Accordingly, the short-term lending interest rate for a number of priority sectors and fields under the direction of the Government and the State Bank announced by Agribank is 4.0%/year.

The normal short-term loan interest rate is at least 5%/year; the normal medium and long-term loan interest rate is at least 6%/year.

The lending interest rate for consumer loans via credit cards is 13%/year, this is the highest lending interest rate at Agribank in March 2024.

Thus, the average lending interest rate at Agribank is 7.47%/year.

The bank said the average cost of capital is 6%/year. Of which, the average mobilization interest rate is 4.2%/year, other costs (including required reserves, liquidity reserves, deposit insurance, operating costs) are 1.8%/year.

With the above average lending and deposit interest rates, the current interest rate gap between lending and deposit is 1.47%/year. This is considered the lowest gap in the current banking market, while the gap at commercial banks is usually 3-4%.


INTEREST RATES FOR MARCH 2024 AT AGRIBANK
CONTENT INTEREST RATE
Short-term lending interest rates for some priority industries and sectors under the direction of the Government and the State Bank 4%/year
Typical short-term loan interest rates 5%/year (minimum)
Normal medium and long term loan interest rates 6%/year (minimum)
Credit card interest rates 13%/year
Average loan interest rate 7.47%/year
Weighted average cost of capital 6%/year
Average interest rate 4.2%/year
Other expenses (including Required Reserves, Payment Reserves, Deposit Insurance and Operating Expenses) 1.8%/year
Difference between deposit and lending interest rates 1.47%/year

Agribank is also a pioneer in implementing preferential credit packages according to the policies of the Government and the State Bank.

Most recently, this bank announced to continue implementing a credit package of 8,000 billion VND of preferential credit capital for the forestry and aquaculture sectors. The preferential interest rate is at least 1-2% lower per year than the average lending interest rate for the same term.

By publicly disclosing lending interest rates, average lending interest rates and the difference between lending and deposit interest rates, this is the first time Agribank has published information under the direction of the Prime Minister and the State Bank.

Previously, the State Bank required credit institutions to announce average lending interest rates, the difference between average deposit and lending interest rates, lending interest rates for credit programs, credit packages and other types of lending interest rates (if any) according to the direction of the Prime Minister and the State Bank.

Before Agribank, BIDV was the first bank in the Big4 banking group to do this.