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Before applying for a loan at Vietcombank to fulfill needs such as building a house, buying a car, or investing in business, it's essential to understand how to calculate Vietcombank's loan interest. This allows for comparing loan costs, identifying differences in monthly expenses among loan packages, loan duration, and finding the loan package and repayment method that suits your financial condition.
Vietcombank Loan Interest Rates: Calculating Vietcombank's Loan Interest Rate Formula
1. What is Vietcombank's Loan Interest Rate?
Essentially, Vietcombank's loan interest rate is a fee you need to pay to borrow and utilize the bank's funds over a specific period.
Typically, the loan interest rate (borrowing cost) at Vietcombank depends on the principal amount, loan term, borrower's repayment plan, etc. The prevailing interest rates applied by Vietcombank to individual and business customers range from 7% - 8% per annum.
Vietcombank Loan Interest Rate Table for Individual and Business Customers
To delve into the detailed interest rates for savings deposits, loan interest rates at Vietcombank for specific loan packages (home purchase, car purchase, real estate purchase, business investment, etc.), you can explore the article on Vietcombank's interest rates shared by Mytour.
2. How to calculate Vietcombank's loan interest rate.
If you choose to calculate Vietcombank's loan interest based on the initial balance, then your entire monthly payment will be calculated based on the loan interest rate. With this method of loan calculation, your monthly interest payment will remain constant each month.
Vietcombank Loan Interest Calculation Formula based on Initial Estimate:
The amount you must pay monthly = Principal repayment amount per month + monthly interest = Principal amount / loan term *(1+ interest rate)
Example: You borrow 100 million from Vietcombank, with an interest rate of 13% per annum for a period of 12 months, and the disbursement date is May 8, 2020, then:
- The amount of interest you need to pay to the bank monthly: 100,000,000 * 11%/12 = 1,083,333 dong
- The principal amount you need to pay to Vietcombank monthly is: 50,000,000/24 = 8,333,333 dong
So, the total amount you need to repay to Vietcombank in 1 month is: = 8,333,333 + 1,083,333 = 9,416,667 dong
To understand how to calculate Vietcombank's monthly loan repayment, it's best to break it down into a statistical table. Specifically, with the loan amount and term as above, the loan calculation table can be calculated as follows:
Calculating Vietcombank's loan interest based on the principal balance, loan amount of 100 million, interest rate of 13% per annum, loan term of 12 months
2.2. Calculating Vietcombank's loan interest based on the diminishing balance
In addition to calculating Vietcombank's loan interest based on the principal balance, you can also consider calculating Vietcombank's installment loan interest based on the diminishing balance. With this interest calculation method, each month, you will have to repay a portion of the principal + interest (the principal and interest are calculated on the actual remaining amount after deducting the principal you have paid in previous months). By the end of the loan term, you will have to repay the entire interest and principal amount.
Vietcombank Loan Interest Calculation Formula based on the diminishing balance
- Monthly Principal Amount = Loan Amount / Loan Term
- First Month Interest = Loan Amount * Loan Interest Rate
- Subsequent Months' Interest = Remaining Principal Amount * Loan Interest Rate
Example: With the example loan above, we have a statistical table of the loan term, the amount to be paid for the loan at Vietcombank as follows:
- Principal amount to be paid in the first month = 100,000,000/12=8,333,333
- Interest amount to be paid in the first month = 100,000,000 *0.13/12=1,083,333
- Remaining principal amount in the second month: =100,000,000 - 8,333,333= 91,666,667
- Interest amount to be paid in the second month = 91,666,667 *0.13/12 = 993,056
=> Apply the same calculation method for the remaining months.
Illustrative table of calculating interest rates for Vietcombank's diminishing balance loan
2.3. How to calculate interest rates for Vietcombank credit cards
Essentially, using Vietcombank's credit card is akin to borrowing money from Vietcombank to spend and repay the bank on a fixed monthly basis. However, unlike direct loans, with Vietcombank credit card loans, you get a grace period of 45 days and are only charged interest when making cash withdrawals on the credit card. After 45 days, if your debt is still unpaid, Vietcombank will charge interest on your loan based on the personal loan interest rate. (The method of calculating Vietcombank credit card loan interest is similar to the method of calculating interest on the principal balance above).
With many consumer benefits, using Vietcombank credit cards is a flexible form of card usage, favored by many as an alternative to cash transactions. If you want to get a Vietcombank credit card but don't know where to start, you can refer to the steps, how to get a Vietcombank Visa card, Vietcombank credit cards in this article by Mytour.
3. Loan packages applying Vietcombank loan interest calculation methods
Currently, Vietcombank is simultaneously applying 2 methods to calculate Vietcombank loan interest for personal customers' unsecured loans (business production loans, car purchase loans, home purchase loans, real estate purchase loans, secured consumer loans, etc.) and business customers (short-term loans, working capital financing, etc.).
Here, Mytour has shared with you 2 basic methods of calculating Vietcombank installment loan interest, applicable to most loans at Vietcombank. Hopefully, with the information shared in this article, you will know how to calculate the costs for your loan at Vietcombank and find the most optimal loan package, loan term, and repayment method for yourself.
