Many banks reduce interest rates

Thursday, 26/08/2021, 23:49 [GMT+7]

Many banks reduce interest rates

Many banks have been implementing policies to reduce lending interest rates and fees to support businesses and people. In particular, some banks offer preferential packages for customers in the area of blockade and isolation according to Directive 16 of the Prime Minister.

Many borrowers given interest rate reduction
 
From July 15, Vietcombank Khanh Hoa has reduced interest rates from 0.5%/year to 1%/year for all existing loans, specifically: 1%/year reduction in lending interest rates for corporate customers directly affected by the Covid-19 epidemic and 0.5%/year for the remaining corporate customers. Individual customers borrowing capital for production and business are given to an interest rate reduction of 1%/year; consumer loans are reduced by 0.5%/year. This policy will last until December 31. “11,552 customers will be given interest rate reduction in this period with a total loan balance of 8,100 billion VND, accounting for 60% of Vietcombank Khanh Hoa's total outstanding loans. The total profit the bank branch has decreased for customers from the beginning of 2021 to now is 32 billion VND, which is directly deducted from the profit of the bank branch," said Ho Thi Mai Trang – Corporate Banking Manager of Vietcombank Khanh Hoa.
 
HDBank has also announced to reduce lending interest rates by 1%/year on average and up to 2%/year for businesses and individuals operating in fields directly affected by the Covid-19 epidemic. 
 
BIDV reduced the lending interest rate for existing outstanding loans by 1%/year on average, some groups of difficult customers with the maximum reduction of 2%/year compared to the current interest rate. Customers directly affected by the Covid-19 epidemic (accommodation, restaurant services, resorts, hotels, transportation...); customers at branches in epidemic areas, enterprises producing essential goods, enterprises with large labor force and customers suffering decrease in business activities will be entitled to a preferential interest rate reduction from July 15 to the end of this year.
 

 

At BIDV Khanh Hoa
At BIDV Khanh Hoa
 
Launching incentive packages
 
In addition to reducing interest rates for existing loan packages, many banks also implemented new loan packages with preferential interest rates to support and accompany businesses and individuals to overcome the Covid-19 pandemic, strengthen production - business and stimulate economic growth.
 
According to the latest announcement of BIDV, this bank offers short-term loans (with a maximum loan period of 12 months) with an interest rate reduction of up to 1.5% per year compared to the normal interest rate. Previously, BIDV launched the program "Accompanying the medical sector, joining hands to overcome the pandemic" with a maximum support cost of up to 1,670 billion VND for medical staff working at hospitals and medical facilities nationwide. HDBank has implemented a preferential loan package with interest rates to support businesses operating in the field of supplying pharmaceuticals and medical equipment and supplies.
 
In addition, banks have also exempted and reduced a series of fees to support people and businesses, and encourage non-cash payments in the complicated situation of the epidemic. From August 1 to December 31, Vietcombank Khanh Hoa reduced a series of service fees on all channels: transaction counters, ATMs, Digibank, iB@nking... ; and reduce 80% of money transfer fees in the same bank, 25% of money transfer fees outside the bank, up to 34% discount on Vietcombank Eco and Vietcombank Plus account packages…
 
VietinBank also supports exemption and reduction of many types of service fees for customers affected by the Covid-19 epidemic such as international payment fees and trade finance for corporate customers operating in the field of pharmaceuticals, medical equipment and supplies; exempting and reducing VND transfer fees inside and outside the system, paying salaries, paying the State budget...
 
Do Trong Thao - Deputy Director of the State Bank of Khanh Hoa branch said that many branches of credit institutions in the area have reduced operating costs in order to actively reduce lending interest rates for old loans. Credit institutions also apply many policies to exempt and reduce fees to encourage customers to make online transactions and make non-cash payments to limit the spread of the disease; have proactive and flexible solutions to ensure smooth banking operations during the local implementation of social distancing in accordance with Directive 16 of the Prime Minister.
 
Mai Hoang
 
Translated by T.T