Short-term loan interest rate in Vietnam to decrease to 5%/year from March 15, 2023

Short-term loan interest rate in Vietnam to decrease to 5%/year from March 15, 2023 (Internet image)

Regarding this issue, LawNet responded as follows:

On March 14, 2023, the State Bank of Vietnam issued Decision 314/QD-NHNN on the maximum short-term loan interest rate in Vietnam dong of credit institutions and foreign bank branches for borrowers to satisfy the capital requirements for certain economic fields and sectors according to Circular 39/2016/TT-NHNN.

Short-term loan interest rate in Vietnam to decrease to 5%/year from March 15, 2023

According to Decision 314/QD-NHNN, the maximum short-term loan interest rates in Vietnam dong according to clause 2 Article 13 of Circular 39/2016/TT-NHNN from March 15, 2023 are as follows:

- Credit institutions and foreign bank branches (except for People's Credit Funds and microfinance institutions) shall apply a maximum short-term loan interest rate of 5,0% per year.

(Compared to Decision 1813/QD-NHNN in 2022, the maximum short-term loan interest rate in Vietnam Dong is 5.5%/year)

- People's Credit Funds and microfinance institutions shall apply a maximum short-term loan interest rate in Vietnam Dong of 6,0% per year.

(Compared to Decision 1813/QD-NHNN in 2022, the maximum short-term loan interest rate in Vietnam Dong is 6.5%/year, which decreased by 1%

Interest rates applied to credit contracts and loan agreements from March 15, 2023 in Vietnam

Specifically, the interest rates stipulated by credit contracts or loan agreements concluded before the effective date of Decision 314/QD-NHNN shall continue to be applied according to such contracts and agreements in compliance with regulations of the law applicable at the time of their conclusion.

Decision 314/QD-NHNN takes effect from 15/3/2023 and replaces Decision 1813/QD-NHNN in 2022.

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