Bank loan interest rate is an important issue in the loan contract. In many cases, borrowers have to struggle to pay interests because they do not know the bank loan interest rate and related costs. Here are some shares to help you have an overview of interest rates and low interest bank loans.
What is bank loan interest rate?
Loan interest rate is the interest rate calculated on the amount of capital that the borrower must pay with the principal of the loan.
In banking business, lending interest rates are agreed upon by credit institutions and borrowers in accordance with the State Bank's regulations on lending interest rates at the time of signing credit contracts.
Loan interest rate is the cost of the loan expressed as a percentage of the loan amount over a specified time period (month, year). Loan interest rate is a compulsory content that the parties have to agree upon when signing a credit contract.
Currently, interest rates at banks usually range from 625% / year . But this interest rate depends on each bank, loan form, incentive, or interest calculation method.
Normally, for unsecured loans, the interest rate ranges from 1625% / year , while for mortgage loans, the interest rate ranges from 1012% / year.
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Interest rate on bank unsecured loans
The interest rate on a mortgage loan is usually fixed for the life of the loan. The method of calculating interest rates on bank loans in the form of unsecured loans is usually to calculate interest on decreasing outstanding loans. This is a favorable condition for the borrower.
The interest rate for borrowing money in the form of a preferential bank mortgage is about 1016% / year. When the offer ends, banks usually apply the interest rate of 1625% / year.
Table of interest rates for unsecured loans in some banks
Bank

Preferential interest rate (% / year)

Maximum limit

TechcomBank

16

300 million

Maritime Bank

15

500 million

Shinhan Bank

13.2

500 million

VPBank

20

500 million

Bank mortgage interest rate
When borrowing in the form of a mortgage, the interest rate will be fixed for the first time, then float to the interest rate of the market, most commonly with car loan and home loan products.
The current bank loan interest rates in the form of mortgage loans range from 10%  16% / year. Moreover, this form of loan is regularly deployed by banks with promotions and incentives on gifts and interest, so the interest rate applied during the first mortgage loan period is very low from 6 to 8.3. %/year.
Table of interest rates for mortgage loans at some banks
Bank 
Preferential interest rate (% / year) 
Level 
BIDV 
6  7.5 
100% of property assets 
Vietinbank 
7.7 
80% of demand 
Maritime Bank 
6.99 
90% of the property assets 
VIB 
8.2 
75  100% of the capital needs 
OCB 
5.99  6.99 
80  100% of real estate 
ABBank 
6.90  8.50 
90  100% of the special assets 
Note: The above interest rate is for reference only and will change from time to time. Customers can go to the bank branch to update the most accurate interest rate.
Types of loan interest rates
Lending rates are currently divided into 3 categories: fixed interest rate, floating interest rate and mixed interest rate. Each type of interest will be applied to different credit products.
Fixed interest rate
Fixed rate is the interest rate that will remain the same for the life of the loan. For example, the interest rate for loans in credit contracts is 10%, fixed for 5 years. In these 5 years, although the market interest rate fluctuates, increase or decrease, the lending rate remains the same. In practice, fixed interest rates usually apply to shortterm loans or unsecured loans.
● Advantages: Because the interest rate remains constant during the loan term, customers can calculate all the costs related to the loan in advance. Interest costs remain the same even when the market interest rates rise
● Disadvantage: The only disadvantage of fixedrate loans is that when the market interest rate falls, the interest rate will not be reduced but still remain.
Floating rate
A floating rate is an interest rate that is adjusted to change over time. Normally, banks will adjust interest rates periodically after 3 months / 6 months or 1 year. Floating rate is based on 12month or 24month savings plus the interest rate band. Floating loan rates usually apply to medium or longterm loans.
● Advantages: Floating interest rates will increase or decrease according to the market. When the market interest rate falls, the borrower's loan interest rate is usually reduced.
● Disadvantage: It is difficult for customers to estimate the cost of borrowing because interest rates are constantly changing. Especially, when the market interest rate increases, interest expenses will increase, detrimental to customers.
Mixed interest rate
A compound interest rate is a combination of two types of fixed and floating interest rates. Accordingly, banks will apply a fixed rate after a certain period of time. After this time interest rate will be floating according to the above formula.
For example, the bank applies 7% interest on home loans for the first 12 months. From December 13, the interest rate will be floating according to the formula of interest rate = 12month savings interest rate + 3%.
● Advantages: The initial fixed interest rate is usually a preferential interest rate, thus helping customers to reduce interest expenses while the principal is still high.
● Disadvantage: After the preferential period, the interest rate will be floating. At this time, when the market interest rate increases, it also means that the interest rate the customer has to bear will also increase.
How to calculate interest on bank loans
When borrowing from banks, in addition to interest rates, customers should learn how to calculate the bank loan interest rates that banks are applying. There are two popular ways to calculate interest rates today, namely:
* Calculated on the principal balance
Principal balance is an interest calculation method in which the interest is calculated on the same principal balance as unchanged each month. This can be simply understood as even though the principal decreases, the interest rate will remain the same until the end of the period. Accordingly, you can calculate the formula as follows:
Monthly interest = Annual / 12 month interest rate
Interest paid monthly = Principal amount * Monthly interest
Total monthly payable = Principal / 12 months + monthly interest
Example: Mr. Tung borrowed 100,000,000 VND, within 1 year (12 months). During 12 months, interest rate was always calculated on the principal amount of 100,000,000 VND. With the interest rate of 12% / year, the amount Mr. Tung needs to pay is:
● Interest payable on a monthly basis = 100,000,000 * 12% / 12 = 1,000,000 VND
● The amount Mr. Tung has to pay monthly = 100,000,000 / 12 + 1,000,000 = VND 9,333,333.
● After 12 months, the amount of money Mr. Tung needs to pay to the bank is VND 112,000,000
* Calculated on reducing balance
According to the method of calculating interest on reducing balance, interest is only calculated on the amount you owe (after subtracting the amount of principal you paid each month earlier). This is a popular way of calculating commercial banks for their borrowing needs from consumer loans to business and production loans with collateral.
In this principle, the bank interest rate is calculated by the following formula:
Amount to pay monthly = Loan amount / loan period + Loan amount * fixed monthly interest rate.
Example: Mr. Tung borrowed 100,000,000 VND, within 1 year (12 months). So the original amount that Mr. Tung will have to pay monthly is 8,333,333 VND.
● The first month, Mr. Tung will have to pay: 8,333,333 + 100,000,000 * 12% / 12 = 9,333,333 VND.
● For the second month, Mr. Tung will have to pay: 8,333,333 + (100,000,000  9,333,333) * 12% / 12 = 8,333,333 + 906,667 = 9,240,000 VND.
● For the third month, Mr. Tung will have to pay: 8,333,333 + (100,000,000  9,333,333  9,240,000) * 12% / 12 = 8,333,333 + 814,267 = 9,147,600 VND.
● The following formula also applies for the following months.
Interest rate to borrow 10 best banks today
When there is a need for a loan, what customers are most interested in is the loan interest rate and how are the preferential programs of the lending bank? Currently, in order to satisfy and best serve customers, many banks have adjusted their lending rates at a relatively low level.
Here are the top 10 banks with the lowest loan interest rates in December 2020, you should refer to:
Bank name 
Loan interest rate (% / year) 

