Personal loans rise amid rate cap slump
Personal loans rise amid rate cap slump
Banks are offering lower interest rates on personal loans as interest-rate caps have fallen to 11 per cent.
The Viet Nam International Commercial Joint Stock Bank (VIB), for instance, has launched a credit package of VND1 trillion (US$47.8 million) with an interest rate of 14.2 per cent per year for the first three months for loans to purchase, build and repair houses.
The bank will provide loans of up to 70 per cent of the value of collateral for a maximum 25-year term.
The Joint Stock Commercial Bank for Foreign Trade of Viet Nam (Vietcombank) has set aside VND2 trillion (US$95.7 million) to provide preferential loans for individual customers and business households.
The bank will offer loans of up to a 12-month term at 14 per cent per year for loans to buy, build and repair houses to live in or lease.
In addition, HSBC Vietnam is offering loans with collateral to buy houses at zero interest rate for the first month and 15.5 per cent from the second month.
Borrowing demand has increased as interest rates have fallen, Godfrey Swain, head of retail banking and wealth management for HSBC Vietnam, was quoted as saying in the Saigon Tiep Thi newspaper.
Richard Harris, head of retail banking for VIB, said one of the reasons that the bank offered such preferential interest rates was to attract new loans from existing customers and new customers from other banks that cannot provide big loans. — VNS
The interest rates for property personal loans at many banks stand at around 17.5-19 per cent per year, he said, adding that with the downward trend of interest rates, banks should cut rates further if they want to attract customers
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