Headlines 21/03/2020 11:15 SA

Short-term loan interest rate ceiling is decreased

Kiều Nga

State Bank of Vietnam has recently issued the Decision No. 420/QD-NHNN on maximum interest rates applied to Vietnamese-dong short-term loans according to clause 2 of Article 13 in the Circular No. 39/2016/TT-NHNN dated December 30, 2016.

According to this Decision, maximum interest rates of Vietnamese-dong loans intended for agricultural and rural development; export trading; business of small and medium enterprises, high technology enterprises; development of supporting industries will be as follows:

- Credit institutions and foreign bank branches (except people’s credit funds and microfinance institutions) will apply the maximum interest rate of 5.5%/year to Vietnamese-dong short-term loans (decreased by 0.5% compared to formerly).

- People’s credit funds and microfinance institutions will apply the maximum interest rate of 6.5%/year to Vietnamese-dong short-term loans (decreased by 0.5% compared to formerly).

Interest rates applied to credit contracts or loan agreements signed by March 17, 2020 in accordance with laws in effect on dates of conclusion of these contracts or agreements will remain unchanged.

The Decision No. 420/QD-NHNN is in force from March 17, 2020, replacing the Decision No. 2416/QD-NHNN dated November 18, 2019.

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