Lenders in Vietnam ready to make home loans

Despite the current high lending rates at local banks, homebuyers have still had many opportunities to obtain home loans at affordable rates.

After a long time of saving money, Quoc, a resident in HCMC’s Binh Thanh District, has decided to buy an apartment in Thu Duc District with a total value of over VND1 billion. A small commercial bank has agreed to provide him with a loan accounting for 60% of the condo’s value with an annual rate of 17%. The lender asks for a simple loan application but Quoc has yet to apply for the disbursement as he has found out that numerous banks offer much lower lending rates, with certain banks quoting the rate at a mere 12%.

The fact shows that loan rates of local banks are different. Many big lenders have revised down their lending rates to below 14% per annum, while smaller banks either restrict lending or provide loans with rates of 16-17%.


Meanwhile, a number of small banks don’t announce lending rates for home loans publicly but they still disburse money upon customers’ requests. But interest rates of these banks are higher than other lenders.

An apartment building project on Nguyen Huu Tho Street in HCMC’s outlying district of Nha Be - Photo: Dinh Dung

According to the director of the Tan Binh Branch of a small bank, the interest rate at her bank is 17% a year and borrowers can take out credit by handing in land, homes or assets as collateral. She ascribed the bank’s high loan rates to its liquidity problem at the moment.

Regarding the aforesaid high lending rates, Trinh Van Tuan, chairman of Orient Commercial Bank (OCB), noticed the annual average deposit rate stands at 12-13% at multiple small banks.

Therefore, he said, lending rates of those banks have also been adjusted accordingly. A number of credit institutions have a vast array of supporting programs to lure customers but they also tighten lending conditions, he added.

Meanwhile, large numbers of big lenders holding ample capital but failing to lend out on the inter-bank market are seeking ways to disburse loans, including Bank for Foreign Trade of Vietnam (Vietcombank).

Nguyen Phuoc Thanh, general director of Vietcombank, said his bank over the past few months had considerably slashed lending rates to attract borrowers.

Vietcombank offers an annual rate of 12% for the first year, with rates of the following years set in line with savings rates. Regardless of the low rate, the bank had only disbursed a combined VND1 trillion as of late last month after launching a credit line of VND2 trillion for home loans a few months ago.

Similarly, Vietnam Export Import Commercial Bank (Eximbank) has set aside VND5 trillion for home loans at 12% per year. Eximbank borrowers will enjoy a fixed rate of 12% in the first three years, with the rate in the following years being the savings rate plus two percentage points.

ANZ also offers home loans with rates 2-3% lower than the normal level at the bank, allowing customers to take out loans having a term of 20 years and accounting for up to 100% of the mortgaged asset.

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