Customers with transparent and healthy financial situation will be able to agree on Vietnam short-term loan interest rates but not exceeding the maximum interest rate (Expected)?

Main Content

• Regulations on lending interest rates of credit institutions and customers?
• Amending and supplementing regulations on assessing customers' transparent and healthy financial situation?
• Fees related to lending activities of credit institutions and customers?

Regulations on lending interest rates of credit institutions and customers?

Pursuant to Article 13 of Circular 39/2016/TT-NHNN on lending interest rates are regulated as follows:

"Article 13. Loan interest rates

1. Credit institutions and customers agree on lending interest rates according to market capital supply and demand, demand for loans and credit level of customers, unless the State Bank of Vietnam has regulations on interest rates. maximum loan rate specified in Clause 2 of this Article.

2. Credit institutions and customers agree on short-term lending interest rates in Vietnam dong but not exceeding the maximum lending interest rate decided by the Governor of the State Bank of Vietnam from time to time in order to meet the meet some capital needs:

a) Serving the field of agricultural and rural development according to the Government's regulations on credit policies for agricultural and rural development;

b) Implement the export business plan according to the provisions of the Commercial Law and guiding documents of the Commercial Law;

c) Serving the business of small and medium-sized enterprises in accordance with the Government's regulations on assistance to the development of small and medium-sized enterprises;

d) Develop supporting industries according to the Government's regulations on supporting industry development;

dd) Serving the business of hi-tech application enterprises according to the provisions of the Law on High Technology and guiding documents of the Law on High Technology.

3. Contents of agreement on loan interest rate include lending interest rate and method of calculating interest on loan. In case the lending interest rate is not converted to the percentage/year and/or the method of calculating interest according to the actual loan balance, the time to maintain that actual principal balance, in the agreement The loan agreement must contain the content of the interest rate converted at the rate of %/year (one year is three hundred and sixty five days) calculated according to the actual loan balance and the time to maintain the actual loan balance. that economy.

4. When the customer fails to pay or fails to fully pay the loan principal and/or interest on the due date, the customer must pay the Vietnam short-term loan interest as follows:

a) Interest on the principal at the agreed loan interest rate corresponding to the Vietnam short-term loan term but not yet paid;

b) In case the customer fails to pay the interest on time as prescribed in point a of this clause, the late payment interest must be paid at the interest rate agreed upon by the credit institution and the customer, but not exceeding 10%/year on the balance of late payment interest corresponding to the late payment period;

c) In case the Vietnam short-term loan is transferred to overdue, the customer must pay interest on the overdue principal balance corresponding to the late payment period, the applicable interest rate shall not exceed 150% of the current loan interest rate at overdue debt transfer time.

5. In case of applying adjustable lending interest rates, credit institutions and customers must agree on the principles and factors for determining the adjusted interest rates and the time for adjusting the lending interest rates. In case, based on factors to determine the adjusted interest rate, leading to many other lending interest rates, the credit institution shall apply the lowest lending interest rate.

Thus, according to the above provisions, credit institutions and customers agree on the lending interest rates specified above.

Customers with transparent and healthy financia situation will be able to agree on Vietnam short-term loan interest rates but not exceeding the maximum interest rate (Expected)?

Amending and supplementing regulations on assessing customers' transparent and healthy financial situation?

Pursuant to Clause 4, Article 1 of the Draft Circular amending and supplementing a number of articles of Circular 39/2016/TT-NHNN as follows:

Article 1. Amending and supplementing a number of articles of Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam, providing for lending activities of credit institutions, Foreign bank branches for customers

"4. To amend and supplement Clause 2, Article 13 as follows:

"2. In case a customer is assessed by a credit institution as having a transparent and healthy financial situation, the credit institution and the customer shall agree on the interest rate for short-term loans in Vietnam dong, but not exceeding The maximum lending interest rate is decided by the Governor of the State Bank of Vietnam from time to time in order to meet a number of capital needs:

a) Serving the field of agricultural and rural development according to the Government's regulations on credit policies for agricultural and rural development;

b) Implement the export business plan according to the provisions of the Commercial Law and guiding documents of the Commercial Law;

c) Serving the business of small and medium-sized enterprises according to the provisions of the Law on Support of Small and Medium Enterprises and the Government's regulations on supporting small and medium enterprises;

d) Develop supporting industries according to the Government's regulations on supporting industry development;

dd) Serving the business of hi-tech application enterprises on the List of high technologies prioritized for development investment approved by the Prime Minister, high-tech enterprises as prescribed in the Law on High Technology and other relevant documents. guide to the Law on High Technology."

Thus, according to the provisions of the Draft, amendments and supplements to the credit institution's assessment of the transparent and healthy financial situation of the customer, then the credit institution and the customer agree on the interest rate. Vietnam short-term loan as above.

Fees related to lending activities of credit institutions and customers?

Pursuant to Article 14 of Circular 39/2016/TT-NHNN on fees related to lending activities as follows:

"Article 14. Fees related to lending activities

Credit institutions and customers agree on the collection of fees related to lending activities, including:

1. Early repayment fee in case the customer pays the debt before the due date.

2. Standby credit line fee.

3. Fee for arranging loan syndication.

4. Capital withdrawal commitment fee from the effective date of the loan agreement to the date of first loan disbursement.

5. Other fees related to lending activities are specified in relevant legal documents."

Thus, fees related to lending activities are regulated as above.

View draft content: Here