In the growing competition for clients who want to take out loans from one bank to pay loan debts to another bank, large banks with a good reputation, low input costs and effective assessment and disbursement processes have an edge. A bolder move in client attraction In mid-July, the Vietnam International Bank (VIB) rolled out a program to lend to clients who want to borrow from one bank to pay debts to another bank, with a preferential annual interest rate of 5.5%, 6.5% and 7.5% which is fixed over the respective period of 6, 12 and 24 months. After each particular period, the applicable interest margin is just 2.9%. The maximum loan term is 30 years and the loan accounts for up to 80% of the value of assets used as collateral, which are townhouses, villas, condominiums and terraced houses with original ownership certificates. When customers “transfer” their loans to VIB, they will have the option of refraining from paying the principle for the first 24 months from the date of a loan being made. VIB said the normal banking market practice is that customers must fully pay their loans at old banks and take back the assets used as […]
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