02 consumer lending methods by finance companies in Vietnam

11:44, 10/03/2017

This is an important content specified in Circular No. 43/2016/TT-NHNN of the State Bank of Vietnam providing for consumer lending by finance companies.

According to Circular No. 43/2016/TT-NHNN of the State Bank of Vietnam, finance companies shall agree with customers on application of the following consumer lending methods:

- One-shot loan: The finance company and its customer implement lending procedures and conclude a consumer loan contract each time when a loan is needed.

- Line of credit loan: The finance company defines and agrees with its customer on the maximum outstanding balance of a loan which is maintained in a set period of time. Within a credit line, the finance company offers a one-shot loan. At least once a year, the finance company reviews and redefines the maximum outstanding balance of a loan and the period of time for maintenance thereof as appropriate to the customer’s financial capability.

View details of the loan contract at Circular No. 43/2016/TT-NHNN of the State Bank of Vietnam, effective from March 15, 2017.

- Thanh Lam -

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