If customers repay of debt before the due date in Vietnam, is there a fee?
According to the current law in Vietnam, a person has a bank loan of 200 million VND with a debt term of 3 years. But in less than 3 years, if the customer has repaid 200 million, will he have to pay fee because of early payment?
In Article 14 of Circular 39/2016/TT-NHNN, there are provisions on fees related to lending activities, as follows:
The credit institution and its customer must agree on collection of fees related to lending operations, including:
1. Exit fee paid by a customer for repayment of debt before the due date.
2. Fee paid for provisional credit limit.
3. Fee paid for syndicated loan arrangement.
4. Fee paid for a commitment to borrowed fund withdrawal during the period from the date of entry into force of the loan agreement to the date of initial disbursement of borrowed fund.
5. Other fees related to lending operations which are specified in relevant legal documents.
Thus, if the customer repays the debt before the due date in Vietnam, a certain fee must still be paid, which is the exit fee paid before maturity. This fee is due to the agreement between the lending bank and the customer when making the debt.
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