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Lowering lending rates to support customers
PHAm VAn
BIDV announced to reduce lending rate by up to 2 percent compared to the current rate for a number of customer groups affected by Covid-19.
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In a statement released recently, BIDV said that from 15 July 2021 to 31 December 2021 it would reduce lending interest rates on existing outstanding loans by an average of 1 percent per year, and by up to 2 percent per year for some difficult customer groups compared to the current interest rate. This action is a response to the policy of the Government and the State Bank of Vietnam on the implementation of solutions to support customers to recover, maintain and boost production and business given the complicated developments of the Covid-19 pandemic.
Particularly, BIDV’s lending rate reduction on existing outstanding loans is applicable to: Customers directly affected by the Covid-19 pandemic such as accommodation, restaurant services, resorts, hospitality, transportation; Customers in epidemic areas, enterprises manufacturing essential goods for the economy, or employing a large number of laborers; and those suffering a decline in business activities.
In the first half of 2021, BIDV launched credit packages at preferential interest rate totalling up to VND368 trillion (USD16 billion) and actively reduced income by VND2,500 billion (USD109 million) to support customers.
For the remainder of the year, BIDV plans to continue to support customers affected by the Covid-19 pandemic with a total of up to VND3,600 billion (USD157 million), including interest reduction of VND2,000 billion (USD87 million) on existing loans and VND1,600 billion (USD70 million) for new loans. Thus, the total resources BIDV expects to support customers affected by the Covid-19 pandemic in 2021 are up to VND6,100 billion (USD265 million).
BIDV expressed its hope that the lending rate reduction is a timely action to support businesses, people and the economy under the impact of Covid-19. This demonstrates the responsibility of a state-owned bank that always pioneers in implementing the policies of the government and State Bank of Vietnam.
