In order to boost credit growth, banks have consecutively launched many credit support packages to stimulate demand but preferential interest rates only last for a short time. Meanwhile, the lending rate trend for individual customer segment tends to increase.
HDBank has just carried out preferential interest rate package at six percent fixed for the first two months or 8.5 percent/annum fixed for the first six months applicable to loans approved till the end of June 30, 2018 and disbursed till July 21, 2018 at the latest.
This interest rate preference is applied to customers who supplement business-production capital (including agricultural loan product), have 100 percent collaterals to be real estate and do not use the capital for the purposes of pawn business, capital contribution.
Meanwhile, from now till the end of December 15, 2018, Nam A Bank carries out the credit package of 2.5 trillion dong with preferential lending rate from just 6.88 percent/annum, and maximum lending duration of six months.
For the time being, BIDV regularly carries out lending programmes to support SMEs with the annual scale of 50 trillion dong.
Since the beginning of 2018, BIDV has continuously carried out short-term credit packages with competitive interest rates such as the 11 trillion dong preferential credit package to SMEs, the 10 trillion dong credit package for medium and long-term loans, the two trillion dong capital funding for start-up businesses in Hanoi.
Most interest support programmes are aimed at helping businesses be active in capital, developing business operations, but the reality shows that the preferential interest rates are only applied by banks for a very short time, maximum six months.
At the same time, lending rates for individual customer segment are showing signs of recovery. Typically, most banks have adjusted up interest rates for home loans by 1-2 percent/annum compared to the beginning of this year.
For example, VIB launched the programme on immediate ownership of a dream home with the preferential interest rates of 6.99 percent/annum for the first six months or 7.99 percent/annum within the first year, with maximum lending duration of 25 years.
However, the reality shows that after a short lending period, the bank added the interest rate margin of 3-4 percent/annum, which means lending rates for home loans are about 11-12 percent/annum.
According to banks, the increase in interest rates for home loans is because the deposit rates for long terms continue to go up.
Specifically, banks have to strengthen the mobilisation of idle capital, restructure capital sources, meeting the regulation on reduction of short-term capital used for medium and long term loans from 60 percent to 50 percent at Circular No. 06/2017/TT-NHNN at the beginning of this year and to 45 percent at the beginning of next year.
Director of individual customer division of a bank said savings rates still keep rising, so lending rates are difficult to decrease. That is not to mention, lending rates are mainly medium and long term, so the adjustment up is understandable.
Currently, lending rates for home loan and home repair at joint stock banks amounted to 12.5 percent/annum, up about two percent per annum from the previous period.
At the same time, with the fact that house and land price has recently increased quite sharply, banks have had the move of re-evaluating the price, and only approve loans that do not exceed 70 percent of value.
Along with the interest rate increase, banks also tighten the preferences and raise the penalties for interests paid before the maturity.
Facing the situation that banks are cautious and do not exclude the possibility of tightening real estate credit, many experts suppose said this will strongly affect home buyers.
Finance and banking expert Nguyen Tri Hieu said raising lending rates in real estate sector along with tightened regulation on lending cause disadvantages, limiting the repayment ability of customers.
