Headlines 06/10/2020 11:51 SA

Short-term loan interest rate ceilings in Vietnamese dong continues to drop

Quý Tân

State Bank of Vietnam issues the Decision No. 1730/QD-NHNN on maximum interest rates on Vietnamese-dong short-term loans of credit institutions and foreign bank branches prescribed in clause 2 of Article 13 in the Circular No. 39/2016/TT-NHNN as follows:

- Credit institutions and foreign bank branches (except people’s credit funds and microfinance institutions) will apply the maximum interest rate of 4.5%/year to Vietnamese-dong short-term loans (0.5% less than the previous interest rate).

- People’s credit funds and microfinance institutions will apply the maximum interest rate of 5.5%/year to Vietnamese-dong short-term loans (0.5% less than the previous interest rate).

This means that the short-term loan interest rates are decreased by 0.5%/year compared to the latest interest rate prescribed in the Decision No. 920/QD-NHNN dated May 12, 2020.

The interest rates applied to credit contracts or loan agreements signed prior to October 1, 2020 will be the same as those prescribed in these contracts or agreements concluded in compliance with laws on the signature date.

Decision No. 1730/QD-NHNN is taking effect on October 1, 2020.

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