China
Margin
The fixed part added to the base rate to make the floating rate. The margin is written into the loan contract.
How it works in Vietnam
In Vietnam a contract might set the floating rate at the base rate plus 3.5 percentage points; the 3.5 is the margin. When you compare two loans, the margin tells you which one costs more once the promotional period ends.
In the calculator, enter the floating rate with the margin already included.
Related terms
- Base rate
A reference rate each bank sets and publishes for itself. A loan's floating rate is this base rate plus a margin.
- Floating rate
The rate a loan pays after the promotional period: the bank's base rate plus a margin. When the base rate changes, the monthly payment changes too.
- Promotional rate
A lower interest rate, fixed for the first months of a home loan. When the promotional period ends, the loan moves to a floating rate.
Learn more
- Promo rate to floating rate in Vietnam: what you pay after
When the promotion ends, the bank resets your payment at the floating rate. A worked example on a 2 billion VND loan over 20 years, and what to ask first.