How do loan interest rates differ between banks and financial institutions? Is there a significant disparity among credit organizations? What should be noted when comparing loan interest rates?
Comparing Loan Interest Rates at Banks and Financial Companies
Currently, the demand for business loans is prevalent, especially among young people. Banks are top choices for individuals seeking safe, transparent loans in accordance with Vietnamese law. To meet the growing demand for loans without requiring physical visits to branches, many banks have introduced online loan services via their apps.
As banks increasingly focus on fee-based services to boost non-interest income, borrowers must thoroughly research and compare loan interest rates at different banks before proceeding. Below is a comparison table of loan interest rates at various banks and financial companies in Vietnam.
Comparing Loan Interest Rates at Banks
Private Banks
Private banks are fully privately-owned financial institutions. They operate under their own policies and strategies but are regulated by the State Bank of Vietnam regarding interest rates, loans, and other policies.
The table below compares interest rates at private banks for the two most common types of loans: unsecured and secured loans:
| Bank | Unsecured Loan Rate | Secured Loan Rate |
|---|---|---|
| Techcombank | 13.78% – 16.00%/year | 7.49%/year |
| VPBank | 16.0%/year | 6.9%/year |
| ACB | 17.9%/year | 9.0%/year |
| TPBank | 10.8% – 17%/year | 6.4%/year |
| HDBank | 24%/year | 6.8%/year |
| Sacombank | 9.6%/year | 8.5%/year |
| VIB | 17%/year | 8.3%/year |
| SHB | 15%/year | 8.5%/year |
| OCB | 21%/year | 5.99%/year |
| MSB | 9.6% – 15.6%/year | 5.99%/year |
From the table, it is evident that the lowest unsecured loan rates are offered by MSB and Sacombank, while the lowest secured loan rates are provided by MSB and OCB.
Foreign-Owned Banks
Foreign-owned banks are subsidiaries entirely owned by foreign commercial banks, with legal status established abroad but operating in Vietnam under the State Bank’s regulations.
Despite their foreign ownership, these banks offer competitive interest rates, establishing a strong market presence. Below is a comparison of interest rates at foreign banks:
| Bank | Unsecured Loan Rate | Secured Loan Rate |
|---|---|---|
| Hong Leong | 9% – 12%/year | 6.49%/year |
| HSBC | 15.99%/year | 6.49%/year |
| Public Bank | 7%/year | 8%/year |
| Shinhan | 0.7% – 1.1%/month | 7.7%/year |
| Standard Chartered | 17 – 18%/year | 6.49%/year |
| UOB | 13%/year | 8.7%/year |
| Woori | 6%/year | 7%/year |
| Citibank | 1.75%/month | 18%/year |
| ANZ | 13.43%/month | 6.5% – 8%/year |
The lowest unsecured loan rate is offered by Woori, while the lowest secured loan rates are provided by Standard Chartered, Hong Leong, and HSBC.
State-Owned Commercial Banks
State-owned banks fall into three main categories based on their purpose and function:
- State-owned commercial banks
- Policy banks
- Commercial banks with over 50% state ownership
Below is a comparison of loan interest rates at state-owned commercial banks:
| Bank | Unsecured Loan Rate | Secured Loan Rate |
|---|---|---|
| Vietcombank | 10.8% – 14.4%/year | 5% – 7.5%/year |
| Vietinbank | 9.6%/year | 7.5% – 7.7%/year |
| BIDV | 9%/year | 6.5% – 7.5%/year |
| Agribank | 13%/year | 7.5%/year |
| CB Bank | 6.9%/year | 6.88%/year |
| Ocean Bank | 15%/year | 5.9% – 6.5%/year |
| MBBank | 12.5% – 20%/year | 7.5%/year |
Comparing Loan Interest Rates at Financial Companies
Financial companies are non-bank credit institutions that utilize their own, raised, and other capital sources to provide loans and investments, offering financial advisory services and performing other functions as per legal regulations.
| Financial Company | Loan Interest Rate |
|---|---|
| Fe Credit | 21% |
| Home Credit | 19.92% |
| HD Saison | 17.88% |
| Prudential Finance | 18% |
| MCREDIT | 16.68% |
| Lotte Finance | 20.04% |
| Jaccs | 30.4% |
The financial company with the lowest loan interest rate is MCREDIT, while Jaccs has the highest.
Some Notes on Loan Interest Rates
- Banks with lower interest rates often have stricter approval criteria.
- The listed unsecured loan rates at financial companies apply only to customers with standard profiles. Customers not meeting these standards face higher rates.
- Banks typically require salary transfers for unsecured loans, while financial companies are more flexible, though they usually charge higher rates.
Understanding and comparing loan interest rates across banks and financial institutions is crucial for your financial planning. Carefully review the terms before applying. Be a smart consumer by making informed choices.
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