Unsecured loan 
Mortgage loan 

Vietcombank 
10.8  14.4 
7.5 
Vietinbank 
9.6 
7.7 
VIB 
16 
8.8 
VPBank 
20 
6.9  8.6 
ACB 
17.9 
7.5  9.0 
Sacombank 
11 
7.5  8.5 
BIDV 
11.9 
6.6  7.8 
TPBank 
17 
6.9  9.9 
Maritime Bank 
15 
6.99 
OCB 
21 
5.997.2 
Comment: Through the table above we see
 If you are in need of a mortgage loan, you should choose a BIDV bank because it has an incentive program, only from 6.6 to 7.8% per year. Besides, there are also such as: Vietinbank, Vietcombank, TPBank, VPBank, ...
Each bank has its own unique characteristics and strengths, with Vietcombank the loan value is usually up to 75% of the collateral value. Choosing a loan product to mortgage BIDV bank red book, you will enjoy extremely preferential interest rates only from 4.9%, the loan limit up to 70  80% for a maximum period of 20 years ...
 If you do not have collateral, you can choose the form of unsecured loan at VIB, currently this bank is offering lowinterest unsecured loans, only from 6.09% / year.
In addition, you can refer to other banks such as VIB, Sacombank, Maritimebank ... which own attractive unsecured loan interest rates in 2020, quickly meeting loans without collateral, saving for customers who need quick , short or medium term loans .
Vietcombank bank loan interest rate
Vietcombank reduced its lending interest rate by 1.0% / year in 10 central provinces
Joint Stock Commercial Bank for Foreign Trade of Vietnam announced to reduce lending interest rates to support businesses and people damaged by natural disasters, storms and floods in the central provinces.
Specifically, Vietcombank reduced the lending interest rate by 1.0% / year for all existing loans and new loans for businesses and people in the provinces: Nghe An, Ha Tinh, Quang Binh, Quang. Tri, Thua Thien Hue, Da Nang, Quang Nam, Quang Ngai, Binh Dinh, Phu Yen.
The interest rate reduction is applicable to loans denominated in VND for a period of 3 months from 12/11/2020 to 12/2/2021. Subjects of interest rate reduction do not include loans being applied with Vietcombank's preferential interest rate policy.
Interest rate on BIDV bank loan
BIDV lowered interest rates for home customers, car purchases, and consumer loans
From now to the end of December 31, 2020, BIDV bank will lower 0.1%  0.2% / year for individual customers wishing to buy a house, buy a car or borrow consumer loans to serve life. The bank offers 5 interest rate packages for customers to choose from as follows:
● 7.2% / year preferential in the first 6 months
● 7.6% / year preferential in the first 12 months
● 8.1% / year preferential in the first 18 months
● 8.5% / year preferential in the first 24 months
● 9.2% / year preferential rate in the first 36 months
After the preferential period, the interest rate will be floating according to the market rate.
Interest rate for Agribank bank loans
Currently, Agribank is implementing preferential loan packages for individual customers, specifically:
* Consumer credit loan
Benefit
● Citizens easily access loans at more than 2,300 transaction offices of Agribank
● Satisfying small and urgent loans, serving the living needs and legal consumption of the loan
● Loan application procedures and documents are quickly resolved and the Bank will be approved and disbursed within a day when the Bank receives a complete set of valid documents.
Main information
● Subjects of loan: Individual customers
● Loan limit: Maximum 30 million VND
● Loan term: Maximum 12 months
● Interest rate: According to the regulations of each period
● Loan purpose: Consumer loans (purchase of household appliances, equipment, study expenses, medical examination ...)
● Loan method:
+ Loan for each time
+ Loan according to the limit
+ Loan overdrafts
● Registration: At Agribank's transaction offices nationwide
* Small credit limit
Benefit
● Borrowers are diversified, promptly meeting small capital needs for production and business activities.
● Flexible debt acknowledgment period in line with customer's repayment source.
● Mainly aimed at serving borrowers in agricultural, rural, remote and isolated areas.
