28/11/2024 14:51

20 Judgments applying Precedent 08/2016/AL to resolve disputes regarding credit contracts in Vietnam

The article below will provide content related to the activities of credit institutions and compile Judgments applying Precedent 08/2016/AL to resolve disputes concerning credit contracts in Vietnam

What information does a customer need to provide for credit approval in Vietnam?

According to Article 102 of the Law on Credit Institutions 2024 regarding credit approval, usage of loan funds, and financial leasing assets:

Credit Approval, Usage of Loan Funds, Financial Leasing Assets

1. A credit institution must require a customer to provide documents and data proving the customer's financial capability, a feasible plan for fund utilization, and a legitimate purpose for fund usage before deciding on credit approval, except as specified in Clause 2 of this Article.

2. A credit institution must have at least information about the legitimate purpose of fund usage and the financial capability of the customer before deciding on credit approval for the following small-scale credit grants:

a) Loans serving personal needs, credit granted via cards of commercial banks, and branches of foreign banks;

b) Financial leasing, consumer loans, credit granted via cards of non-bank credit institutions;

c) Loans serving personal needs of the people's credit funds;

d) Microfinance institution loans.

3. The customer must provide information, documents, data as stipulated in Clause 1 and Clause 2 of this Article, and information on related persons to the credit institution when requesting credit approval.

…

Therefore, a customer needs to provide complete information on financial capability, a plan for fund utilization, and a legitimate purpose for fund usage to be considered for credit approval. For small credit amounts such as loans serving personal needs or credit granted via card, only minimal information about the purpose of fund usage and financial capability is required.

Does a credit institution in Vietnam have the right to terminate credit granting before the term?

According to Article 103 of the Law on Credit Institutions 2024 regarding termination of credit granting, debt handling, interest exemption, and reduction:

- A credit institution has the right to terminate credit granting and collect debt before maturity upon discovering that the customer has provided false information, violated the contractual terms in the credit agreement, or the security contract.

- In the absence of other agreements, the credit institution has the right to handle debt and secured assets according to the contract, credit agreement, security contract, and legal regulations. The restructuring of repayment terms, and buying and selling of debts by the credit institution, complies with the provisions set by the Governor of the State Bank.

- In cases where the customer or guarantor cannot repay the debt due to bankruptcy, the debt recovery by the credit institution shall be carried out in accordance with bankruptcy law.

- The credit institution has the right to decide on interest and fee exemption and reduction for customers according to the internal regulations of the credit institution.

Thus, a credit institution has the right to terminate credit granting before the term when it discovers that a customer has provided false information or violated the terms of the contract, credit agreement, or security contract.

20 Judgments applying Precedent 08/2016/AL to resolve disputes regarding credit contracts in Vietnam

No.	Name of Judgment	Sector	Level of Adjudication
1	Judgment 17/2024/DS-ST on a dispute over a credit contract	Civil	First Instance
2	Judgment 63/2024/DS-ST on a dispute over a credit contract	Civil	First Instance
3	Judgment 29/2024/DS-ST on a dispute over a credit contract	Civil	First Instance
4	Judgment 28/2024/DS-ST on a dispute over a credit contract	Civil	First Instance
5	Judgment 06/2024/DS-ST on a dispute over a credit contract	Civil	First Instance
6	Judgment 01/2024/KDTM-PT on a dispute over a credit contract	Commercial	Appellate
7	Judgment 694/2023/DS-ST về tranh chấp hợp đồng vay tài sản	Civil	First Instance
8	Judgment 242/2023/DS-ST on a dispute over a credit contract	Civil	First Instance
9	Judgment 10/2023/KDTM-PT on a dispute over a credit contract, and mortgage contract	Commercial	Appellate
10	Judgment 06/2023/DS-ST on a dispute over a credit contract	Civil	First Instance
11	Judgment 88/2023/DS-ST on a dispute over a credit contract	Civil	First Instance
12	Judgment 84/2023/DS-ST on a dispute over a credit contract	Civil	First Instance
13	Judgment 81/2023/DS-ST on a dispute over a credit contract	Civil	First Instance
14	Judgment 26/2023/DS-ST on a dispute over a credit contract	Civil	First Instance
15	Judgment 16/2023/DS-ST on a dispute over a credit contract	Civil	First Instance
16	Judgment 20/2023/DS-ST on a dispute over a credit contract	Civil	First Instance
17	Judgment 69/2023/KDTM-ST on a dispute over a credit contract	Commercial	First Instance
18	Judgment 40/2023/DS-ST on a dispute over a loan asset contract	Civil	First Instance
19	Judgment 18/2023/DS-ST on a dispute over a credit contract	Civil	First Instance
20	Judgment 21/2023/KDTM-ST on a dispute over a credit contract	Commercial	First Instance

- This English translation is for reference purposes only and not a definitive translation of the original Vietnamese texts;
- Articles may be compiled from a variety of sources;
- Applicable Terms may have expired at the time you are reading;
- If you have any questions about the copyright of the article, please contact us via email banquyen@lawnet.vn

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