Vietnam - Vietnam joint stock banks start to lower lending interest rates

Following state-owned commercial banks' move, some commercial joint stock banks has started to lower lending interest rates to 15-16.5 percent per year.

In late last week and early this week, some commercial joint stock banks have started launching new lending incentives with more clearly competitive lending interest rates in comparison with the lending rates offered previously by the state-owned banks at 14-17 percent per year.

At Southeast Asia Commercial Joint Stock Bank (SeABank), the previous lowest loan rates for prioritised groups have fallen sharply and marked the second adjustment since after the State Bank of Vietnam (SBV)'s decision to reduce the key rates from April 11.

Particularly, SeABank's Cong Hoa branch has said that the bank has launched incentives to support small and medium sized enterprises (SMEs) with short term loans for the purpose of processing, production and business in services and agriculture sectors and special incentives for export and import activities or production activities to serve exports.

Accordingly, prioritised borrowers can access the bank's short term loans, trade finance and L/C discount at the interest rate of 16.25-16.5 percent per year, or 2 percent lower than the bank's current interest rate benchmark for other firms.

At HCM City Development Joint Stock Commercial Bank (HDBank), from April 21, the bank launched "preferential lending interest rate programme for exporters and importers" whereby these borrowers will enjoy the loan rate of only 16 percent per year. The total credit line is up to one trillion dong.

Accordingly, enterprises that are in need of capital to support the working capital for paying for imports of goods and materials or production, processing and business in export and import sector will be financed at the preferential interest rate of 16 percent per year by HDBank and the maximum loan term of six months.

The beneficiaries from HDBank's incentive programme will include all exporters and importers nationwide who meet loan conditions of HDBank. The programme will last till July 31, 2012.

More attractively, Saigon - Hanoi Commercial Joint Stock Bank (SHB) announced a lending programme for corporate customers that are SMEs, households and businesses in sectors of agriculture and rural development and export in 2012 with really competitive interest rates.

Notably, SHB's maximum lending rate is 15 percent per year, applicable for capital borrowing demand to support the working capital and serve business and production as well as purchase of goods and materials for production and businesses, market expansion and distribution channel development. The total credit line is up to five trillion dong.

The maximum lending rate of 15 percent per year as announced by SHB is considered the most competitive lending interest rate amongst non-state commercial banks so far.

The reduction of lending interest rates to the maximum 15 percent and 16-16.5 percent per year showed that some commercial joint stock banks have further lowered lending interest rate as an initiative to attract the best customers in the prioritised group while the lowest lending interest rate for other demands is still from 18.25 percent per year.

VietBiz24

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