Vietnam: Summary of contents of internal rules of finance companies

11:45, 07/03/2017

The State Bank of Vietnam issued Circular No. 43/2016/TT-NHNN providing for consumer lending by finance companies.

According to Circular No. 43/2016/TT-NHNN of the State Bank of Vietnam, internal rules on consumer lending shall be implemented in a consistent manner within the entire network of finance companies and address the following specific contents:

- Loan eligibility criteria; rejected loan demands; lending methods; lending interest rate and method for calculating loan interest rate; etc.;

- Procedures for processing, assessing, approving a loan application, etc.;

- Procedures for inspection and supervision of loan application, use and debt repayment of customers, etc.;

- Requirement concerning security for loans, assessment of assets pledged as collateral for loans; management, supervision and monitoring of collateral appropriate to loan security, collateral features and customers;

- Actions to be taken to promote debt repayment and recovery which are appropriate to circumstances of each customer and legislation in which the time allowed to send a debt repayment reminder should be agreed upon in a consumer credit contract, begins at 7 a.m. and ends at 9 p.m., and in which threats and intimidation are prohibited;

- Loan termination and treatment; loan interest rate and fee exemption and reduction;

- etc.

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

- Thanh Lam -

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