According to VIB, to support customers in using capital more effectively, the bank developed VIB Up as an additional option for home buyers. Instead of focusing solely on preferential interest rates during the initial phase, this solution aims to reduce interest costs throughout the repayment period, thereby helping customers better control the total cost of their loan.

A home loan typically extends for 20 to 30 years. During this period, family income can fluctuate, children grow up incurring various expenses for education, healthcare, and daily living, while market interest rates may also vary across different stages. Therefore, the ability to maintain loan stability depends not only on the initial preferential interest rate but also on the total cost of capital throughout the entire loan lifecycle.

In reality, many people only realize after a few years of repayment that even a small monthly interest reduction can lead to substantial long-term savings. Consequently, instead of focusing solely on short-term benefits, borrowers are increasingly interested in solutions that optimize long-term costs and provide more control over their family's financial plans.

VIB Up helps reduce annual interest rates by 0.2-0.4% and saves long-term borrowing costs. *Photo: VIB*

VIB Up's interest rate reduction offers are divided into three package tiers: Plus, Pro, and Elite. These come with fees ranging from 5,5 million to 19,5 million dong, providing an annual interest rate reduction of 0.2-0.4% applied to maximum outstanding balances of up to 2-5 billion dong. With VIB Up, customers only need to register once before disbursement to receive this annual interest rate reduction of 0.2-0.4% throughout the loan term, subject to program conditions.

Unlike offers applied only for a specific period, VIB Up benefits are maintained throughout the loan's lifecycle. This helps reduce the total interest paid and creates more room for customers' long-term financial plans. The effectiveness of this decision is not immediately apparent in the first few months; rather, it accumulates with each repayment period, year, and over the entire loan duration.

A bank representative stated that this approach reflects VIB's direction in product development. Instead of merely providing capital, the bank offers additional solutions to help customers manage borrowing costs more effectively from the very beginning of their homeownership journey.

In personal finance, small changes often become effective when sustained over a sufficiently long period. While the interest rate reduction may not make a large difference in each payment cycle, the accumulated savings over many years will significantly increase.

VIB provides an example: savings of up to 350 million dong are not just figures on paper. This money can be used for children's education expenses, home renovations after years of use, or to supplement the family's contingency fund. More importantly, customers do not need to constantly monitor interest rate developments or wait for new promotional programs. The benefits are established at the time of disbursement and continue to be effective throughout the repayment process. This is also why many financial experts recommend that home buyers evaluate loans based on the total cost payable over the entire loan term, rather than just comparing installment amounts in the initial years.

Beyond cost savings, many families also wish to maintain proactive cash flow management. With loans spanning decades, fluctuations in income and spending needs are inevitable. Reducing the pressure of interest payments provides borrowers with more room to build contingency funds, invest in education, healthcare, or pursue other financial plans.

This trend also indicates increasingly high customer expectations for financial services. Instead of merely seeking capital for immediate needs, many individuals desire solutions that can accompany them throughout their use of banking services.

Following this direction, VIB developed the VIB Up suite of financial solutions to add value for customers across various needs, from savings, borrowing, and spending to personal financial management. Specifically for home buyers, the disbursement day occurs only once, but the choices made at that time will impact the entire repayment journey over the next 20-30 years. Therefore, in addition to considering a suitable home and the initial interest rate, registering for the VIB Up interest rate support package before the disbursement date is a choice that helps reduce long-term interest costs, while also creating more financial flexibility for borrowers to be more proactive in their home settlement plans.

Hoang Dan