Loan interest rate of some banks in Vietnam
Bank loan is a form of borrowing where customers can go to a bank to borrow a specific amount of money for personal purposes. For bank loans, the factor that customers are most concerned about is the current interest rate.
1. What is the bank loan interest rate?
The bank loan interest rate is the amount that the bank charges customers for borrowing money. This is an additional fee on top of the amount the customer borrows, calculated based on a percentage of the borrowed amount and the loan term.
Bank loan interest rates will vary between banks, but they still must adhere to the regulations set by the central bank regarding not exceeding the maximum lending interest rate determined by the Governor of the State Bank of Vietnam for each period to meet certain capital needs.
2. Methods of bank loans
There are 2 main methods of bank loans: Unsecured loans and Secured loans.
Mục lục
Unsecured Loans
This is a form of borrowing that does not require collateral or guarantee, and the lending institution will rely entirely on the borrower’s credibility and repayment capacity to determine the loan amount and term. Credibility will be verified through income and credit checks of the borrower.
Advantages
Borrowers do not need to use assets as collateral, nor do they require the guarantee of any organization or company. The bank will disburse the loan amount based on employment contracts or salary statements in a short period.
Disadvantages
- High risk of default, limited loan amounts, and short loan terms.
- High loan interest rates.
Secured Loans:
This is a form of lending that requires the borrower to use their own assets as collateral for the obligation. Borrowers can use assets such as houses, land, or other items to secure the loan.
During the collateralization process, borrowers still have the right to use these assets as usual. However, ownership documents of the assets will be held by the bank, and borrowers will only receive them back once the loan is fully repaid.
Advantages
Users can borrow a very high amount depending on the collateralized assets, with longer loan terms and lower interest rates compared to unsecured loans.
Disadvantages
Borrowers are required to have collateral, the transaction processing time is longer, the loan amount depends on the collateralized assets, and if unable to repay the debt, borrowers will lose the collateralized assets to the bank.
3. Interest rates for some banks in Vietnam
The current interest rates for bank loans in Vietnam typically range from 4% to 24% per year, varying depending on the loan type (unsecured/secured), the bank, and any promotional interest rate offers. Generally, for unsecured loans, the interest rates range from 6% to 24% per year, while for secured loans, the rates range from 4% to 11% per year.
Here are the interest rates for some banks in Vietnam as of April 2024 (for a 12-month term):
Interest rate of Domestic bank
Bank | Unsecured loan (%/year) | Secured loan (%/year) |
| Agribank | 7.0 – 17 | 6.5 – 7.5 |
Techcombank | 13.78 – 16 | 5.99 – 12.99 |
VPBank | 14 – 20 | 6.9 – 8.6 |
| ACB | 12.5 – 20 | 6.9 – 12 |
TPBank | 8.7 – 17 | 6.4 – 12.03 |
| HDBank | 13 – 24 | 6.6 – 10.6 |
Sacombank | 9.6 – 18 | 7.49 – 12 |
| VIB | 16 – 18 | 7.8 – 11.4 |
SHB | 8.5 – 17 | 6.99 – 10 |
| OCB | Từ 20,2 | 5.99 – 9.5 |
MSB | 9.6 – 18 | 5.99 – 9.1 |
| Vietcombank | 10.8 – 14.4 | 7 – 9 |
Vietinbank | 9.6 | 7.7 – 8.5 |
| Bản Việt | 14.9 – 20.5 | 8.49 – 14.8 |
BIDV | 11.9 | 7 – 9 |
| MB Bank | 12.5 – 20 | 6 – 9.5 |
Interest rate of 100% FDI Bank
Bank | Unsecured bank (%/year) | Secured bank (%/year) |
HSBC | 15.99 | 6.49 |
| Public Bank | Từ 7 | 8 |
Shinhan | 8.4 – 13.2 | 7.7 |
| UOB | 13 | 8.7 |
Woori | Từ 6 | 7 |
| Citibank | 14.76 – 20.96 | 18 |
The above information provides details on bank loan interest rates up to April 2024. Businesses can refer to these rates to choose suitable banks and loan terms for their investment activities.
If there is a need for investment consultancy, project financing advisory, or bank introduction services, please contact VKI here or leave your information below. VKI will assist clients at their earliest convenience.
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