Banks support interest rates to help flood victims restore production

Banks simultaneously reduce lending interest rates

Faced with severe damage caused by consecutive storms and floods in 2025, many provinces and cities in the North, Central and Central Highlands are facing destruction of houses and production facilities, disrupted cash flow, and interrupted production and business.

In that context, the banking system quickly stepped in, implementing interest rate support packages and financial solutions to reduce the burden on people and businesses, helping them stabilize their lives, restore production and overcome difficulties.

Recently, Vietnam Prosperity Joint Stock Commercial Bank ( VPBank ) has launched an interest rate support package worth 1,000 billion VND, targeting individual customers affected by storms and floods in 15 provinces and cities across the country: Ninh Binh, Thai Nguyen, Cao Bang, Lang Son, Thanh Hoa, Da Nang, Nghe An, Ha Tinh, Quang Tri, Thua Thien Hue, Quang Ngai, Khanh Hoa, Gia Lai, Dak Lak and Lam Dong.

This support package is deployed right at local branches and transaction offices, helping customers easily access and complete procedures quickly.

VPBank's program applies to mortgage loans with remaining terms. For long-term loans over 12 months, the interest rate is reduced by 1%/month for 6 months; for short-term loans under 12 months, the interest rate is reduced by 0.5%/month for 3 months.

According to the bank representative: “With the mission of a prosperous Vietnam and the spirit of mutual love, the bank always considers accompanying the community to overcome natural disasters and floods as its responsibility. Hopefully, the support package will contribute to reducing financial burdens, helping customers to soon stabilize their lives and restore production.”

Previously, the bank also spent a total of VND55 billion to support people in Gia Lai , Nghe An, the North and Central provinces, including necessities, construction materials and home repair costs.

*Banks review and evaluate production and business activities and customers' debt repayment capacity to promptly apply support measures and resolve difficulties. Photo: Duy Minh.*

Commitment of the Banking Industry

Implementing the direction of the Government and the State Bank, the Vietnam Bank for Agriculture and Rural Development ( Agribank ) has quickly implemented a policy to reduce loan interest rates by up to 2%/year, supporting customers affected by storm No. 12, storm No. 13 and floods.

The program applies to existing outstanding loans and new loans, adjusted according to the customer's level of damage; exempts late payment interest and adjusts overdue interest by 100% of the loan interest rate within 3 months, from November 19, 2025 to February 18, 2026.

Agribank also implemented many additional solutions such as restructuring debt repayment terms, waiving interest and fees, and providing loans to help overcome difficulties. The bank representative emphasized, “Agribank always promotes the role of a bank for the community, organizing working groups to go directly to disaster-affected localities to grasp the situation, deploy timely support and provide social security funds.”

Bac A Commercial Joint Stock Bank (BAC A BANK) also launched a VND3,000 billion support package from now until June 30, 2026, targeting individual and corporate customers suffering damage due to natural disasters and storms and floods in 2025.

The program focuses on two main capital needs: supplementing working capital for production, business recovery, advance payment of labor costs and investment in construction and repair of damaged fixed assets. The maximum interest rate reduction is 1%/year, the support period is up to 6 months, helping to significantly reduce costs in the initial reconstruction phase.

BAC A BANK also flexibly combines other preferential credit programs such as "Preferential loans - Privileged interest rates", "Loan support - Hand-in-hand opportunities", helping customers access capital quickly and at reasonable costs.

*Commercial banks pledged to reduce lending interest rates by 2% for existing loans of customers affected by natural disasters and floods. Photo: Ngoc Tien.*

The State Bank has issued a document requesting credit institutions and foreign bank branches to review and evaluate the production and business activities and debt repayment capacity of loan customers affected by storms and heavy rains and floods, and promptly apply support measures to remove difficulties for customers.

Propose that commercial banks restructure debt repayment terms, waive and reduce interest and fees for customers affected by damage according to current regulations. Develop and implement credit programs and packages with lower interest rates than normal lending rates, restore production and business; reduce lending interest rates by 0.5% - 2% for 3 - 6 months for existing outstanding debts of customers affected by storms and floods.

At the 9th National Emulation Congress of the Banking Industry (2025 - 2030) organized by the State Bank on the afternoon of November 24, Deputy Governor of the State Bank Pham Quang Dung officially launched the emulation movement of the whole industry with the theme: "The Banking industry competes in innovation and pioneering for the country to enter an era of strong and prosperous development".
The movement emphasizes 7 key tasks and practical actions to support people in disaster areas. Commercial banks committed to reducing 2% of lending interest rates for existing loans of customers affected by recent storms and floods. The whole industry donated 150 billion VND to support people to overcome the consequences of natural disasters.

Source: https://congthuong.vn/ngan-hang-ho-tro-lai-suat-giup-nguoi-dan-vung-lu-phuc-hoi-san-xuat-432011.html