How do banks in Hai Duong calculate credit card interest rates?

Outstanding credit card loans are mainly concentrated in joint stock commercial banks without state capital.

Currently, the interest rate for loans via bank credit cards is commonly 22-25%/year, equivalent to 1.9-2.1%/month. This interest rate is calculated in 2 cases. Case 1, customers use this card to withdraw money directly from the ATM system, usually not exceeding 80% of the granted loan limit (depending on the regulations of each bank, each type of credit card) will be charged interest immediately upon withdrawal.

In case 2, customers who swipe their cards to purchase goods will enjoy an interest-free period, usually 44 days, from the date of the bank statement. For example, bank A closes its statement on the 20th of each month, and the payment is due 15 days later. Depending on the specific time of each month, the payment date is different, usually the 5th. Suppose a customer swipes a credit card to purchase goods on January 21, he will enjoy an interest-free period until March 5. However, if the customer swipes the card before January 20, he will only enjoy an interest-free period until February 5.

How to calculate credit card interest free period

Note that during the interest-free period, if the customer repays the entire loan, he/she will not incur any additional costs. If the customer only pays the minimum amount (according to the specific regulations of each bank), the remaining debt will be charged interest. If the customer pays less than the minimum amount, he/she will incur a late payment penalty fee. This penalty fee is usually 4-6% of the remaining minimum amount.

Credit card loan limit depends on each customer's profile and each bank's regulations. Usually from 30-70 million VND/card.

According to the report data from the State Bank of Vietnam, by the end of March 2024, the total outstanding credit card debt at banks in the province is estimated to reach more than 700 billion VND, down 1.6% compared to the end of 2023. Outstanding credit card debt is mainly concentrated in the group of joint stock commercial banks without state capital. Of which, Sacombank Hai Duong is the bank with the highest outstanding credit card debt with more than 160 billion VND, accounting for 22.8% of total outstanding credit card debt. Ranked second is VIB Hai Duong with more than 101 billion VND, accounting for 14.4%. Techcombank Hai Duong ranked third with nearly 100 billion VND, accounting for 14%.

HA KIEN

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