Home loans are expected to lead banks’ consumer credit ithe context of low interest rates and a gradually recovering real estate market.

According to Deputy Director of the State Bank of Vietnam’s HCM City branch, Nguyễn Đức Lệnh, by the end of October 2024, the total outstanding consumer loans in the locality reached more than VNĐ1 quadrillion, up 6.3 per cent compared to the end of 2023 and 12 per cent over the same period last year. Of the value, loans for buying, leasing, building and repairing houses accounted for the highest proportion.

The data shows that the demand for consumer credit has been growing in line with the growth trajectory of the economy over recent months. Socio-economic and environmental factors were the main factors affecting consumer credit growth in general and in the city, Lệnh said.

"The housing loan segment has been growing better in the past three months and achieved the highest growth rate of 1.3 per cent in October 2024. This was the segment with the highest proportion, so the positive growth of this segment will continually promote consumer credit growth going forward," Lệnh believes.

In addition to housing loans, the demand for consumer loans to serve daily life is also a factor positively affecting the growth of consumer credit.

Along with the trend of decreasing interest rates, consumer loan interest rates have also decreased significantly, partly promoting the recovery of consumer credit growth at banks in recent months. For home loans, the interest rate is currently below 10 per cent.

During the peak season at the end of this year, many banks have launched consumer loan packages with preferential interest rates to meet the business and shopping needs of individual customers, which is expected to further promote consumer credit growth.

For example, Agribank has implemented a preferential short-term loan programme for individual customers serving production and business activities, with interest rates starting at only 4 per cent per year for a three-month term, 4.5 per cent per year for a 3-6 month term, and 5 per cent per year for a 6-12 month term.

For home loans and loans to serve living needs, Agribank applies medium and long-term interest rates starting at 6 per cent per year, fixed for the first six months, 6.5 per cent per year, fixed for the first 12 months, and 7 per cent per year fixed for the first 24 months.

At VIB, there are two outstanding loan packages, including a loan package for one million apartments and a VNĐ30 trillion package for loans to buy townhouses, with interest rates of 5.9 per cent, 6.9 per cent, 7.9 per cent per year, fixed for 6, 12 and 24 months.

ACB is also implementing a VNĐ4 trillion programme with interest rates from 8.5 per cent per year, fixed for five years. — VNS