Which entities are not allowed to receive unsecured loans from the People's Credit Fund? Through which forms does the People's Credit Fund mobilize capital?
Through which methods do People's Credit Funds mobilize capital?
According to the provisions of Article 36 Circular 04/2015/TT-NHNN, amended by Clause 19, Article 2 Circular 21/2019/TT-NHNN regarding capital mobilization as follows:
Capital Mobilization
1. Accept demand deposits, term deposits, and savings deposits from members, organizations, and other individuals in Vietnamese dong.
2. The total level of deposits accepted from members of the people's credit fund operating in one commune must be at least 50% of the total deposits accepted by the people's credit fund.
The total level of deposits accepted from members of the people's credit fund operating in inter-communal areas must be at least 60% of the total deposits accepted by the people's credit fund.
The total level of deposits accepted from members of the people's credit fund with total assets of 500 billion dong or more must be at least 70% of the total deposits accepted by the people's credit fund.
3. Borrowing capital to balance according to regulations issued by the Cooperative Bank of Vietnam in accordance with the law.
4. Borrowing capital from other credit institutions (excluding other people's credit funds), other financial organizations.
5. Borrowing capital from the Cooperative Bank of Vietnam.
6. Receiving entrusted capital for lending from the Government of Vietnam, organizations, or individuals in the country.
People's Credit Funds mobilize capital through the following methods:
- Accepting demand deposits, term deposits, and savings deposits from members, organizations, and other individuals in Vietnamese dong.
+ The total level of deposits accepted from members of the people's credit fund operating in one commune must be at least 50% of the total deposits accepted by the People's Credit Fund.
+ The total level of deposits accepted from members of the people's credit fund operating in inter-communal areas must be at least 60% of the total deposits accepted by the People's Credit Fund.
+ The total level of deposits accepted from members of the people's credit fund with total assets of 500 billion dong or more must be at least 70% of the total deposits accepted by the People's Credit Fund.
- Borrowing capital to balance according to regulations issued by the Cooperative Bank of Vietnam in accordance with the law.
- Borrowing capital from other credit institutions (excluding other people's credit funds), other financial organizations.
- Borrowing capital from the Cooperative Bank of Vietnam.
- Receiving entrusted capital for lending from the Government of Vietnam, organizations, or individuals in the country.
Which subjects are not granted unsecured loans by the People's Credit Funds? Through which methods do People's Credit Funds mobilize capital? (Image from Internet)
Which subjects are not granted unsecured loans by the People's Credit Fund?
According to Clause 1 Article 8 Circular 32/2015/TT-NHNN regarding loan limits as follows:
Loan Limits
1. People's Credit Funds must not grant unsecured loans or loans with preferential conditions (preferential terms on interest rates, documentation, review procedures, loan approval, warranty of debt obligation, and procedures for debt recovery compared to the law and internal regulations on loan operations, loan management) to the following subjects:
a) Members of the Board of Directors, Supervisory Board, Directors, Deputy Directors, Chief Accountants of the people's credit funds;
b) Audit organizations, auditors currently auditing, and inspectors currently inspecting at people's credit funds;
c) Enterprises that have one of the individuals mentioned in point a of this clause owning more than 10% of the charter capital of the enterprise;
d) Persons appraising and approving loans of people's credit funds.
.....
Thus, the subjects who are not granted unsecured loans by People's Credit Funds include:
- Members of the Board of Directors, Supervisory Board, Directors, Deputy Directors, Chief Accountants of the people's credit funds.
- Audit organizations, auditors currently auditing, and inspectors currently inspecting at people's credit funds.
- Enterprises that have one of the individuals mentioned: Members of the Board of Directors, Supervisory Board, Directors, Deputy Directors, Chief Accountants of the people's credit funds owning more than 10% of the charter capital of the enterprise.
- Persons appraising and approving loans of people's credit funds.
Additionally, these subjects are also not granted loans with preferential conditions on interest rates, documentation, review procedures, loan approval, warranty of debt obligation, and procedures for debt recovery compared to the law and internal regulations on loan operations, loan management.
What rights do People's Credit Funds have?
Pursuant to Article 40 Circular 04/2015/TT-NHNN, amended by Clause 5 Article 2 Circular 06/2017/TT-NHNN, People's Credit Funds have the following rights:
- Being guided and trained in banking operations, and information technology by the Cooperative Bank of Vietnam.
- Being supported in banking activities by the Cooperative Bank of Vietnam according to the legal regulations.
- Being supported by the Cooperative Bank in carrying out internal audits upon request.
- Receiving financial support from the Government, domestic and foreign organizations, and individuals.
- Requesting borrowers to provide documents related to production, business, services, and living conditions concerning the loans.
- Deciding on income distribution, handling losses according to the law and the Charter of the people's credit funds.
- Refusing demands from organizations or individuals that violate legal regulations.
- Filing complaints or lawsuits against organizations or individuals infringing upon the legal rights and interests of the people's credit funds.
- Exercising other rights according to legal regulations.
LawNet