Bank Loan Interest Rates: Latest Updates [May 2025]

 Compare loan interest rates among the top 10 banks as of 2025. Which bank offers the easiest approval for unsecured loans? Which bank has the lowest interest rates for mortgage loans?

1. Current Loan Interest Rates at Major Banks

Loan interest rates at commercial banks are currently showing notable fluctuations, primarily due to domestic and international macroeconomic factors. In Q4 2024, the State Bank continued to maintain a stable operating interest rate policy and exchange rate, ensuring bank liquidity and capital supply for the economy. Long-term, the State Bank may consider holding or reducing operating interest rates if key macroeconomic indicators like inflation and exchange rates remain stable, mirroring the trend observed since early 2024.

As we move through May 2025, lending rates at many banks are still on a slight upward trend, particularly for long-term loans. This is largely because banks need to balance financial risks with profitability. However, these rates remain significantly lower than at the beginning of 2024 and could decrease further if the State Bank adjusts its operating interest rates downwards.

Some banks have kept consumer loan interest rates stable or with only slight increases, aiming to stimulate customer borrowing demand. However, those planning to borrow for home purchases, car acquisitions, or business investments should carefully consider the potential impact of rising interest rates on their repayment capacity.

Additionally, banks are offering various preferential interest rate programs to attract borrowers, especially in real estate and business production. Customers should always pay close attention to the accompanying loan conditions and thoroughly calculate their financial commitments before borrowing.

VPBank is offering various promotional programs to support customers in obtaining loans.

Overall, while current loan interest rates are trending upward, there are still ample opportunities for customers to leverage preferential loan packages. Nevertheless, closely monitoring market developments and adapting personal financial plans are crucial in today's economic climate.

Below are the mortgage and unsecured loan interest rates from Vietnam's largest banks:

1.1. Mortgage Loan Interest Rates at State-Owned Banks (May 2025)

Generally, consumer, home purchase, and business loan interest rates at the four state-owned banks range from 6% to 7%, with rates varying by term and loan duration.

(Please note: The interest rate table below is for reference only; customers should contact the bank directly for the most up-to-date and detailed information.)

Mortgage loan interest rate table for May 2025

1.2. Mortgage Loan Interest Rates at Joint-Stock Commercial Banks (JSCBs)

Mortgage loan interest rates at Joint-Stock Commercial Banks (JSCBs) in Vietnam are diverse and fluctuate based on each bank's policies and the macroeconomic situation. JSCBs often offer competitive starting mortgage interest rates to attract customers, particularly through promotional programs or during the initial phase of the loan. These starting rates can range from 7% to 9% per annum in the first few years.

VPBank is a bank with stable loan interest rates and many attractive offers for customers

Overall, current mortgage interest rates at Vietnamese JSCBs reflect the competitive landscape within the banking sector and the broader economic situation. Customers should exercise caution and carefully review their options before choosing a bank and loan package that aligns with their financial needs.

(Please note: The interest rate table below is for reference only; customers should contact the bank directly for the most up-to-date and detailed information.)

Mortgage loan interest rate table for May 2025

(Source: Internet Compilation)

1.3. Current Home Loan Interest Rates at Banks

Current home loan interest rates at banks are dynamic, influenced by individual bank policies and the broader macroeconomic environment. Key points regarding current home loan interest rates include:

• Preferential Starting Rates: Many banks continue to offer attractive introductory interest rates for home loans, typically ranging from 7% to 9% per annum for the first 6 months to 1-2 years. These competitive rates aim to attract customers in a challenging real estate market.

• Rates After Preferential Period: Following the initial preferential period, interest rates will adjust to a floating rate, usually incorporating a margin of approximately 3% - 4% above the base rate. This can push the loan rate to around 10% to 12% per annum or even higher, reflecting the inherent risks of long-term borrowing in a fluctuating economic landscape.

• Stricter Loan Conditions: Due to economic uncertainties and the real estate market, many banks have tightened lending criteria. This often means requiring customers to have stable income, a strong credit history, and high-value collateral.

• Bank-Specific Variations: Home loan interest rates vary significantly among banks. Larger, more reputable banks like VPBank, Vietcombank, BIDV, or Techcombank generally offer more stable rates and flexible loan packages compared to smaller banks. However, smaller banks may offer lower starting rates to compete.

