Specifically, according to Circular No. 08/2013/TT-NHNN, credit institutions and foreign bank branches set VND mobilizing interest rates for entities and individuals as follows:
The maximum VND mobilizing interest rate for demand and time deposits (below 1 month) is 2% p.a; the maximum VND mobilizing interest rate for time deposits (from 1 month to below 12 months) is 7.5% p.a (a decrease of 0.5 percentage point p.a as compared to that in Circular No. 32/2012/TT-NHNN dated December 21, 2012); the People's Credit Funds and Micro Finance Institutions are exceptionally permitted to apply the maximum VND mobilizing rate of 8% p.a (a decrease of 0.5 percentage point p.a in comparison with that in Circular No. 32/2012/TT-NHNN dated December 21, 2012). The mobilizing rates for 12 month and above term will be set by credit institutions and foreign bank branches on the basis of capital supply and demand.
Types of deposits include demand, time, savings, certificates of deposit, promissory notes, bills, bonds and other forms of deposit of entities (excluding credit institutions and foreign bank branches) and individuals in accordance with Item 13 of Article 4 of the Law on Credit Institutions.
The maximum interest rate for deposits which is specified in this Circular is applied to the type of deposits with interest rate paid at maturity or to other types converted to type of deposits with interest rate paid at maturity.
Credit institutions and foreign bank branches are required to publicize their VND mobilizing interest rates in line with the SBV’s regulations. They are not allowed to receive deposits with promotion programs in any forms (cash, interest rates and other forms) which are not in accordance with law and this Circular.
The interest rates for term deposits in VND mobilized by credit institutions and foreign bank branches from entities and individuals before the effective date of this Circular will be valid until the maturity; and when these deposits become due, but entities and individuals do not withdraw their deposits, credit institutions and foreign bank branches will set new interest rates for these deposits in line with this Circular.
According to Circular No. 09/2013/TT-NHNN, maximum VND short-term lending rate charged by credit institutions and foreign bank branches is 11% p.a (a decrease of 1 percentage point p.a in comparison with that in Circular No. 33/2012/TT-NHNN dated December 21, 2012); the People's Credit Funds and Micro Finance Institutions are allowed to apply the maximum VND short-term lending rate of 12% p.a (a decrease of 1 percentage point p.a as compared to that in Circular No. 33/2012/TT-NHNN dated December 21, 2012). Short term VND loans applied this maximum interest rate are to meet the capital requirements for: (i) supporting agricultural and rural development in line with Decree No. 41/2010/NĐ-CP of the Government dated April 12, 2010 on credit measures for agricultural and rural development; (ii) implementing plan for production and business of export goods in accordance with the Law on Commerce; (iii) supporting production and business of small and medium enterprises (SMEs) in accordance with Decree No. 56/2009/NĐ-CP dated June 30, 2009 on supporting SMEs; (iv) developing supporting industries in line with Decision No. 12/2011/QĐ-TTg of the Prime Minister dated February 24, 2011 on policies of developing supporting industries; and (v) supporting high – tech enterprises in accordance with the relevant regulations and Law on High Technology.
The eligible borrowers to enjoy the aforesaid interest rates should meet the rules set by the SBV and be assessed by credit institutions and foreign bank branches as the financially sound and transparent borrowers. On the other hand, the borrowers should provide the information and documents to prove that they belong to the priority sectors in accordance with this Circular and take responsibility for truthfulness and accuracy of provided information and documents.
Credit institutions and foreign bank branches are required to publicize their lending interest rates and criteria for defining the borrowers in accordance with this Circular.
Credit institutions and foreign bank branches provide loans to customers specified in this Circular in accordance with the legal texts on lending and prudent ratios and the other relevant legal texts; they are not allowed to collect any new fees related to loans for these customers, excluding certain fees stipulated in Circular No. 05/2011/TT-NHNN dated March 10, 2011 of the SBV Governor on lending fees charged by credit institutions to customers.
The Circular also stipulates that the lending interest rates applied to the credit contracts signed before the effective date of this Circular continue to be valid in compliance with the signed credit contracts and law at the date of signing.
For the other loans not specified in this Circular, credit institutions and foreign bank branches shall comply with Circular No. 12/2010/TT-NHNN dated April 14, 2010 of the SBV Governor on guiding credit institutions to provide VND loans with negotiable interest rates.
Circulars No. 08 and 09/2013/TT-NHNN take effect on March 26, 2013 and replace Circulars No. 32 and 33/2012/TT-NHNN dated December 21, 2012.
On the same day, the SBV Governor issued Decision No. 643/QĐ-NHNN on reducing SBV key interest rates by 1 percentage point p.a. Accordingly, the refinancing interest rate is reduced to 8% p.a, the discounting rate to 6% p.a, and the overnight rate in the inter-bank electronic payment and the rate of loans to finance short balances in clearing transactions between SBV and commercial banks to 9% p.a.
This Decision takes effect on March 26, 2013 and replaces Decision No. 2646/QĐ-NHNN dated December 21, 2012.
Source: sbv.gov.vn