Many banks have reduced the lending interest rate for old loans to 15 percent per year. At the same time, the lending interest rate for new loans is now popularly hovering between 13 percent per year and 15 percent per year.
According to Nguyen Thanh Toai, deputy general director of Asia Commercial Joint Stock Bank (ACB), since the State Bank of Vietnam (SBV)’s governor issued document requiring commercial banks to reduce the lending rate to below 15 percent per year for old loans, so far, as many as 20,000 borrowing dossiers of institutions and individuals have enjoyed lower loan rates at ACB.
Currently, the lender is considering reducing interest rates for other eligible loans soon.
Meanwhile, almost new loans at ACB have the interest rate at no higher than 15 percent per year. Toai said that the interest rate reduction is necessary as bank now also wants to boost credit growth in the remaining months of this year. In the first six months of this year, ACB’s credit growth was 0.9 percent while its credit growth quota assigned by the central bank in early this year was at 17%.
Ac announced by the central bank on August 6, the proportion of loans at the interest rate of above 15 percent per year is now only 29.1 percent while loans at the interest rate of 13-15 percent per year account for 49.1 percent and the rest is loaned at the interest rate of less than 13 percent per year.
An unnamed bank staff also said that the lending interest rate for four prioritised sectors is now only 14 percent per year. For old loans, the bank is also completing documents to reduce the interest rate to below 15 percent per year. Presently, only 40 percent of borrowing dossiers are waiting for consideration.
According to a believable source, the interest rate at this bank is ranging around 13-16 percent per year.
Meanwhile, a branch director in HCM City said that the interest rate at this year is ranging around 14-17 percent per year. Only about 40-50 percent of old loans have enjoyed lower interest rates.
At the management level, Nguyen Hoang Minh, deputy director of the SBV’s HCM City branch, said that presently, the lending interest rates of HCM City-based banks are popularly from 10.5-15 percent per year depending on business ranking and prioritised sectors.
According to the report of the SBV’s HCM City branch, only about 4-5 banks in the city have not reduced the lending interest rate to below 15 percent per year for old loans yet, mainly small banks, and some long term loans have not been adjusted down as banks have not balanced capital sources.
Minh said that banks will also lower the interest rate basing on the financial situation of banks and reputation of enterprises to avoid risks for the bank, therefore, not all loans are lowered the interest rate to below 15 percent per year.