Banks in HCM City are vying with one another to offer preferentialloans in an effort to achieve the year's credit growth target of 13-15percent.
Analysts say that many banks consider the target set bythe State Bank of Vietnam as rather stiff and so have begun to makeefforts right at the start of the year.
Nam A Bank, for instance,recently unveiled a 2 trillion VND (94.14 million USD) credit packageat 6 percent interest for corporates and 6.4 percent for individualborrowers.
In January HDBank announced loans at a mere 3.8percent interest for the first six months for those borrowing between500 million VND (23,534 USD) and 2 billion USD (94,135 USD).
VietCapital Bank recently earmarked 1 trillion VND at a rate of 6.5 percentfor start-ups involved in production and distribution.
It has unveiled a 2 trillion VND package for personal loans at 7.5 percent and simple lending procedures.
At ABBank, individual customers wanting to get long- and medium-termloans can get them at 8 percent for the first 12 months under a 1trillion VND package.
Vu Thu Hang, an ABBank executive, said thebank expected long- and medium-term loans to enable individual customersto achieve their business plans and personal consumption needs, thusencouraging production and trading activities.
Banks have also simplified procedures to ensure quick disbursement of credit.
A spokesperson for a bank situated in HCM City's Tan Binh district,who asked not to be named, said lowering lending rates did hit banks'profits but providing services to borrowers will boost their earnings.
A central bank official also said that with thefierce competition among banks for good customers, those who want to winmust have quality services first followed by preferential interestrates.
Phan Dinh Tue, Deputy General Director ofSacombank, agreed, saying that in addition to having reasonable interestrates banks must have policies and mechanisms and utility products toensure best care for their customers.
The banks'efforts seem to be paying off, with credit growth in HCM Citysignificantly improving from the negative situation in the same periodin previous years.
Deputy Director of the SBV'soffice in the city, Nguyen Hoang Minh, told Tuoi Tre newspaper that inthe first two months of the year the city banking sector's credit grewby 1.1 percent, much higher than in recent years.
"Banks are making efforts to cut costs to be able to further slashinterest rates on long- and medium-term loans by 1-1.5 percent asrequired by the SBV governor.
"At present some banks are offering long- and medium-term loans at around 9 percent."-VNA
Analysts say that many banks consider the target set bythe State Bank of Vietnam as rather stiff and so have begun to makeefforts right at the start of the year.
Nam A Bank, for instance,recently unveiled a 2 trillion VND (94.14 million USD) credit packageat 6 percent interest for corporates and 6.4 percent for individualborrowers.
In January HDBank announced loans at a mere 3.8percent interest for the first six months for those borrowing between500 million VND (23,534 USD) and 2 billion USD (94,135 USD).
VietCapital Bank recently earmarked 1 trillion VND at a rate of 6.5 percentfor start-ups involved in production and distribution.
It has unveiled a 2 trillion VND package for personal loans at 7.5 percent and simple lending procedures.
At ABBank, individual customers wanting to get long- and medium-termloans can get them at 8 percent for the first 12 months under a 1trillion VND package.
Vu Thu Hang, an ABBank executive, said thebank expected long- and medium-term loans to enable individual customersto achieve their business plans and personal consumption needs, thusencouraging production and trading activities.
Banks have also simplified procedures to ensure quick disbursement of credit.
A spokesperson for a bank situated in HCM City's Tan Binh district,who asked not to be named, said lowering lending rates did hit banks'profits but providing services to borrowers will boost their earnings.
A central bank official also said that with thefierce competition among banks for good customers, those who want to winmust have quality services first followed by preferential interestrates.
Phan Dinh Tue, Deputy General Director ofSacombank, agreed, saying that in addition to having reasonable interestrates banks must have policies and mechanisms and utility products toensure best care for their customers.
The banks'efforts seem to be paying off, with credit growth in HCM Citysignificantly improving from the negative situation in the same periodin previous years.
Deputy Director of the SBV'soffice in the city, Nguyen Hoang Minh, told Tuoi Tre newspaper that inthe first two months of the year the city banking sector's credit grewby 1.1 percent, much higher than in recent years.
"Banks are making efforts to cut costs to be able to further slashinterest rates on long- and medium-term loans by 1-1.5 percent asrequired by the SBV governor.
"At present some banks are offering long- and medium-term loans at around 9 percent."-VNA
