VPBank Offers Up to 1.5% Interest Rate Cut for Businesses

VPBank has launched preferential lending programs for sole proprietors and SMEs in Vietnam's key sectors, including agriculture, retail, and manufacturing, offering interest rate reductions of up to 1.5% per year. The initiative aims to boost economic growth and address rising capital costs for businesses. For customers in the agricultural and aquaculture sectors, interest rates will be reduced by 1-1.5% per year compared to standard production and business lending rates. Loans under 3 billion VND will receive a 1% reduction, while those of 3 billion VND or more will get a 1.5% reduction. Customers in six key industries—pharmaceuticals, consumer goods and food services retail, construction materials, tourism, agriculture and aquaculture, and handicraft manufacturing—will benefit from a 0.5-1% annual interest rate reduction, depending on the loan size. Additionally, VPBank has allocated a 10 trillion VND credit package for SMEs, with a 1% interest rate reduction. This package targets businesses in sectors such as agriculture, supporting industries, manufacturing, high technology, digital economy, artificial intelligence, and semiconductors. Launched in July, the program aims to mitigate the impact of rising capital costs and support the ongoing demand for production and business resources. The incentives are designed to lower borrowing costs for sole proprietors and provide them with more capacity for investment and expansion. Beyond interest rate cuts, VPBank is offering a grace period of up to 12 months for principal repayment on loans for fixed asset investment. This policy is tailored for clients needing capital for store openings or facility upgrades, allowing them time to operationalize assets before commencing principal payments. The program also offers flexibility in business experience requirements. Start-ups borrowing for fixed asset investment or store openings are exempt from business experience requirements, while other production and business loans require a minimum of six months of continuous business experience. VPBank stated that these preferential lending programs align with the government's and the State Bank's directives to channel capital into production, key economic sectors, and new growth drivers. Through these initiatives, the bank expects to help sole proprietors and businesses reduce capital costs, maintain cash flow, and gain resources for investment and expansion, thereby seizing growth opportunities. In addition to loans for sole proprietors and SMEs, VPBank offers the "Đồng hành vững bước" (Walking Together Steadily) program for individual business owners, with credit limits up to 20 billion VND, financing up to 80% of collateral value, and annual interest rates starting from 5.99%. Unsecured loans of up to 2 billion VND are also available at an annual interest rate of 10%, with streamlined approval processes leveraging technology. Source: VnExpress