Vietnam: Regulations on consumer loan interest rate by finance companies

11:42, 07/02/2017

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

Specifically, consumer loan interest rate by finance companies is specified in Circular No. 43/2016/TT-NHNN of the State Bank of Vietnam as follows:

- Consumer loan interest rate fixed by a finance company shall conform to regulations of the State Bank.

- Finance companies shall adopt regulations on the range of consumer loan interest rates to be used consistently in its entire network in specific periods of time.

- Within a permitted period of 10 business days from the date of release or revision of internal rules its consumer loan interest rate range, the finance company must submit a report to the State Bank on the interest rate range which specifically describes fundamental factors and principles of determination of the consumer loan interest rate range, factors relating to costs of capital, cost of risk, return on equity, market interest rate, assurance that all related costs and risks will be offset, and assurance that interests of customers are reserved and growth of the finance company is certain to happen.

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

- Thanh Lam -

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