Current home loan interest rates offered by banks

Overall, home loan interest rates are currently influenced by numerous economic and policy factors, leading to potential volatility. Borrowers should be prudent, carefully assess their long-term financial capacity before committing to a home loan, and diligently compare interest rate packages from various banks to find the most suitable option.

2.  What are Bank Loan Interest Rates?

A bank loan interest rate is the additional annual cost you incur on your borrowed principal, expressed as a percentage of the loan amount. While rates vary between banks based on their policies and strategies, they must always adhere to regulations set by the State Bank.

Currently, loan interest rates at commercial banks can range up to 45% per annum, depending on the specific bank, promotional offers, loan type, customer profile, or interest calculation method. Specifically, unsecured loans typically have higher interest rates, from 16% to 45% per annum, whereas mortgage loans offer lower rates, usually from 8% to 12% per annum.

Loan interest is the amount you have to pay annually in addition to the principal you borrowed.

2.1. Mortgage Loan Interest Rates

Mortgage loans are a form of secured lending, meaning they require collateral. Unlike unsecured loans, mortgage loans generally feature lower interest rates. Their typically high loan limits make them a popular choice for significant investments like car purchases, home acquisitions, or business ventures.

Mortgage interest rates are usually fixed for an initial period, with the duration and specific preferential rate determined by each bank. After this initial fixed period, the mortgage interest rate becomes floating, adjusting with market rates.

Mortgage loans typically have lower interest rates.

2.2. Unsecured Loan Interest Rates

Unsecured loans are a form of bank lending that does not require collateral. Consequently, unsecured loan interest rates are higher to compensate for the increased risk to the bank. While interest rates for unsecured loans vary by package, they usually remain fixed throughout the loan term and decrease as the outstanding principal balance is reduced.

Unsecured loans have higher interest rates, but in return, you don’t need to pledge any of your assets as collateral.

2.3. Comparing Unsecured Loans and Mortgage Loans

Both unsecured and mortgage loans are common bank lending products. Understanding their differences will help you make an informed decision. Below is a comparison table:

3. Most Accurate Bank Loan Interest Calculation Methods

Currently, two primary methods are commonly used for calculating bank loan interest:

Calculation based on fixed monthly principal and interest payments (Installment Method)

Monthly Interest = (Annual Interest Rate/12) × Outstanding Principal Balance

Where:

• Monthly Interest: The interest amount due each month.

• Annual Interest Rate: The annual interest rate stipulated by the bank.

• Outstanding Principal Balance: The remaining unpaid portion of your loan.

Calculation based on declining balance (Amortization Method)

Monthly Interest = (Loan Amount/Number of Loan Months) × (Outstanding Principal Balance × Monthly Interest Rate)

Where:

• Monthly Interest: The interest amount due each month.

• Loan Amount: The total amount borrowed from the bank.

• Number of Loan Months: The total duration of the loan in months, representing your repayment period.

• Outstanding Principal Balance: Your remaining debt after making a portion of the initial loan repayment.

4. Choosing the Optimal Bank Loan Term

The bank loan term is the period from the signing of the loan agreement until the full repayment of the debt. The length of the loan term depends on various factors, including the loan purpose, your financial capacity, and any collateral involved.

With a shorter loan term, the principal amount reduces more rapidly with each repayment. Consequently, the interest paid in subsequent periods will be significantly lower than in previous ones. However, your monthly principal and interest payments will be relatively high. You need to carefully consider your budget to avoid substantial repayment pressure, which could lead to financial strain and a diminished quality of life.

The interest amount will gradually decrease over the loan term as you pay off the principal.

With a longer loan term, your required monthly payment is considerably reduced. This offers greater flexibility in personal spending and may provide more options for preferential fixed interest rates from the bank. However, the total interest paid over the long term may ultimately be higher compared to a shorter-term loan.

See also:

• Learn about fast unsecured loan products using bank collateral
• What is a salary-based unsecured loan? Which bank offers the lowest interest rates?
• Which bank currently offers the best home loan interest rates? Let’s find out!

This concludes our information on the latest bank interest rates. VPBank offers a range of mortgage and unsecured loan products with various preferential programs. For more detailed information, please visit our website at vpbank.com.vn.