(NLDO) – Despite the increase in deposit interest rates, the loan interest rate level has decreased compared to the beginning of the year and businesses can borrow to invest in projects at record low interest rates.
On December 18, VPBank announced that it had just joined the indirect lending program of the Small and Medium Enterprise Development Fund (SMEDF), with short-term lending interest rates of only... 1.2%/year (under 12 months) and medium and long-term lending rates of 4.4%/year (under 7 years). The lending limit is up to 80% of the total capital that the enterprise invests in the project.
These interest rates are fixed throughout the loan term. Medium and long-term loans have a principal grace period of up to 2 years. "Enterprises only need to prepare a minimum of 20% of the total initial investment capital and will receive a loan from the fund up to 80% of the investment/business plan. The assets secured for the loan are diverse, including real estate, means of transport, and valuable papers," said a bank representative.
The purpose of a business loan can be to supplement working capital, purchase fixed assets or build a factory. In particular, the top priority is for businesses to borrow capital to invest in new machinery and equipment for production and business activities.
Banks are implementing many preferential interest rate credit packages for businesses at the end of the year. Particularly, the indirect lending program of the Small and Medium Enterprise Development Fund (SMEDF) has a short-term loan interest rate of 1.2%/year.
In addition, innovative startups, enterprises participating in industry clusters and value chains in the fields of manufacturing, agriculture, forestry, industry, fisheries, construction with annual revenue of less than 200 billion VND... are also given priority to access this preferential capital source.
According to the State Bank of Vietnam, as of December 13, credit in the entire economy increased by about 12.5% compared to the end of 2023. Credit is focused on production, business, and priority sectors. Notably, although deposit interest rates have increased, lending interest rates continue to remain low.
According to interest rate reports of commercial banks, the current lending interest rate continues to decrease by about 0.96%/year compared to the end of last year.
Agribank said that since the beginning of the year, the bank has adjusted the lending interest rate floor four times with a reduction of 1-2.5 percentage points - much higher than the reduction in deposit interest rates. By November 30, Agribank's average lending interest rate had decreased by about 1.5 percentage points compared to the beginning of the year - a deeper decrease than the average reduction rate of the entire banking system (0.96%/year).
Currently, Agribank's normal lending interest rate floor is only from 5%/year for short term and from 7%/year for medium and long term. The bank is lending medium and long term for development investment with a fixed interest rate of up to 24 months from 5.5%/year; implementing a variety of preferential credit programs with a total scale of 250,000 billion VND with an average interest rate 2-3 percentage points lower than the normal interest rate...
SMEDF is a state financial fund under the Ministry of Planning and Investment. From 2019 to present, SMEDF has performed 4 main functions: capacity building support, financing, direct lending and indirect lending.
Source: https://nld.com.vn/mot-ngan-hang-bat-ngo-tung-goi-cho-vay-lai-suat-12-nam-196241218144724331.htm
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