What is the interest rate for borrowing 1 billion VND at Agribank?

As noted by Lao Dong, Agribank currently applies preferential interest rates for production and business loans, with a starting rate of 6.0%/year.

This interest rate is applied to medium and long-term loans of 12 months or more, and lasts until October 31, 2024. This interest rate is about 1.5% lower than the standard interest rate that Agribank usually applies to production and business loans.

Previously, Agribank also adjusted interest rates many times in 2023 to support people and businesses, decreasing by 1.3-4% compared to the beginning of the year. This policy will continue to be implemented in 2024, targeting priority areas such as agricultural production, fisheries, and real estate.

Notably, for short-term production and business loans, the preferential interest rate is currently a maximum of 2.0%/year lower than the floor interest rate for loans for production and business corresponding to each term:

Applicable to loans up to 3 months: from 3.0%/year.

Applicable to loans over 3 to 6 months: from 3.5%/year.

Applicable to loans over 6 to 12 months: from 4.0%/year

Borrowing 1 billion VND at Agribank, what interest rate will customers pay?

In this case, the customer borrows 1 billion VND at Agribank with an interest rate of 6.5%/year for a period of 12 months. According to the reducing balance method, the total amount of principal and interest that customers must pay monthly will be as follows:

Production and business loan interest rates are 1.5%/year lower than the current lending interest rate floor

The monthly principal payment is fixed, while the interest amount will gradually decrease according to the loan balance.

In addition to the method of calculating loan interest rates based on decreasing outstanding balance, Agribank proposes calculating based on initial outstanding balance. That means the interest each month throughout the loan period will be equal and calculated based on the initial principal amount.