Private joint stock banks offer higher home loan rates than state-owned banks

15-Jan-2020 Intellasia | Nguoi Dong hanh | 6:02 AM Print This Post

Survey of Nguoi Dong Hanh of 16 banks in Hanoi showed that the home loan interest rates of some banks are tending to fall. The interest rates in the preferential period (six months, one year) are currently ranging from seven to 10 percent per annum. At the end of the preferential period, the lending interest rates are calculated based on a base interest rate plus a range of 3.5 percent to four percent per annum depending on each bank.

Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank) Thanh Cong branch has applied two options for home loan borrowers. In the first option, the interest rate is fixed at 7.8 percent per annum in the first year, down from 8.1 percent per annum in the previous two months. In the second option, the interest rate is fixed in at 8.7 percent in the first two years. In both options, after the preferential period, lending rate is calculated based on the 24-month interest rate plus 3.5%. The credit staff at this branch also added that the bank is associated with many investment projects to provide credit to housing projects. In addition to the above two packages, customers receiving salaries via Vietcombank accounts are offered a 0.2 percent per annum reduction in the first 12 months and grace period of original principal of up to 24 months.

Regarding repayment of debt before maturity, Commercial Joint Stock Bank for Investment and Development of Vietnam (BIDV) is offering a lower rate than other banks by about 0.5 percentage point. Specifically, the one-year repayment fee is one percent, while two to three-year repayment fee is 0.5%. At other banks, the fee for repaying loans two years early is often 1.5 percent to two percent per annum, while the fee for repaying loans three years early and four years early is respectively one percent and 0.5%.

Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank) and BIDV still keep their interest rates for home loans unchanged. BIDV Tran Thai Tong branch applies a rate of eight percent per annum in the first year, while VietinBank Nam Thang Long branch offers a rate of 8.1 percent per annum in the first year. In the following years, the two banks apply a rate of about 11 percent per annum.

At joint stock banks, the home lending interest rates are higher. Vietnam Technological and Commercial Joint Stock Bank (Techcombank) Cau Giay branch applies a preferential rate of 7.99 percent per annum in the first six months, 8/29 percent per annum in the first 12 months for project houses. The interest rates for house repairing are higher with 8.29 percent per annum in the first six months and 9.49 percent per annum in the first 12 months. The additional rate after the preferential period fluctuates from 4.19 percent to 5.69 percent per annum, depending on customer credit rating.

Military Commercial Joint Stock Bank (MB) Ha Dong branch is offering a fixed lending rate for home loans of 10.5 percent per annum in the first three months for customers borrowing in more than seven-year term and 10.3 percent per annum for customers borrowing in one to five-year terms. Meanwhile, MB Hoan Kiem branch said that the preferential interest rate is currently 7.99 percent per annum in the first year, down compared to the last month, but the preferential rate is only applied until the end of February. For connected projects, the bank has two preferential options, a preferential interest rate of 8.3 percent per annum in 18 months and a four percent discount of the apartment value offered by project investors; or a support of zero percent rate in the first 18 months by project investors, but customers can only borrow up to 65 percent of the apartment value.

At Asia Commercial Joint Stock Bank (ACB) Huynh Thuc Khang branch, the interest rate for home loans and home repair loans is currently 9.5 percent per annum in the first three months or 10.5 percent per annum in the first years.

Vietnam Prosperity Commercial Joint Stock Bank (VPBank) Lieu Giai branch applies a rate of about 8.5 9.5 percent per annum in the first year, and HCM City Development Commercial Joint Stock Bank (HDBank) Dong Do branch offers a preferential rate of 10 10.5 percent per annum in the first six months, down by nearly two percent. Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) Thuong Dinh branch lists its lending interest rate at 13-14 percent per annum in the first year for loans with decreasing balance, and 8.5 percent per annum in the first year if it is based on the outstanding principal.

Some smaller joint stock banks apply home loan promotions based on packages and terms. Maritime Commercial Joint Stock Bank (MSB) provides three different real estate credit packages with interest rates reaching respectively 6.99%, 8.99 percent and 9.99 percent per annum in six months, 12 months and 18 months, respectively. After the preferential period, these interest rates will be calculated as a 12-month deposit rate plus 3.5%.

Credit staffs of Bac A Commercial Joint Stock Bank (BacABank) Ba Trieu branch, Nam A Commercial Joint Stock Bank (NamABank) Thanh Xuan branch and Lien Viet Post Commercial Joint Stock Bank (LienVietPostBank) Hoang Mai branch said that their home loan interest rate is about nine percent per annum in the first year, and 12-13 percent per annum after the preferential period.

Foreign banks are offering lower incentives for home loans and home repair loans compared to domestic banks. Standard Charted Bank has three options with the rates of respectively 6.79%, 7.79 percent and 8.39 percent per annum on terms of one year, two years and three years, respectively. According to their credit staffs, the current three-year rate is less than the 8.79 percent per annum listed previously. After the preferential period, interest rate will be about 10 10.5 percent per annum.

Shinhan Bank currently has three home loan packages. Customers who receive a transfer salary of over 40 million dong per month will receive a preferential rate of 7.2 percent per annum in the first year, eight percent per annum in the first two years, 9.5 percent per annum in the first three years.

Vu Quoc Hung, director of the Credit Department of the State Bank of Vietnam (SBV) said that by the end of 2019, the growth of outstanding real estate loans was 8.8%. The SBV is implementing real estate credit tightening policies to control lending risks in this sector. Specifically, the agency will continue to promulgate regulations and conduct monitoring to ensure that real estate loans are made for the right purposes.

 


Category: Finance, Vietnam

Print This Post