Businesses accuse many banks of still applying exorbitant interest rates

Banks continue to advertise cheap loan programs, but many businesses continue to point out that they are being charged exorbitant interest rates.

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The summary of the first 6 months of the year by the State Bank (Da Nang branch) recently showed: Up to this point, the old lending interest rate in VND in Da Nang is 13%, which is at a high level, accounting for nearly 50% of outstanding loans (about 22,000 billion VND), while the average nationwide old interest rate below 13% accounts for up to 70%.

A representative of the State Bank of Vietnam (SBV) Da Nang branch pointed out that many banks such as Saigon - Hanoi (SHB) Da Nang branch have an average loan interest rate of 17.64%/year; Saigon Commercial Joint Stock Bank 17.50%; Kien Long Bank Da Nang branch 17.18%; Saigon Industrial and Commercial Bank 16.01%; Phuong Nam Bank 15.16%; Viet A Bank 15.26%...

These are banks that lend money with old debts and still keep high interest rates that many businesses and people claim are "exorbitant" interest rates.

The State Bank branch in Da Nang affirmed that it will continue to organize inspections and checks from now until the end of the year. If commercial bank branches deliberately do not lower old debt interest rates according to regulations, they will be resolutely dealt with.

Standing Vice Chairman of Da Nang City People's Committee Vo Duy Khuong requested banks to quickly lower lending interest rates to below 13% as prescribed.

The City People's Committee continues to send a document to the Governor of the State Bank to intervene in the interest rate level in the area. If it is not lowered, both banks and businesses will fall into a "vicious cycle" of capital going into banks without output, businesses in need cannot borrow to do business, leading to economic stagnation. "If businesses die, banks will also die" - Mr. Khuong said.

According to Dantri - HV