad debt ratio on the balance sheet (excluding commercial banks under special control) remained at 1.71%, achieving the target set by the National Assembly and the Government of below 3%.

With reduced interest rates, reasonable credit growth, controlled bad debt and accelerated digital transformation, the SBV's monetary policy continues to play a pivotal role in stabilizing the macro economy , supporting businesses and people and creating a solid foundation for sustainable growth in the coming time.

Source: https://vtv.vn/lai-suat-cho-vay-tiep-tuc-xu-huong-giam-100251110095427087.htm