HA NOI (Biz Hub) — Vietinbank slashed the ceiling interest rate for dong deposits, which apply to individuals who take loans for terms less than 36 months, by 0.2 percentage point on November 27.

Now the highest rate is six per cent per year, and the rates for loan terms of less than 12 months range between 0.8 per cent and 5.5 per cent per year, according to the bank's quotation.

The bank's officials said that the rate cut aims to assist production and business activities, as the demand for loans by enterprises increases towards the end of the year. This is in line with the directives of the government and the State Bank of Viet Nam to prop up the economy.

This year, Vietinbank launched 12 loan packages worth a combined VND230 trillion (US$10.95 billion) with preferential interest rates, some of which were as low as five per cent per year.

Earlier, Vietcombank too reduced its short-term deposit rates by 0.1 to 0.3 percentage point. — VNS