Bank interest rates continue to decrease, supporting customers to borrow capital

Cool down deposit interest rates

Updated data from the State Bank shows that as of March 3, 10 commercial banks have announced a reduction in their listed interest rates at the counter and 7 banks have continued to reduce online deposit interest rates and some incentive programs.

Specifically, VietABank and PGBank have both reduced interest rates for long-term deposits starting today. VietABank's interest rates for 12-36 month deposits will decrease by 0.1% per year to between 5.4-5.7% per year when deposited at the counter and between 5.7-6% per year when deposited online. Meanwhile, PGBank's interest rates for 24- and 36-month deposits will also decrease by 0.2% per year to 5.7% per year.

In addition, Vietnam Export Import Commercial Joint Stock Bank (Eximbank) also continued to reduce interest rates by 0.1% for online deposits with terms of 6 and 9 months, listed from 5.2 - 5.4%/year. This is the second time Eximbank has adjusted interest rates following the direction of the Government, Prime Minister and State Bank.

Previously, on February 25, Eximbank reduced interest rates for a number of programs such as: "Long-term deposit with peace of mind" reduced interest rates by 3% for 15-month terms, reduced interest rates by 0.4% for 18, 24, and 36-month terms; "Prosperous Savings 50+" program reduced interest rates by 0.1% for 6 and 12-month terms; Online deposit program on weekdays and Online deposit program on weekends (Saturday and Sunday) reduced interest rates by 0.1% for 6, 9, and 12-month terms, reduced interest rates by 0.3% for 15-month terms, reduced interest rates by 0.4% for 18, 24, and 36-month terms.

Many other banks such as BVBank, MSB, Viet Nam Thuong Tin Commercial Joint Stock Bank, Saigon Bank for Industry and Trade, VIB, Bao Viet Commercial Joint Stock Bank, Kien Long Commercial Joint Stock Bank, Bac A Commercial Joint Stock Bank... also recorded interest rate reductions ranging from 0.1 - 0.4%/year depending on the term. Of which, Kienlongbank had the strongest reduction of up to 0.7% for the 60-month term, BVBank adjusted the reduction from 0.1 - 0.4% for deposits from 6 to 60 months.

The adjustment to reduce deposit interest rates reflects the management trend of banks to optimize capital costs, create conditions to continue lowering lending interest rates, and support customers to access capital sources at more reasonable costs.

Increasing the supply of cheap capital

Along with adjusting deposit interest rates down to help reduce capital costs, banks are also stepping up the implementation of preferential loan packages with attractive interest rates to help increase cheap capital sources, in order to stimulate credit demand, especially in the real estate sector.

Accordingly, Loc Phat Commercial Joint Stock Bank (LPBank) has just announced a VND5,000 billion loan package with a starting interest rate of 3.88%/year in the first 3 months, allowing loans of up to 100% of capital needs with a maximum term of 35 years. Similarly, Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) has launched a VND30,000 billion credit package with a record loan term of 50 years, an interest rate of 4.5%/year in the first 3 months and a maximum principal grace period of 5 years.

Similarly, Kienlong Commercial Joint Stock Bank (Kienlongbank) also launched a VND3,000 billion credit package with interest rates starting from 0%, targeting individual customers, especially young people under 35 years old, to support home buying, consumption and production and business.

Previously, Saigon - Hanoi Commercial Joint Stock Bank (SHB) also launched a VND16,000 billion loan package with an interest rate of only 3.99%/year in the first 3 months, allowing customers to borrow up to 90% of the asset value and exempt principal repayment for 5 years. Or at Asia Commercial Joint Stock Bank (ACB), the "First Home" loan package for young people was announced with a long loan term of up to 30 years, a fixed interest rate for the first period of up to 5 years and a preferential loan interest rate of 5.5%/year.

Meanwhile, at Tien Phong Commercial Joint Stock Bank (TPBank), a series of preferential loan programs with interest rates from 4.7%/year are being implemented, applied for many purposes such as business, home purchase and car purchase. The credit package has a total limit of up to 1,000 billion VND, targeting individual and corporate customers, especially those who borrow for business at TPBank for the first time or have large transactions.

These programs are expected to not only help reduce the financial burden on borrowers but also contribute to promoting the recovery of the real estate market.

Economist Dinh Trong Thinh assessed that preferential loan packages from banks can help young people access housing more easily. However, he also noted that preferential interest rate policies are only part of the home ownership problem, more importantly, it is still the balance between income and real estate prices.

"The current loan interest rate is quite attractive, but borrowers need to carefully consider the terms after the preferential period, especially the floating interest rate and related costs to avoid financial pressure later. At the same time, banks need to clearly announce the floating interest rate calculation mechanism for the following periods so that borrowers can assess their long-term financial capacity," Mr. Thinh recommended.

Although preferential credit programs are highly appreciated, according to Dr. Can Van Luc, Chief Economist of the Bank for Investment and Development of Vietnam (BIDV), interest rates are not the deciding factor in whether young people can own a house. He said that current real estate prices are far beyond the financial capacity of many people, so without a suitable supply, reducing interest rates will make it difficult for buyers to access housing.

Recently, Prime Minister Pham Minh Chinh signed Directive No. 05/CT-TTg dated March 1, 2025 on key tasks and breakthrough solutions to promote economic growth and accelerate disbursement of public investment capital, ensuring the national growth target in 2025 reaches 8% or more.

In particular, the Prime Minister's Directive requires the State Bank to operate monetary policy proactively, flexibly, promptly, effectively, closely and harmoniously coordinate with a reasonable, focused expansionary fiscal policy and other macroeconomic policies; in which, focusing on more effectively implementing tasks and solutions on interest rate management, exchange rate, credit growth, open market management, interbank market, refinancing, money supply, issuance of credit notes, etc.

At the same time, the State Bank is assigned to regularly monitor and closely supervise the developments in interest rates of mobilization and lending of commercial banks, and to implement more drastic and effective solutions within its authority to reduce the lending interest rate level, creating conditions for people and businesses to access loans at reasonable costs and low capital prices to restore and develop production and business, and promote economic growth.

Strengthen the effectiveness of inspection, examination, control and close supervision of the activities of credit institutions, especially the public announcement of mobilization interest rates, lending interest rates, and credit granting activities of credit institutions; promptly and strictly handle violations according to the provisions of law, especially credit institutions that compete unfairly and improperly on interest rates (both mobilization and lending interest rates); strictly prohibit commercial banks from freely increasing interest rates without direction, competing unfairly and unequally.

In addition, the Prime Minister also assigned the State Bank to study increasing the scale of the lending program for the forestry and fishery sector to about VND100,000 billion and expanding the scope of the program for the agriculture, forestry and fishery sectors. Continue to study and implement preferential credit packages to promote economic growth drivers and enable young people under 35 years old to buy houses.

Source: https://doanhnghiepvn.vn/kinh-te/lai-suat-ngan-hang-tiep-tuc-giam-ho-tro-khach-hang-vay-von/20250304084753174