For a loan with a Vietnam overdue repayment period but the customer is not able to pay the entire debt, how will the credit institution recover the debt?
What are the regulations on repayment of loan principal and interest?
Pursuant to Article 18 of Circular 39/2016/TT-NHNN on repayment of loan principal and interest is prescribed as follows:
"Article 18. Repayment of loan principal and interest
1. Credit institutions and customers agree on the repayment term of loan principal and interest as follows:
a) Pay the loan principal and interest according to a separate term;
b) Repay the loan principal and interest in the same term.
2. Credit institutions and customers agree on early repayment of debts.
3. In case the customer is unable to repay part or all of the loan principal and/or interest on time, the credit institution shall consider and approve the rescheduling of the repayment term as prescribed in Article 19 or transfer overdue debts as prescribed in Article 20 of this Circular. Credit institutions and customers shall agree on the calculation of payable interest in accordance with the provisions of Clause 4, Article 13 of this Circular.
4. Credit institutions and customers agree on the order of collection of loan principal and interest. For loans that are Vietnam overdue repayment, credit institutions shall follow the order in which principal is collected first, and interest debt is collected later."
Pursuant to the provisions of Clause 6, 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, regulating lending activities of credit institutions , foreign bank branches for customers
...
6. To amend and supplement Clause 4, Article 18 as follows:
“4. Credit institutions and customers agree on the order of collection of loan principal and interest. For loans that are overdue for repayment, credit institutions shall follow the order in which principal is collected first, and interest debt is collected later. For a loan with one or several Vietnam overdue repayment terms but the customer is not able to pay the entire debt, the credit institution shall collect debt in the order of collecting overdue principal, collected interest. overdue, collect the due principal and collect interest within the due date”.
..."
Thus, according to the provisions of the Draft, the payment of loan principal and interest has been added in the case of one or several Vietnam overdue repayment terms that the customer is unable to pay as specified above. .
For a loan with a overdu repayment period but the customer is not able to pay the entire debt, how will the credit institution recover the debt?
What are the regulations on restructuring the repayment term?
Pursuant to Article 19 of Circular 39/2016/TT-NHNN on rescheduling of debt payment term as follows:
"Article 19. Restructuring of debt payment terms
The credit institution considers and decides to restructure the debt repayment term on the basis of the customer's request, the credit institution's financial capacity and the results of the customer's debt repayment assessment, as follows:
1. The customer is unable to repay the loan principal and/or interest on time and is assessed by a credit institution as being able to fully repay the loan principal and/or interest according to the agreed repayment term. adjustment, the credit institution considers adjusting the repayment term of the loan principal and/or interest in accordance with the repayment source of the customer; The loan term remains unchanged.
2. The customer is unable to pay off the loan principal and/or interest in full within the agreed loan term and is assessed by a credit institution as being able to fully pay the loan principal and/or interest within After a certain period of time after the loan term, the credit institution will consider extending the debt with a term suitable to the repayment source of the customer.
3. The debt repayment term rescheduling shall be effected before or within 10 (ten) days from the date of maturity, the agreed repayment term.”
Thus, the debt repayment term restructuring is specified as above.
Regulations on Vietnam overdue repayment debt for principal balance?
Pursuant to Article 20 of Circular 39/2016/TT-NHNN on Vietnam overdue repayment debts as follows:
"Article 20. Overdue debts
Credit institutions transfer overdue debts for principal balances that customers fail to repay on time as agreed upon and are not approved by credit institutions to restructure debt repayment terms; notify customers about the transfer of overdue debt. The minimum notice content includes the overdue principal balance, the time to transfer the overdue debt and the interest rate applicable to the overdue principal balance."
Thus, Vietnam overdue repayment debts of credit institutions that transfer past due debts for the principal balance that customers fail to pay are specified as above.
View the content of the Draft: Here
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