Consider issuing a Circular to support solving difficulties for customers borrowing to serve their life and consumption needs in Vietnam
What are requests of the Goverment to the State Bank of Vietnam in support solving difficulties for customers borrowing to serve their life and consumption needs? - Ms. Thuy (HCMC).
The Goverment considers issuing a Circular to support solving difficulties for customers borrowing to serve their life and consumption needs in Vietnam
On April 23, 2023, the Government issued Resolution 59/NQ-CP in 2023 on solutions to support and remove difficulties for borrowers to serve their life and consumption needs.
As prescribed in Article 1 of Resolution 59/NQ-CP in 2023, the Government proposes to the State Bank of Vietnam as follows:
The Government agrees with the proposal of the State Bank of Vietnam in Report No. 57/TTr-NHNN dated April 22, 2023 on solutions to support and remove difficulties for borrowers to serve their life and consumption needs. The State Bank of Vietnam shall urgently consider and decide according to its assigned functions, tasks and authority
and soon issue a Circular to guide credit institutions in their implementation, ensuring appropriateness, strictness, feasibility, effectiveness, openness, transparency, compliance with legal regulations and safety of the system of credit institutions; strengthen inspection, inspection, control and supervision of policy implementation in accordance with the law, limit risks, and prevent abuse, profiteering, loss or violation of the law.
Thus, the Government requests that the State Bank of Vietnam, according to its assigned functions, tasks and authority, urgently implement:
+ Consider, decide and soon issue a Circular guiding credit institutions to ensure appropriate, strict, feasible, effective, public, transparent and in accordance with legal regulations and safety of the system of credit institutions;
+ Strengthen inspection, inspection, control and supervision of policy implementation in accordance with the law, limit risks, and prevent abuse, profiteering, loss or violation of the law.
What are regulations on term of loan to serve their life and consumption needs in Vietnam?
Pursuant to Article 31 of the Circular 39/2016/TT-NHNN stipulating term of loan to serve their life and consumption needs in Vietnam as follows:
Loan term
1. The credit institution and its customer shall agree on the loan term by referring to solvency of the customer, source of loan fund and the remaining duration of operation of the credit institution.
2. The term of a loan offered to a customer that is a foreign citizen residing within the territory of Vietnam shall not exceed the residual duration of legal residence in Vietnam.
As regulations above, the credit institution and its customer shall agree on the loan term by referring to solvency of the customer, source of loan fund and the remaining duration of operation of the credit institution.
The term of a loan offered to a customer that is a foreign citizen residing within the territory of Vietnam shall not exceed the residual duration of legal residence in Vietnam.
What are lending methods in order to serve their life and consumption needs in Vietnam?
Pursuant to Article 30 of the Circular 39/2016/TT-NHNN stipulating lending methods in order to serve their life and consumption needs in Vietnam as follows:
Lending methods
The credit institution shall agree with its customer on application of the following lending methods:
1. The lending methods shall be subject to regulations set forth in Clause 1, 4 and 6 Article 27 hereof.
2. Those other than the aforesaid lending methods shall be combined with the ones referred to in Clause 1 of this Article as appropriate to business conditions of the credit institution and loan features.
Pursuant to Clause 1, 4 and 6, Article 27 of the Circular 39/2016/TT-NHNN stipulating as follows:
Lending methods
The credit institution shall agree with its customer on application of the following lending methods:
1. One-shot loan: The credit institution and its customer implement lending procedures and conclude a loan agreement in each time when a loan is needed.
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4. Line of credit loan: The credit institution determines and agrees with its customer on the maximum outstanding amount of debt maintained during a specified time period. Within a credit line, the credit institution will extend a one-shot loan. At least once a year, the credit institution will consider redefining the maximum outstanding amount of debt and duration of maintenance thereof.
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6. Current account overdraft facility: The credit institution approves an overdraft limit within which the customer is allowed to spend more money than the amount available in the current account in order to render payment services on that current account. The overdraft limit is maintained within the maximum period of 01 (one) year.
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As regulations above, there are 04 lending methods in order to serve their life and consumption needs in Vietnam as follows:
- One-shot loan
- Line of credit loan
- Current account overdraft facility
- Other methods
What documents are included in the loan documentation in order to serve their life and consumption needs in Vietnam?
Pursuant to Clause 1 Article 32 of the Circular 39/2016/TT-NHNN, the loan documentation in order to serve their life and consumption needs in Vietnam includes:
- Loan application dossiers;
- Loan agreement;
- Report on income generated by the customer during the loan term under the credit institution’s instructions;
- Documents relating to loan guarantee;
- Decision to offer a loan signed by the authorized person; if the decision is collectively made, the minutes recording that decision must be included;
- Materials arising during the period of use of the loan which relate to the loan agreement under the credit institution’s instructions.
Best regards!
