Shinhan Bank Vietnam Limited (Shinhan Bank) has reduced interest rates for both VNĐ and USD loans. — Photo Shinhan Bank Vietnam Limited

Shinhan Bank has reduced loan interest rates for corporate customers to help those affected by the COVID pandemic recover from its effects and generally to cope with inflation and volatility in raw material prices, and expand business at the end of the year when demand is high.

It has announced two loan interest packages with exceptionally competitive interest rates, applicable to both USD and VNĐ loans.

In the case of VNĐ loans, existing and new customers will get a discount of 0.9-1.3 percentage points depending on the tenor.

In the case of foreign currency loans, the interest rate is 0.6 points lower for tenors of one to six months.

Although input costs still increased sharply with deposit rates, specifically, deposit interest rates at Shinhan Bank climbed by around 1 per cent for 2, 4, and 9 month terms.

But immediately after the State Bank of Vietnam's increase in credit growth cap, Shinhan Bank initiated a loan programme for corporate customers to help them access funding at more favourable interest rates, optimized costs during the peak season.

This interest rate reduction also applies to new borrowers and those whose loans are due for interest rate changes.

This programme also covers short-term loans.

Furthermore, the bank is still actively implementing a 2 per cent interest rate support programme to help businesses recover after being affected for a long time by the pandemic.

Kang GewWon, CEO of Shinhan Bank Vietnam, said: "The reduction in lending interest rates was implemented by our bank in accordance with National Assembly Resolution 43/2022/QH2015 and the 2 per cent interest rate subsidy mandated by Decree No. 31/2022/ND-CP.

“This is even more meaningful when applied during the last month of the year, demand for capital peaks, thereby demonstrating Shinhan Bank's unceasing commitment to helping customers achieve their financial goals."