Major banks lower lending interests

Several large banks have lowered lending interest rates for businesses beginning from August 1 to December 31.

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Vietcombank announced that the interest for short-term loans that use VND is 5.5% a year, 1% lower than the State Bank's rate. Their programme is applied to the government’s five priority groups of agriculture businesses, producing goods for export, small and medium-sized enterprises, enterprises operating in support industries and high-tech enterprises including start-ups.

Vietinbank lowered the interest rate by 0.5% a year for VND short-term loans. Small and medium-sized firms, exporters and other businesses can also enjoy other credit programmes with preferential rates. BIDV has also lowered the rate by 0.5% a year. During this time, BIDV has launched two credit packages that worth a total VND70trn (USD3bn) with a lending rate that is 0.5% lower than the normal rate.

Many other banks also adjusted the lending rate from August 1.

Agribank and Techcombank lowered its lending rate by 0.5% while the Military Bank launched two lending packages for VND short-term loans.

This is the second time banks lowered lending rates this year. In early 2019, Vietcombank, BIDV, Agribank and Vietinbank had lowered their lending rates by 0.5% for businesses in specific sectors. Both the value and effect of the second adjustment will be much larger due to the participation of the private commercial banks.

According to Vietcombank, in order to be able to lower the lending rates to support businesses, the banks have to build plans for a more efficient management system, issue more services and improve risk management.

According to the State Bank, the loans from commercial banks accounted for 57% of the total loans. Lowering lending rates is a way for banks to help businesses, contribute to economic development and meet the demands for credit from now to the end of 2019.