According to the bank, buying a home is one of the most significant financial decisions for many individuals. With loans often extending 15-25 years, people frequently focus solely on monthly installments, overlooking that a reduction of just a few basis points in interest can save hundreds of millions of dong over the entire loan term.

This is why the home loan interest rate support package, part of International Bank's (VIB) VIB Up financial solutions, is attracting significant interest from customers seeking home loans. Instead of receiving benefits for only a few initial months or years, customers can register for the VIB Up package once to enjoy interest rate reductions throughout the loan term, potentially saving up to 350 million dong in total interest. This interest support policy aims to optimize costs for customers with long-term home loans.

VIB Up's home loan interest rate support package. *Photo: VIB*

The VIB Up interest rate support package applies to medium and long-term loans secured by real estate. Depending on their needs and loan size, customers can choose one of three membership tiers, each offering corresponding benefits.

The interest rate reduction is applied throughout the loan term, subject to program conditions. Additionally, customers receive a Max Card credit card, a refund of Max Card package fees, and monthly loan interest refunds when maintaining a balance in their VIB payment account. Customers who choose the Pro or Elite packages also receive priority banking experience benefits, along with 4 complimentary airport lounge visits and fast track services.

Under the VIB Up mechanism, customers who join the Elite package with a one-time registration fee of 19,5 million dong will receive an annual interest rate reduction of 0,4% on eligible real estate loans with a maximum outstanding balance of 5 billion dong throughout the loan term.

VIB provides an illustration: a customer takes out a 5 billion dong apartment loan for a 30-year term. By registering for the Elite package, the interest rate is reduced by 0,4% annually on the eligible outstanding balance. In the first year alone, with a high outstanding balance, the interest saved is approximately 20 million dong, equivalent to the membership registration fee. In subsequent years, the benefit continues under program conditions, potentially leading to total interest savings of hundreds of millions of dong over the entire loan period.

According to the bank, for common home loans today, ranging from 2 to 5 billion dong with terms of 20-30 years, an annual interest rate reduction of 0,2-0,4% can make a significant difference in total financial costs. VIB Up's distinguishing feature is that the benefits are sustained throughout the loan term, rather than being concentrated only in the initial phase, unlike many other interest rate support programs in the market.

A bank representative stated that globally, the "membership package banking" model is becoming increasingly popular. Customers no longer desire a uniform set of financial products but seek to choose benefits tailored to their specific needs. VIB Up was developed with this direction in mind. Instead of just offering traditional banking products, VIB provides membership packages, allowing customers to proactively select benefits suitable for each financial stage.

Individuals with existing home loans can leverage the interest rate support package to reduce long-term capital costs. Those with surplus cash flow can opt for packages that increase deposit yields. Meanwhile, frequent spenders can register for the Max Card credit card membership package, offering cashback benefits of up to 10,8 million dong annually. The unique aspect of this model is that customers have more choices and only pay for privileges that truly align with their needs.

As the banking sector continues to promote solutions for optimizing loan costs and helping customers utilize capital more effectively, VIB Up offers an additional option for customers to proactively reduce long-term interest expenses, rather than focusing solely on initial loan benefits. For a multi-year home loan, an interest rate reduction not only impacts each repayment period but can also yield significant cumulative value over the entire loan lifecycle. With the VIB Up loan interest rate support package, customers can reduce total interest costs by hundreds of millions of dong, thereby gaining more flexibility to balance cash flow and plan for other financial goals.

A VIB representative stated that membership package financial solutions like VIB Up also indicate a shift in the approach to banking services: from individual financial products to more flexible solutions. This suite of solutions provides customers with more choices for important financial decisions at each stage of life.

Hoang Dan