Bank Loan Interest Rates Ranking

Similar to previous years, this year, banks apply different loan interest rates for different periods, ranging from 3, 6, 12, 24 months, etc. Therefore, loan interest rates at banks are an important factor for people when borrowing money, as it can effectively reduce borrowing costs. Refer to this article to learn about the ranking of bank loan interest rates.

Interest Rates for Bank Loans

I. What is Bank Loan Interest Rate?

Bank loan interest rate refers to the percentage ratio of interest to the capital amount lent by a bank within a certain period. Depending on the period, the interest rate varies, but typically, banks use a one-year lending period.

Not only depending on the period, the loan amount also determines this interest rate.

- When opting for mortgage loans (requiring collateral): Initially, the interest rate remains fixed but later it becomes variable. This applies to loans for buying vehicles on installment, home renovation loans, and more.

- When choosing personal loans (without collateral): These come with a fixed interest rate. Due to its nature relying on the borrower's creditworthiness, the interest rate is usually higher compared to mortgage loans, ranging from 18 - 25% per year.
 

II. Calculating Bank Loan Interest Rates

Presently, there are 3 methods for calculating bank loan interest rates, all of which are applied by financial institutions:

1. Calculating Interest Based on Fixed Interest Rates

With fixed interest rates, unaffected by market fluctuations, this calculation method helps customers mitigate risks associated with fluctuating market rates.

Interest Rate = the bank provides customers with a fixed interest rate package throughout the loan term

2. Calculating Interest Based on Variable Interest Rates with Decreasing Outstanding Balance

With this calculation method, you'll enjoy numerous benefits when market interest rates decrease, but you'll face risks if the market rates are high.

Interest Rate = Base Rate + Margin

Where:
- The base rate is the interest rate fluctuating over time, based on the deposit interest rate at the bank for 12 or 24 months.
- Margin: The figure recorded in the contract signed between you and the bank.

3. Calculating Installment Interest Based on Decreasing Outstanding Balance

Repaying based on decreasing outstanding balance is a loan interest calculation method where you need to pay a fixed amount to the bank every month throughout the loan term. To determine the monthly interest amount, the bank will set an interest rate, combined with forecasting future interest rates to determine an appropriate loan amount, helping you prepare your finances well. However, when settling loans, you'll need to pay additional interest differentials.

III. Ranking of Bank Loan Interest Rates

Which bank offers the lowest loan interest rates? Similar to bank interest rates, loan interest rates vary by term, such as 3, 6, 12, 24 ... months, depending on each bank. Specifically:

1. Best Mortgage Loan Interest Rates

Top banks with the best mortgage loan interest rates

Through the table above, you can easily see that BIDV offers low bank loan interest rates, with a rate of 7.8% for a 12-month term and 8.8% for a 24-month term. Ranked second in preferential loan rates is Shinhanbank with rates of 8.1% for a 12-month term, 8.8% for a 24-month term, and 9.2% for a 36-month term.

2. Best Car Loan Interest Rates from Banks

Top banks with the best car loan interest rates

Not only is BIDV currently the leading bank in Vietnam, but it also offers similarly low interest rates for both home and car loans. Therefore, you can choose BIDV to borrow money, ensuring the lowest monthly interest rates, which benefits you.

Meanwhile, Vietcombank and Techcombank also offer low loan interest rates. For Vietcombank, the interest rate for a 12-month term is 8.4%, and for a 24-month term, it's 9.1% per year. As for Techcombank, the interest rate for a 12-month term is 8.79% per year.

Through the bank loan interest rate ranking table, you can easily see that the loan interest rates of BIDV, Techcombank, Vietcombank, and others are all low. To understand more about loan interest rates from banks like Agribank, Vietinbank, or any other bank, you should contact their hotline for the most detailed advice from hotline consultants.

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