When it's time to repay the loan, how do commercial banks support interest rates in Vietnam?
In which case does the credit institution not continue to benefit from interest subsidies to customers?
Pursuant to Clause 3, Article 4 of Decree No. 31/2022/ND-CP stipulating as follows:
Eligibility for interest subsidies
1. Borrowers which wish to receive interest subsidies and satisfy loan conditions in accordance with applicable laws on lending operation of credit institutions, foreign bank branches to borrowers.
2. Loans benefiting from interest subsidies must be in VND. The loans must have their lending and disbursement agreements signed in the period between January 1, 2022 and December 31, 2023. The loans must be used for the purposes mentioned under Clause 2 Article 2 hereof and are not benefiting from interest subsidies provided by state budget via any other policy.
3. A loan shall cease to benefit from interest subsidies when:
a) The interests are due in the period in which overdue principle and/or late interest amount not benefiting from interest subsidies occur. The loan shall only be eligible for interest subsidies again for subsequent due interests after the borrowers have paid all overdue principles and/or late interests.
b) The loan is deferred without benefiting from interest subsidies for the deferred period.
Thus, a loan shall cease to benefit from interest subsidies when:
- The interests are due in the period in which overdue principle and/or late interest amount not benefiting from interest subsidies occur. The loan shall only be eligible for interest subsidies again for subsequent due interests after the borrowers have paid all overdue principles and/or late interests.
- The loan is deferred without benefiting from interest subsidies for the deferred period.
When it's time to repay the loan, how do commercial banks support interest rates in Vietnam?
How to determine the interest rate support limit for each commercial bank in 2022 and 2023?
According to the provisions of Clauses 2 and 3, Article 4 of Circular No. 03/2022/TT-NHNN, the interest rate support limit for each commercial bank in 2022 and 2023 is determined as follows:
- In case the total amount of interest rate support according to the registered plan of commercial banks in 2022 and 2023 is less than or equal to 40,000 billion VND, the State Bank of Vietnam shall determine the interest rate support limit for each commercial bank as registered.
- In case the total amount of interest rate support according to the registration plan of commercial banks in 2022 and 2023 is more than 40,000 billion VND, the State Bank of Vietnam shall determine the interest rate support limit for each commercial banks are as follows:
+ The limit determined in 2022 and 2023 is equal to the product between VND 40,000 billion and the proportion of outstanding loans as of December 31, 2021 of each commercial bank over the total loan balance of commercial banks registered for interest rate support plans, but not exceed the amount of interest support according to the plan registration of each commercial bank. Specifics are determined according to Appendix 01 issued together with Circular No. 03/2022/TT-NHNN.
+ Based on the above-mentioned results of determining the limit in 2022 and 2023, the State Bank of Vietnam determines the interest rate support limit in 2022 for each commercial bank by the amount of interest rate support according to Register for the 2022 plan.
In case the interest rate support amount according to the 2022 plan registration is greater than or equal to the limit determined in 2022 and 2023, the interest rate support limit in 2022 is equal to the limit determined in 2022 and 2023.
The limit determined in 2023 is equal to the limit determined in 2022 and 2023 minus the limit determined in 2022.
When it's time to repay the loan, how do commercial banks support interest rates in Vietnam?
Pursuant to Article 3 of Circular No. 03/2022/TT-NHNN stipulating as follows:
Method of interest support
By the time of repayment of each interest payment term, commercial banks may choose to provide interest rate support to customers by one of the following methods:
1. Directly deduct the amount of loan interest payable by the customer equal to the interest rate supported loan amount.
2. Collect the entire loan interest from the customer in the period and refund the customer the interest supported loan amount on the same day of interest collection. In case the collection of loan interest in the period is performed after working hours of the commercial bank, the refund of the interest rate-supported loan amount can be done on the next day.
Thus, when it is time to pay the debt of each interest payment term, the commercial bank chooses to provide interest rate support to customers by one of the following methods:
- Directly reduce the amount of loan interest payable by the customer equal to the interest rate supported loan amount.
- Collect the entire loan interest from the customer in the period and refund the customer the interest supported loan amount on the same day of interest collection.
In case the collection of loan interest in the period is performed after working hours of the commercial bank, the refund of the interest rate-supported loan amount can be done on the next day.
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