Borrowing from the Credit Fund: Can Interest Rates be Known in Advance?

Borrowing from Credit Funds: Can you know the interest rate beforehand?

Article 91 of the Law on Credit Institutions 2010 stipulates the interest rates and fees in the business activities of credit institutions as follows:

1. Credit institutions are entitled to establish and must publicly post the interest rates for mobilizing capital and service provision fees in their business activities.

2. Credit institutions and customers have the right to negotiate interest rates and credit extension fees in the credit institution's banking activities as prescribed by law.

3. In the event of unusual banking activities, to ensure the safety of the credit institution system, the State Bank has the right to prescribe the mechanism for determining fees and interest rates in the business activities of credit institutions.

Clause 1, Article 4 of this Law also states:

A credit institution is an enterprise that performs one, several, or all banking activities. Credit institutions include banks, non-bank credit institutions, microfinance institutions, and people's credit funds.

Therefore, when you borrow from a Credit Fund, the interest rate will be posted publicly. Thus, you will know the interest rate in advance when borrowing.

Can the Credit Fund accept deposits from individuals who are not members?

Clause 1, Article 118 of the Law on Credit Institutions 2010 stipulates the activities of the People's Credit Fund as follows:

1. Accept deposits in Vietnamese Dong in the following cases:

a) Accept deposits from members;

b) Accept deposits from organizations and individuals who are not members as prescribed by the State Bank.

The People's Credit Fund is entitled to accept deposits from individuals who are not members according to the regulations of the State Bank.

Sincerely!