● Lenders are individual and household customers who need to borrow capital to pay for costs of business operations, to serve daily needs, ...
● Serve for all customers in urban and rural areas ...
Main information
● Subjects of loan: Individual and household customers
● Loan limit: Maximum 300,000,000 VND (Three hundred million VND)
● Loan term: Short, medium term (according to specific capital needs of customers)
● Interest rate: According to the regulations of each period
● Loan purpose: to meet the needs of consumption and business ...
● Loan method:
+ Loan for each time
Lending on small scale
+ Loan overdrafts
● Registration: At Agribank's transaction offices nationwide
In addition, Agribank also supports other forms of loan equivalent to other interest rates such as:
+ Cash flow loans
Loans to support reducing losses in agriculture
+ Loan interest rate incentives
Loans through loan groups / affiliated groups  mobile loan groups
Loans for agricultural and rural development policies
+ Loan in form of account overdraft
Loans to serve life needs
Loans for business activities
* * Interest rate for unsecured loans Agribank
Agribank currently offers 3 loan product packages with the following interest rates:
● Unsecured personal consumption loans: 13% / year
● Loans for workers working abroad: 13% / year
● Loan in the form of overdraft: 17% / year
This is considered the preferential interest rate in the market. Agribank interest rates are calculated according to the actual outstanding balance, gradually decreasing over the payment periods.
Customers who borrow unsecured loans at Agribank will receive the following attractive benefits:
 Maximum loan limit of 15 times of income (not exceeding 500 million)
 Flexible loan period, from 12  60 months
 Diverse loan products, suitable for many loan needs. Especially suitable for customers who are farmers, living in rural areas
 The loan terms and procedures are simpler than the mortgage loan. Customers receive money after 23 working days.
* * Interest rate for Agribank mortgage
Red book mortgage loan Agribank has always been interested by many customers due to the preferential interest rate, stable in the range of 69% / year.
Below is the current Agribank interest rates for each mortgage loan package, please refer now:
● Loans to build / repair / buy new houses: 7% / year (Fixed for 1 year)
● Installment mortgage: 7% / year (Fixed for 1 year)
● Business loan: 6% / year (Fixed for 1 year)
● Loans for agricultural production: 6% / year (Fixed for 1 year)
● Mortgage mortgage of valuable papers: 7% / year (Fixed for 1 year)
● Car loan: 7.5% / year (Fixed for 1 year)
● Student loan: 11% / year (Fixed for 1 year)
● Loans for workers going to work abroad: 7% / year (Fixed for 6 months)
● Mortgage consumer loan: 7% / year (Fixed for 6 months)
Above is the fixed preferential interest rate for a certain period of time of Agribank. After the grace period expires, the mortgage interest rate will be calculated by the following formula:
Applicable interest rate = net income of 13 months + 3%
Agribank's mortgage loan limit is very attractive, up to 80  85% of the cost or 90  95% of the borrower's needs (Depending on the product package). Flexible loan term, up to 15 years.
Bank loan interest rate Vietinbank
* * Interest rate for unsecured bank loans at VietinBank
 VietinBank mostly only applies unsecured loans to its employees.
⇒ ⇒ ⇒ Therefore, as individuals, you can only open a VietinBank credit card, but unsecured loans are difficult.
 The interest rate for unsecured loans at VietinBank usually ranges from 7% / year to 8% / year depending on the case, credit card interest rate is from 15% 18% / year.
* * Interest rate for the VietinBank mortgage loan
Customer 
Product 
Duration 
Interest rate 
Personal 
Business loans 
Less than 12 months 
+ Loan interest: 8.0  9.5% / year 
Consumer loans (home buying, building, repairing, personal consumption ... 
Max 20 years 
+ 8.0  9.5% / year for the first 12 months, after which the average rate is added up by 3.5% 

