Banks reduce interest rates, offer new loans for storm-affected customers
Several private and State-owned banks have reduced interest rates and offered debt relief for customers affected by Typhoon Yagi.
The preferential measures are implemented under the guidance of the State Bank of Vietnam to reduce the financial burden on individual customers, help businesses overcome a difficult period, and create momentum for economic recovery.
VPBank has launched an interest rate reduction programme for individual customers with existing loans and collateral, who live in provinces and cities directly affected by the storm such as Quang Ninh, Hai Phong, Hanoi, Thai Nguyen, and Yen Bai.
From now until December 31, 2024, medium and long-term loans will have their interest rates reduced by 1 percentage point, while short-term loans will be reduced by 0.5 percentage point.
The bank also offers loan packages with a fixed interest rate of only 6.5% per year for the first 12 months, for customers who need to borrow to buy real estate, build or repair houses, or repay other bank loans.
MSB Bank has also reduced its interest rate by 1 percentage point per year for businesses with existing loans, with a loan term of up to 60 months.
New customers who are business owners will be offered unsecured loan packages of up to VND2 billion (US$81,800) with interest rates starting from 11.5% per year, and mortgage loan limits of up to VND20 billion (US$816,400) with interest rates starting from 5.8% per year.
For small businesses, MSB offers loan packages with interest rates from only 4.99% per year, and mortgage loan limits of up to VND6 billion (US$244,400). Loan terms can be extended up to 36 months, creating favourable conditions for businesses to reinvest and grow.
TPBank is running a programme to reduce up to 50% of the current interest payable for individual customers affected by Typhoon Yagi until January 31, 2025.
This is a relief package of up to VNĐ2 trillion ($81.48 million), applicable for the northern provinces and cities of Quang Ninh, Hai Phong, Hanoi, Cao Bang, Tuyen Quang, and Lao Cai.
In addition, the bank also provides many preferential loan packages with fixed interest rates – from 6.8% per year for the first 12 months, to 8.8% per year for 36 months – helping customers stabilise their financial plans in the long term.
ACB Bank also decided to reduce interest rates by 1-2 percentage points per year for individual customers directly affected by the storm.
It will apply an interest rate of only 6% per year for new loans to support businesses and household businesses.
State-owned commercial banks such as Vietcombank, BIDV, VietinBank and Agribank have also announced interest rate reductions for existing loans, while applying preferential interest rates for new loans.
Specifically, Vietcombank is planning to reduce interest rates by 0.5 percentage point for nearly 20,000 existing and new business loans until December 31, while it has already held an outstanding loan balance of about VND130 trillion.
A representative from VietinBank said the bank is assessing the overall damage caused by Typhoon Yagi to their customers. Those who have purchased insurance from the bank will receive compensation as soon as possible, if eligible.
Agribank Deputy General Director Doan Ngoc Luu said that apart from reducing interest rates, the bank has also directed ABIC Insurance company – their subsidiary – to quickly carry out support and compensation procedures for customers affected by the super typhoon.
“Agribank has also sent working groups to affected areas to assess the damage our customers are facing,” he said.
“We will assess the affected outstanding debt and the possibility of debt restructuring, adjust interest rates for old loans, and provide new loans to help our business customers recover and resume operations.”
