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As a major player among state-owned banks, Agribank (Vietnam Bank for Agriculture and Rural Development) has been and is implementing many low-interest personal loan packages to serve the borrowing needs of farmers, wage earners who do not have collateral nationwide.
What are the interest rates for unsecured loans at Agribank, and how much are they?
Most of AgriBank's unsecured loans are approved for short to medium term (12 months - 60 months), with interest rates calculated according to each period (averaging around 1.3 - 1.7% per month).
To better understand AgriBank's unsecured loan packages, including the interest rates for 1 month, 1 year, and estimated repayment amounts, readers should refer to the article below.
What are the interest rates for personal loans at AgriBank for 1 month and 1 year?
1. What is an unsecured loan at AgriBank?
AgriBank's unsecured loans are based on the borrower's creditworthiness (credit score) without requiring collateral. Typically, to access and be approved for AgriBank's unsecured loans, you need to have a high credit score (Credit score is a numerical representation of the borrower's ability to repay debt and reflects the borrower's trustworthiness based on their credit history).
Because unsecured loans carry higher risks for borrowers, the interest rates for AgriBank's unsecured loans will be higher and require higher credit scores compared to other loan packages from AgriBank. Additionally, to minimize lending risks, instead of annual payments, borrowers of AgriBank's unsecured loans need to make monthly payments to the bank. This will make it easier for borrowers to repay than having to pay a large sum annually through other interest payment methods.
2. Unsecured loan packages at AgriBank
Credit cards, student loans, personal loans, etc., are the prominent unsecured loan packages offered by AgriBank. Specifically, the common unsecured loan packages at AgriBank include:
- Loans for foreign workers
- Study abroad loans
- Short-term production and business loans
- Small-scale loan limits
- Consumer credit loans
Depending on each loan package, the loan limits for AgriBank's unsecured loans range from 10 million to 600 million VND. The actual loan amount approved is based on the borrower's salary and credit score.
The eligible borrowers, loan limits, loan duration, and conditions for AgriBank's unsecured loans vary for each loan package. For details on the borrowing conditions for each specific Agribank loan package, please visit AgriBank branches nationwide for advice and clarification.
AgriBank's unsecured loans, details of AgriBank's unsecured loan packages
3. Interest rates for AgriBank's unsecured loans
Currently, the interest rates for AgriBank's unsecured loans range from 1.3% - 1.7% per month, equivalent to approximately (15.6% - 20.4% per year). For AgriBank credit cards, the fixed interest rate for unsecured loans is 1.08% per month (approximately 13.96% per year). Compared to other banks in Vietnam, with the same loan limits, AgriBank's unsecured loan interest rates are considered much more favorable.
AgriBank calculates the interest rates for unsecured loans based on the loan amount and the borrower's credit score. Typically, the interest rates for AgriBank's unsecured loans are higher than those for secured loans. If the loan term is longer, the interest paid will be higher, and vice versa. Additionally, during the borrowing process, you will have to pay additional fees such as loan application fees, initiation fees, loan registration fees, etc., as per the bank's regulations.
All unsecured loans at AgriBank are calculated using the diminishing balance method, and repayments are made monthly. (Refer to the article how to calculate bank interest based on diminishing balance to understand more about this interest calculation method)
To better visualize AgriBank's unsecured loan interest rates and monthly/yearly repayment amounts, AgriBank provides a calculation tool for customers. Specifically, with the intended loan amount, you can easily determine the monthly repayment amount by following these steps:
Step 1: Access AgriBank's calculation tool, select 'loan calculation' (Quick access Here)
Step 2: Enter the loan amount, loan term, interest rate, disbursement date, and click 'calculate loan.' A detailed table of the amount of interest to be paid, the principal amount, and the repayment schedule showing the monthly repayment amounts will be displayed for your reference and tracking.
4. Procedures for AgriBank's unsecured loans.
To apply for AgriBank's unsecured loans through salary, you need to prepare the following documents and procedures:
- Copy of household registration book, ID card of the borrower
- AgriBank's unsecured loan application form (provided by AgriBank)
- Proof of income: labor contract, latest 3-month salary statement
- 2 photos sized 3 x 4
With your unsecured loan application at AgriBank branches nationwide, AgriBank loan officers will review your documents, request additional necessary documents, and proceed with the loan analysis and appraisal. If you meet the borrowing conditions, your application will be approved and disbursed according to the bank's working procedures.
While exploring information about AgriBank's unsecured loan interest rates, borrowing conditions, and procedures, if you prefer not to visit AgriBank branches directly, you can contact AgriBank's hotline for assistance and clarification.
5. Key Considerations for AgriBank's Unsecured Loans.
- Before applying for any AgriBank unsecured loan, it's best to use the loan calculation tool above to estimate the monthly interest payment. Ideally, the monthly payment should be in line with your monthly income.
- AgriBank's unsecured loan contracts will include penalty fees, penalty interest rates if you pay late or lose the ability to repay. You should pay attention to this clause before signing the loan contract.
So, we've explored the concept together, AgriBank's unsecured loan packages along with the conditions and procedures for AgriBank's unsecured loans. Through detailed information about AgriBank's unsecured loan interest rates for 1 month, 1 year, and the loan interest calculation tool shared in this article, you can quickly calculate the repayment amount for your loan and choose the most suitable loan package, loan amount, and limit for yourself.
