According to the law in Vietnam, what is a credit limit? How to check credit limit in Vietnam?

According to the law in Vietnam, what is a credit limit?

Pursuant to Clause 3 Article 3 of the Circular 19/2016/TT-NHNN stipulating as follows:

Interpretation of terms

For the purposes of this Circular, these terms below shall be construed as follows:

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3. Credit card means a card that authorizes its holder to conduct card transactions within the credit limit granted under the agreement with the card issuer.

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Article 1 of the Regulation on the Purchase and Sale of Credit Limits between Financial Institutions issued together with Decision 43/QĐ-NH14 in 1996 stipulates the credit limit as follows:

Article 1.- Credit limit is a tool to implement monetary policy of the State Bank of Vietnam, aiming to limit the maximum outstanding credit balance to the economy of the financial institution.

Thus, credit limit is a tool to implement monetary policy of the State Bank of Vietnam, aiming to limit the maximum outstanding credit balance to the economy of the financial institution.

Credit limit is the maximum amount of money that a financial institution allows an individual or business to borrow in a specified period of time. Depending on income, credit score, credit history, and personal financial statements, each customer will have a different credit limit.

According to the law in Vietnam, what is a credit limit? How to check credit limit in Vietnam? - Source: Internet

What are rules of using credit cards in Vietnam?

Pursuant to Article 17 of the Circular 19/2016/TT-NHNN (amended by Article 1 of the Circular 17/2021/TT-NHNN and Clause 8 Article 1 of the Circular 26/2017/TT-NHNN) stipulating rules of using credit cards in Vietnam as follows:

- Each cardholder must provide sufficient and accurate information as required by the card issuer upon entering into the agreement on card issuance and usage and take responsibility for the accuracy of the information provided.

- When using a credit card or a debit card with overact facility, the cardholder must use money properly and make full and due repayment of loan amounts and interests thereof to the card issuer as specified in the agreement concluded with the card issuer.

- Scope of card usage:

+ Debit cards and personalized prepaid cards are used to conduct card transactions as agreed upon by the cardholder and the card issuer;

+ Debit cards, credit cards, personalized prepaid cards issued electronically may neither draw cash in foreign currency in foreign countries nor making international payments except for clause 4 Article 10a of the Circular 19/2016/TT-NHNN.

How to check credit limit in Vietnam?

When a customer has a credit card and needs to check their credit card limit, they can use the following methods:

Method 1: Check through Internet banking, SMS banking, or Mobile banking services on a mobile device

If they have registered for these online services, customers do not need to go to the branches of the credit institution that issued the credit card anymore. They can check directly on their mobile devices at home.

Method 2: Check through ATMs of the credit institution or of affiliated institutions

When the customer inserts the credit card into the card reader, enters the PIN, and selects the credit limit check function, the credit limit information will be displayed.

Method 3: Check the welcome package of the card issuer

Each customer will have a different credit limit depending on factors such as income, occupation, credit history, etc. Therefore, customers can check the welcome package of their credit card issuer to see what package they are in (for example: 2 million dong package, 5 million dong package, 100 million dong package, etc.).

Method 4: Check the credit limit directly at the credit card issuer

When customers need to check their credit card limit, they can go directly to the headquarters or branches of the credit card issuer to request the staff to check.

Method 5: Call the customer service of the credit card issuer to request a check

If customers have not registered for online services or cannot go directly to the credit card issuer, they can call the customer service staff to inquire about their credit limit through the customer service phone number.

Note: The above content is for reference only.

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