What is the interest rate for a loan of 1 billion VND at Agribank?

According to Lao Dong, Agribank currently applies preferential interest rates for production and business loans, with a starting rate of 6.0%/year.

This interest rate is applied to medium and long-term loans of 12 months or more, and lasts until October 31, 2024. This interest rate is about 1.5% lower than the standard interest rate that Agribank usually applies to production and business loans.

Previously, Agribank also adjusted interest rates many times in 2023 to support people and businesses, reducing them by 1.3-4% compared to the beginning of the year. This policy will continue to be implemented in 2024, targeting priority areas such as agricultural production, aquaculture, and real estate.

Notably, for short-term production and business loans, the preferential interest rate is currently up to 2.0%/year lower than the floor interest rate for production and business loans corresponding to each term:

Applicable for loans up to 3 months: from 3.0%/year.

Applicable to loans over 3 to 6 months: from 3.5%/year.

Applicable to loans over 6 to 12 months: from 4.0%/year

What is the interest rate for a loan of 1 billion VND at Agribank?

In case, a customer borrows 1 billion VND from Agribank with an interest rate of 6.5%/year for a period of 12 months. According to the decreasing balance method, the total principal and interest that the customer must pay monthly will be as follows:

Interest rate for production and business loans is 1.5%/year lower than the current lending interest rate floor.

Monthly Principal = Loan Amount/Loan Term.

First month's interest = Loan amount x Monthly interest rate/Loan term.

Interest for the following months = Remaining principal x Monthly interest rate/Loan term.

Customers borrow 1 billion VND at Agribank, the interest rate must be paid according to the term. Photo: screenshot.

The monthly principal payment is fixed, while the interest payment will decrease according to the outstanding balance.

In addition to the method of calculating loan interest based on the decreasing balance, Agribank proposes to calculate based on the initial balance. That is, the monthly interest during the entire loan period will be equal and calculated based on the initial principal amount.

Interest = Principal balance x Loan interest rate/Loan term.

Source: https://laodong.vn/kinh-doanh/vay-1-ti-dong-tai-agribank-chiu-lai-suat-ra-sao-1383122.ldo