Commercial banks lower loan rates after SBV’s reduction

After the State Bank of Vietnam (SBV) decided to cut short term loan interest rates by 0.5 percent and management interest rates by 0.25 percent from July 10, commercial banks have started lowering their rates.

VPBank reduces 1% interest rate for businesses in five priority fields (Photo: SGGP)

VPBank reduces 1% interest rate for businesses in five priority fields (Photo: SGGP)

Many banks have announed loan interest rate cut for businesses operating in five priority fields stipulated by SBV including agricultural and rural development, exports, small and medium enterprises, support industry and hi-tech.
Specificially, Vietcombank has slashed short term rates by 0.5 percent for loans in the Vietnamese dong. VPBank has launched a preferential package to help super small and startup enterprises access loans with flexible procedures.
PvcomBank has applied the preferential rate of from 7.5 percent a year.
Meantime, some commercial banks have reduced loan interest rates for businesses in and outside the five priofity fields. Saigon Commercial Bank has cut the rate by 0.5 percent to all types of loans. ACB has provided a VND7 trillion credit packge for production and trading enterpries with lower than before interest rate in the two remaining quarters this year.
Mr. Nguyen Hoang Minh, deputy director of SBV in HCMC said that HCMC’s credit growth approximated 10 percent at the end of June compared to last yearend. Banks’ interest rate cut will boost credit growth in the second quarter so it might reach 18 percent at the end of 2017.

By HANH NHUNG – Translated by Hai Mien

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