[Updated 2025] Market installment interest rates and detailed calculation method

1. Interest rate when borrowing from a bank in installments

When borrowing money from a bank in installments, understanding interest rates will help you make appropriate choices, save costs and optimize personal finances. Currently, banks often apply two main types of interest rates: preferential interest rates and floating interest rates.

• Preferential interest rates To be Low interest rates are applied during the initial period, usually lasting from 6 months, 12 months or 24 months, to help customers easily access capital. Preferential interest rates usually range from 4.99% - 8.5%/year, depending on limit and loan term.
• Floating interest rate is a flexible interest rate, adjusted periodically based on financial market fluctuations, often applied periodically Every 3 months, 6 months or 12 months. This interest rate is suitable for customers with high risk tolerance and want to take advantage of interest rate reduction opportunities from the market.

2. Instructions on how to calculate bank loan interest rates in installments 

Understanding how interest rates are calculated will help you better manage your loan and optimize your personal budget. Below are two popular interest rate calculation methods that banks often apply to installment payments. Each method has its own advantages and disadvantages for you to consider and choose accordingly.

2.1. Calculated based on principal balance

The method of calculating interest rates based on principal balance is one of the popular methods that many banks apply. With this method, the interest amount is kept fixed throughout the loan term based on the original principal amount. The calculation formula is presented in detail as follows:

• Monthly interest rate = Annual interest rate / 12 months.
• Interest paid monthly = Principal debt × Monthly interest rate.
• Total monthly payment amount = Principal / 12 months + Interest paid monthly.

Note: This method has the advantage of being simple and stable. However, the total interest costs you have to pay during the loan term will be higher than other calculation methods such as calculating based on reducing balance.

Illustrative example: Suppose you borrow 120 million VND from the bank for a period of 12 months, with an annual interest rate of 12% (equivalent to 1%/month). Applying the formula, we calculate as follows:

• Monthly interest rate = 12% / 12 = 1%.
• Monthly interest payment = 120,000,000 × 1% = 1,200,000 VND.
• Monthly principal payment = 120,000,000 / 12 = 10,000,000 VND.
• Total monthly payment = 10,000,000 + 1,200,000 = 11,200,000 VND

Therefore, every month you will need to make payments 11,200,000 VND, ashThe principal is fixed (10,000,000 VND) and the interest (1,200,000 VND) does not change throughout the loan term.

2.2. Calculated based on decreasing outstanding balance

The method of calculating interest rates based on decreasing debt balance benefits customers because the amount of interest paid will gradually decrease over time, thanks to the debt balance decreasing after each payment. The specific calculation formula is as follows:

• Monthly principal = Loan amount / Loan term
• First month's interest = Loan amount × Monthly loan interest rate
• Interest in the following months = Remaining principal × Monthly loan interest rate
• Monthly payment amount = Monthly principal + Decreasing outstanding interest

Illustrative example: Suppose you borrow 120 million VND from the bank for a period of 12 months with an annual interest rate of 12% (equivalent to 1%/month). Applying the formula, we have:

1. Monthly principal = 120.000.000 / 12 = 10,000,000 VND
2. First month's interest = 120.000.000 × 1% = 1,200,000 VND
3. Second month's interest = (120.000.000 - 10.000.000) × 1% = 1,100,000 VND
4. Total amount payable for the first month = 10.000.000 + 1.200.000 = 11,200,000 VND
5. Total amount payable for the second month = 10.000.000 + 1.100.000 = 11,100,000 VND

With this method, the amount of interest gradually decreases month by month, helping to reduce financial pressure in the long run. This method is suitable for customers who have long-term financial plans and want to save interest costs.

3. Preferential installment loan at SeABank 

With the continuous development of the financial market, SeABank has been providing installment loan programs with attractive interest rates, helping customers easily access safe and effective capital. Below are the advantages and procedures when borrowing installment loans at SeABank that you should refer to.

3.1. Advantages of borrowing capital in installments at SeABank

SeABank provides installment loan services with many outstanding advantages, helping customers easily access financial solutions that suit their personal needs. With high loan limits, flexible loan terms and quick procedures, loan packages at SeABank are designed to optimize benefits for customers. In addition, preferential interest rates and transparent installment policies help reduce financial pressure, bringing peace of mind throughout the process of using the service.

Currently, SeABank is implementing outstanding consumer installment loan programs as follows:

0% installment payment offer via Payoo payment gateway:

• Characteristic: Customers can pay in installments with flexible terms from 3, 6, 9 to 12 months without paying interest during the entire registration period.
• Applicable card type: Credit card issued by SeABank (Visa/Mastercard).
• Condition: Applicable to shopping transactions of 3 million VND or more, paid at Payoo preferential points.

0% installment payment offer via mPOS payment gateway:

• Characteristic: Similar to the Payoo program, customers can pay interest-free installments for a period of 3, 6, 9 to 12 months.
• Applicable card type: Applicable to all international credit cards issued by SeABank.
• Condition: Only applicable for orders of 3 million VND or more, paid via mPOS system at preferential locations.

3.2. Procedures for registering for installment loans at SeABank

To register for an installment loan at SeABank, customers need to prepare some necessary documents and follow the steps according to the instructions. The registration process is simple, fast and convenient, helping customers easily access capital. Specifically as follows:

1. Loan application: Complete according to SeABank's application form.
2. Personal documents: Valid ID card/CCCD or Passport, accompanied by household registration book or Temporary Residence Registration Certificate.
3. Proof of income: Labor contract, bank account statement, or income certificate from the company.

Customers can submit applications directly at the nearest SeABank branch or through online support channels for detailed instructions and quick processing.

Installment loan packages at SeABank bring convenience, safety and flexibility, meeting all customers' financial needs. From shopping, buying a house to bigger plans, SeABank is always a reliable partner, helping you realize your goals easily. Discover and immediately take advantage of incentives from SeABank to optimize your personal finances.

To find out more detailed information and choose a suitable loan package, please visit SeABank's website or contact hotline 1900 555 587. Let SeABank accompany you on your safe and effective financial journey!