[NEWS] - Small and medium enterprises innovate their approach to finance

After a series of banks cut deposit rates, experts believe that lending rates will soon cool down. This is the expected signal for the economy and real estate sector to rise strongly.

Cash flow bottleneck, and interest rate pressure are removed

By mid-March, all banks had sharply reduced the deposit interest rates for many terms. According to a survey of the listed interest rates of 35 banks, only a few small-sized banks are allowed to apply the highest interest rates for individual customers over 9 %/year. As for large banks, interest rates fell sharply compared to the previous quarter. As at Techcombank, interest rates for all terms from 6 months onwards are currently at a common level of 7.9%.

Recently, VnDirect has forecast that deposit interest rates will peak in the first quarter and gradually decrease in the second quarter. “We expect the deposit interest rate to have a term of 6 months and 12 months gradually decrease to 6.7% and 7.5% by the end of 2023.”

Regarding lending interest rates, the State Bank said that 22 commercial banks reduced the average lending interest rate. With the recent adjustments, the interest burden of customers in the floating period will be significantly lighter.

“It is expected that in the next few weeks if nothing changes, we will continue to have another reduction in interest rates. The ultimate goal of a rate cut is to quickly reduce lending rates. Interest rates depend on industries and terms, but for priority industries such as production and business, OCB has already lent below 10% interest rate,” said OCB General Director, Mr. Nguyen Dinh Tung, said.

Not only reducing interest rates for existing customers, banks are also implementing a series of preferential loan packages. For example, VietinBank announced to spend VND 10,000 billion, with an interest rate of only 7% per year, to support small and medium-sized enterprises to develop their businesses in the first 6 months of 2023. BIDV implemented a new short-term loan package with 30,000 billion VND to meet production and business needs with preferential interest rates of 8 %/year. MBBank also announced a 1%/year reduction in lending interest rates for corporate customers with revenue below VND 100 billion…

The dose of "doping" for real estate to accelerate

With the move to reduce interest rates from banks, borrowing shortly will be easier to breathe. This can be considered a strong "doping dose", helping to restore confidence for businesses, households, and individuals in many industries.

When interest rates cool down, all sectors of the economy will quickly recover, in which the strongest rebound is real estate, which is the biggest bottleneck affecting this sector. throughout the past time. At the same time, the achievements of the economy will continue to create a double thrust for real estate.

In addition, when deposit interest rates decrease after a short-term rush, investors will redirect cash flows to find a more efficient and sustainable profit channel. Real estate is considered to be the low-lying area receiving the most capital.

Many investors have also prepared for this scenario. Director of Product Research working at Ho Chi Minh City High-Tech Park, Mr. Bui Minh Cong, commented: “The time when bank interest rates have peaked will also be the bottom of the real estate sector. Now, interest rates have turned down and real estate prices gradually increase. Therefore, my colleagues and I are also actively looking for affordable apartments to catch the new price increase.”

According to experts, after a difficult turn, 2023 will open a new development cycle for the real estate market. In particular, when supported by "doping doses" such as falling interest rates, cleared money flow, high demand, and coming here many legal bottlenecks will be removed, and the price increase will be faster.

Yen Dang (Collection source)