Enterprise 
Shortterm loans (additional working capital) 
Less than 12 months 
+ Loan interest: 7.5  8.5% / year 
Medium  long term loans (project investments, investment in fixed assets, ...) 
Up to 05 years 
+ 8.0  8.5% / year for the first 12 months, after which the average rate of interest is added to 3% 
The group of banks with the lowest mortgage interest rates
Bank 
Interest rate (% / year) 
BIDV 
7.3% 
Vietcombank 
7.5% 
Vietinbank 
7.7% 
Techcombank 
8.29% 
HongLeong Bank 
6.5% 
Standard Chartered 
6.45% 
Woori Bank 
7% 
It can be seen that the banks with the best home loan interest rates today are all foreign banks or big banks in Vietnam. Group of foreign banks like Standard Chartered, HongLeong Bank ... interest rates ranged from 6.45%  6.5% / year. The group of large banks in Vietnam such as BIDV, Vietcombank, Vietinbank ... has interest rates ranging from 7.3%  7.7% / year.
The bank group has the lowest interest rate on car loans
Bank 
Interest rate (% / year) 
Vietinbank 
7.7% 
Techcombank 
8.29% 
Vietcombank 
7.5% 
BIDV 
7.3% 
MBBank 
6.6% 
Shinhan Bank 
8% 
Standard Chartered 
7.35% 
HongLeong Bank 
8.25% 
Woori Bank 
7% 
The lowest car loan interest rate is currently 6.6% / year, applied for loans at MBBank. Among major banks, BIDV is currently the bank with the most preferential car loan interest rate at 7.3% / year. If you intend to buy a car, you can choose one of the above banks to enjoy preferential interest rates.
The group of banks with the most preferential unsecured loan interest rate
Bank 
Interest rate (% / year) 
Vietcombank 
ten% 
VIB 
17% 
Sacombank 
11% 
Vietcombank 
15% 
BIDV 
11.9% 
Vietcombank 
16% 
While the mortgage interest is usually calculated on the reducing balance, the unsecured loan interest will be applied on the original balance or the decreasing balance depending on the bank.
Therefore, when the bank employee gives the interest rate, you need to ask clearly how the interest rate is applied. Normally, the initial interest rate will be lower than the interest on the declining balance, but when calculating the interest payable, it is unlikely to be lower.
The above table of unsecured loan rates is mostly calculated on the decreasing balance and the interest rate is fixed during the loan term. In order to borrow from the above banks, customers need to have stable income from transfer salaries and repayment capacity.
Some questions when getting a bank loan
Here are some questions that answer all questions of customers about bank interest that you can refer to.
● How to choose a reasonable loan term at the bank?
Loan term is a period of time within the agreed loan term of banks and customers at the end of each period that the customer must pay off all principal and interest.
So how to choose a reasonable loan term at the bank? To answer this question depends on the specific conditions of each customer. However, we will give you advice.
+ If choosing a short loan period: With a short term loan, it will help shorten the repayment period and reduce the principal amount after each payment. However, customers should pay attention to detailed calculation so that the monthly payment amount does not exceed 50% of total income, avoiding uncontrollable situation of their personal financial situation.
+ If you choose a long loan period: The monthly payment level is less, helping the pressure to pay off in the first time.
● Overdue debt when borrowing from banks, what should I do?
When the loan term is due and the customer cannot repay both the principal and interest, instead of leaving overdue debts, please note the following:
+ Talk directly with the bank about the reasons for your overdue debt to find the best solution.
+ Find out ways to deal with your debt: your income situation, repayment plan, repayment commitment time, ...
+ You need to be proactive and sensitive to offer a lower interest rate to reduce the amount you have to pay.
+ If you forget the repayment term, quickly complete the principal and interest in the shortest time.
+ If you are no longer able to repay the loan such as losing your job, defaulting, getting sick ... please discuss with the financial institution to create a plan to support you in difficult times.
● Choose the best bank loan?
Normally, when taking a loan, customers will choose the bank with the lowest lending interest rate. However, with these banks, there will be a standard that your financial ability must be good, transparent, clear and proven.
For example, companies need to declare tax properly, receive the amount via bank transfer.
So to choose a good bank you need to see if that bank has the requirements that you meet or not. Depending on each specific case, customers will consider the loan value, loan term and interest rate to choose the best bank for them.
