Hang, a corporate communications manager at HCMC, said the interest rate on the bank loan she took out to buy a house soared to 13.5% from more than 11% a year. Now, the interest she has to pay each month increases by several million dong ($1 = 24,800 VND).
The manager of a transport company in Hanoi said the interest rate on his company’s bank loan had risen 2.5 percentage points from the start of this year. “With a loan of almost VND 2 trillion, we will have to pay an additional interest of more than VND 50 billion every year,” he said.
A quick VnExpress A study observed that most banks, private and public, have raised retail lending interest rates by at least two percentage points from the start of this year. Some banks have even stopped offering preferential interest rates for the first year of personal loans, applying floating interest rates from the start.
Although interest rates on loans have risen sharply, it is not easy to borrow money as several banks have already reached the credit growth limit set for this year. The central bank said it would not increase the limit.
Vietnam has set its credit growth target at 14% for 2022. So far this year, credit growth has been above 10%.
Central bank governor Nguyen Thi Hong said it is difficult to lower loan interest rates in the coming times as many countries around the world are facing high inflation and exchange rate fluctuation, many central banks having recently raised interest rates and planning to raise them further.
Leaders of many commercial banks in Vietnam have also predicted that loan interest rates are unlikely to decline in the next few years; and that fluctuations will be highly dependent on liquidity, particularly the disbursement of public investments.
Meanwhile, several experts have pointed out that the average interest rate on loans has been low in previous years and is now increasing mainly due to increased demand for credit as the economy expands and as interest rates on deposits rise.
From January to October, the interest rate on 12-month deposits offered by public banks increased by 1 percentage point on average, and that offered by private banks increased by 1 to 2.7 percentage points. Some private banks have raised their interest rates on deposits to 8-9% per annum, and some even issue certificates of deposit with interest rates of up to 10% per annum.