What are the current interest rates for bank loans in Vietnam?
What are the current interest rates for bank loans in Vietnam? When shall the State Bank of Vietnam provide special loans? - Ms. Thuy (Quang Binh)
Summary of current interest rates for bank loans in Vietnam
(1) The maximum short-term loan rate in Vietnamese dong specified in Decision 1125/QĐ-NHNN in 2023 is as follows:
- Financial institutions, foreign bank branches (excluding credit unions and microfinance institutions) apply a maximum short-term lending rate in Vietnamese dong of 4.0%/year.
- Credit unions and microfinance institutions apply a maximum short-term lending rate in Vietnamese dong of 5.0%/year.
(2) Housing support lending specified in Decision 2081/QĐ-NHNN in 2022 is as follows:
The interest rate of commercial banks applied in 2023 for the outstanding balance of housing support loans is 5.0%/year.
Eligible borrowers include: (As specified in Article 1 of Circular 11/2013/TT-NHNN as amended by Article 1 of Circular 32/2014/TT-NHNN)
(3) Lending to buy, rent, purchase social housing, build new or renovate and repair houses for living specified in Decision 486/QĐ-TTg in 2023 is as follows:
The preferential loan interest rate at the Social Policy Bank applies to loans with outstanding balances for buying, renting, purchasing social housing, building new or renovating and repairing houses for living is 4.8%/year.
Eligible borrowers include: (As specified in Clause 1 Article 16 of Decree 100/2015/NĐ-CP as amended by Clause a, Clause 10, Article 1 of Decree 49/2021/NĐ-CP)
(4) Lending for investment projects and buying houses in social housing projects, worker housing projects, renovation projects, and construction of old apartment buildings specified in Official Dispatch 2308/NHNN-TD in 2023 is as follows:
- Loan interest rate applies until June 30, 2023 for the developer is 8.7%/year;
- Loan interest rate applies until June 30, 2023 for homebuyers is 8.2%/year;
As of July 1, 2023, the SBV will announce the lending interest rate during the preferential period for commercial banks participating in the Program on a quarterly basis.
(5) The interest rates of the State Bank of Vietnam specified in Decision 1123/QĐ-NHNN in 2023 are as follows:
- Refinancing interest rate: 4.5%/year.
- Discount interest rate: 3.0%/year.
- Overnight lending rate in interbank electronic payments and lending to compensate for capital shortfalls in the clearing settlement of the State Bank of Vietnam for credit institutions, foreign bank branches: 5.0%/year.
What are the current interest rates for bank loans in Vietnam? - Source: Internet
What are the current interest rates for bank loans in Vietnam?
Pursuant to Article 1 of the Decision 1124/QĐ-NHNN in 2023 stipulating as follows:
Maximum interest rates of deposits in Vietnam Dong (VND) of organizations (except credit institutions and foreign bank branches) and individuals at credit institutions and foreign banks branches according to Circular No. 07/2014/TT-NHNN dated March 17, 2014 are as follows:
1. The maximum interest rate of demand deposits and deposits with a term less than 1 month is 0,5%/year.
2. The maximum interest rate of deposits with a term from 1 month to less than 6 months is 4,75%/year. Particularly, people's credit funds and microfinance institutions shall apply the maximum interest rate of 5,25%/year with respect to deposits with a term from 1 month to less than 6 months.
Pursuant to Article 1 of the Decision 578/QĐ-NHNN in 2023 stipulating as follows:
Interest rates of deposits in Vietnamese Dong (VND) made by Vietnam Development Bank, Vietnam Bank for Social Policies, people’s credit funds and microfinance institutions at the State Bank of Vietnam are as follows:
1. The interest rate of deposits made by Vietnam Development Bank: 0,5%/year.
2. The interest rate of deposits made by Vietnam Bank for Social Policies: 0,5%/year.
3. The interest rate of deposits made by people’s credit funds: 0,5%/year.
4. The interest rate of deposits made by microfinance institutions: 0,5%/year.
As regulations above, the current interest rates for bank loans in Vietnam are as follows;
- Maximum interest rates of deposits in Vietnam Dong (VND) of organizations (except credit institutions and foreign bank branches) and individuals at credit institutions and foreign banks branches:
+ The maximum interest rate of demand deposits and deposits with a term less than 1 month is 0,5%/year.
+ The maximum interest rate of deposits with a term from 1 month to less than 6 months is 4,75%/year.
+ Particularly, people's credit funds and microfinance institutions shall apply the maximum interest rate of 5,25%/year with respect to deposits with a term from 1 month to less than 6 months.
- The interest rate of deposits made by Vietnam Development Bank: 0,5%/year.
- The interest rate of deposits made by Vietnam Bank for Social Policies: 0,5%/year.
- The interest rate of deposits made by people’s credit funds: 0,5%/year.
- The interest rate of deposits made by microfinance institutions: 0,5%/year.
Can credit institutions and customers have an agreement on interest rate on loan in Vietnam?
Pursuant to Clause 14 Article 4 of the Law on Credit Institutions in 2010 stipulating as follows:
Interpretation of terms
In this Law. the terms below are construed as follows:
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14. Credit extension means an agreement allowing an organization or individual to use a sum of money or a commitment allowing the use of a sum of money on the repayment principle by such professional operations as lending, discount, financial leasing, factoring, bank guarantee and other credit extension operations.
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Pursuant to Article 91 of the Law on Credit Institutions in 2010 stipulating interests and charges in business activities of credit institutions as follows:
Interests and charges in business activities of credit institutions
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2. Credit institutions and their clients may agree on interest rates and credit extension charges to be applied to their banking operations according to law.
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According to the above regulations, credit institutions and customers have the right to agree on the loan interest rate in the loan contract of the credit institution in accordance with the law.
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