Also you can refer to the following ways:
+ Refer to counseling brothers, friends and relatives, those who have borrowed will have experience in advising you
+ You can call CashBerry financial consulting company directly to ask for reference interest rate and advise you directly.
The current applicable interest rates for bank loans are giving many advantages to borrowers. Especially when banks are competing for customers, the "interest rate" race will help customers access capital more easily.
At the present time when the economy is heavily affected by the Covid19 epidemic, not only corporate customers but also individual customers are in financial trouble. Many loan packages to stimulate demand and support interest rates to help customers overcome the epidemic have been deployed by banks. However, before getting a loan, you need to pay attention to the following issues to avoid unnecessary risks.
Note when borrowing money from the bank
1. Firstly, the interest rates are as follows:
Article 468 Civil Code 2015 stipulates
 Interest
* Case 1: The parties have the right to agree on the interest rate but must not exceed 20% / year of the loan. Where the agreed interest rate exceeds the limited interest rate specified in this Clause, the excess interest rate shall be invalid.
* Case 2: In case there is an agreement on interest but the interest rate is not specified, when there is a dispute, the interest rate is 10%.
According to the formula:
Principal x agreed loan interest rate x loan term
 Late payment interest on principal: If you delay paying interest as committed, you will have to pay the interest rate equal to 50% of the original agreed interest rate, according to the formula:
(Principal x agreed interest rate x loan contract term) + 50% original interest rate
(Point a, Clause 5, Article 466 Civil Code 2015)
 Interest on unpaid overdue principal:
Equal to 150% of the contractual interest rate corresponding to the late payment period. Unless otherwise agreed, follow the formula:
Principal x (150% x interest rate contract) x overdue period
(Point b, Clause 5, Article 466 Civil Code 2015)
>>> Thus, according to the provisions of the law, the borrower only has to pay 3 interests as prescribed above. Any other interest will not be accepted.
2. Second method of interest payment:
 Decreasing balance: interest will be calculated only on the actual amount you still owe, after deducting the principal you have paid in the previous months.
 Calculate the interest on the original outstanding balance: the monthly interest is fixed throughout the loan term.
>>> Note: With the calculation on the original balance, the interest rate will be maintained throughout the loan term, the monthly payment is fixed without having to recalculate each month. However, if the client chooses this method, the interest rate must actually be much lower than the reducing balance applied at the same time; at the same time, should not choose too long loan period. The longer the loan period means the higher the interest payable by the customer, the hard to accept interest rate on the capital.
3. Third, be aware of the penalties
A bank offering low interest rates often comes with a very high penalty to compensate for low interest, which is usually a penalty for early repayment.
With the above shares, borrowers need to note the interest they must pay including what kind of interest as well as how much the ceiling is to avoid interest overlaps and exceed the prescribed interest rate.
After consulting the bank loan interest rate, knowing how to borrow at a low interest bank, you still find it difficult to understand and suddenly do not want to borrow money at the bank, because:
+ Complicated procedures
+ Need a mortgage
+ Wait a long time
...
Then, remove all your worries, find out how to borrow money online at CashBerry. Three reasons you should keep up with current borrowing trends are:
 Quick online registration only 5 minutes
 Do not prove income or mortgage assets
 Receive money within 2 minutes if the application is approved
However, in return, if you want to borrow from a bank or borrow money online at a financial company, in addition to finding out the reasonable interest rate, you should also consider your own financial ability to plan a payment. on time debt.
To become smart customers, before signing a loan agreement, each person should carefully consider the relevant factors as well as understand the terms of the contract.
Need to learn more about bank loan interest rates or new information about fast online loans, please contact CashBerry for a free consultation.
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