Many banks continuously introduce loan packages to support early repayment of loans from other banks with competitive interest rates, along with a commitment to automatically pay off old outstanding balances for customers. The applicable interest rates range from 5% - 8%/year, depending on the loan term and approval conditions of each customer.
Loan interest rates are unexpectedly lower than deposit interest rates.
More than a year ago, Circular 06 of the State Bank officially took effect, adding regulations allowing credit institutions (CIs) to consider and decide to lend to customers to pay off debts at other CIs for the purpose of serving living needs.
In the "race" to lend to customers to pay off their debts early at other banks, banks with large scale, reputable brands, low input capital costs, and effective appraisal and disbursement processes will have a significant advantage.
Typically, Agribank has just launched an attractive loan interest rate, which is even considered "unbelievably low". The bank's short-term loan interest rate is currently equal to the 3-11 month savings deposit interest rate at Agribank, ranging from 2.5% - 3.5%/year.
Specifically, from now until December 31, 2025, businesses borrowing capital from Agribank to repay debts early at other credit institutions will enjoy preferential interest rates: Short-term loan interest rates from only 2.4%/year. Medium and long-term loan interest rates from 6.0%/year, with a fixed interest rate period of up to 24 months.
The maximum loan limit is equivalent to the principal balance at other credit institutions. For medium and long-term loans that have not been fully disbursed, Agribank will continue to disburse the remaining amount according to the limit previously granted to the customer by the credit institution. In addition, short-term loan customers can also enjoy preferential policies on collateral according to the bank's regulations from time to time.
According to research, Agribank's short-term loan interest rate is currently lower than the 6-month deposit interest rate of most joint-stock commercial banks. Meanwhile, medium and long-term loan interest rates are only equal to the deposit interest rates of many other banks.
Currently, many banks are implementing loan packages to support customers to pay off their debts early at other banks, with interest rates ranging from 5% - 8%/year, depending on the loan term and conditions of each customer.
In fact, after the new Circular took effect, banks continuously launched preferential loan packages to attract customers. However, although the interest rate for early repayment loans seems attractive, the procedures are a major obstacle. Many banks require customers to pay off their old loans themselves, transfer the collateral to re-mortgage, and fully complete the appraisal process and borrow capital at the new bank.
Not to mention, customers also have to pay a penalty fee for early repayment, usually from 0.5% - 2%, or even higher depending on the regulations of each bank. In addition, a series of other costs also arise, including: red book mortgage release fee, new mortgage registration fee, notary fee, new loan insurance fee, etc.
Transferring collateral from the old bank to the new bank also takes a lot of time and money. To be approved for a loan, customers need to have a good repayment history according to data from CIC and prove a stable source of income to ensure the ability to repay the loan.
Competition is getting fiercer.
Currently, many commercial banks are actively implementing preferential credit packages to promote credit growth from the beginning of 2025. The State Bank of Vietnam sets a target of 16% credit growth for the entire system, higher than previous years, in the context that the Government expects GDP to increase by about 8%.
To promote capital disbursement, while the group of good customers is increasingly scarce due to the economic situation, banks are actively implementing programs for early repayment of loans at other banks with more flexible and open conditions.
According to experts, with preferential policies and flexible support procedures, banks are making efforts to attract customers to achieve credit growth targets. Dr. Le Xuan Nghia commented that real estate is still an important disbursement channel, especially the housing segment serving real needs.
Previously, home loan customers had to pay high interest rates. Now, with other banks' early repayment policies and competitive interest rates, the race to attract customers among banks is increasingly fierce.
Many customers, after the preferential interest rate period at the old bank ends, have to pay floating interest rates of up to 11-12%/year. Meanwhile, the preferential interest rate in the first phase when switching to a new bank is only 5-7%/year.
This difference is significantly higher than the prepayment penalty fee, making many customers willing to accept the penalty fee to benefit from the new loan policy.
Source: https://baodaknong.vn/ngan-hang-chay-dua-thu-hut-khach-vay-de-tat-toan-no-tai-to-chuc-khac-243288.html
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