Is it mandatory to have a plan for using loaned funds when borrowing from a bank?
At Article 7 of Circular No. 39/2016/TT-NHNN, it is stipulated:
Credit institutions shall consider and decide on loans when customers meet the following conditions:
The customer is a legal entity with civil legal capacity according to the provisions of law. The customer is an individual who is 18 years or older with full civil act capacity as prescribed by law, or between 15 and under 18 years old, not having lost or having their civil act capacity limited according to the provisions of law.
The need for loans to be used for legal purposes.
Having a feasible plan for the use of the loan.
Having financial ability to repay the debt.
In case the customer borrows from the credit institution at the loan interest rate specified in Clause 2, Article 13 of this Circular, the customer must be evaluated by the credit institution as having transparent and sound financial conditions.
=> Therefore, according to the above regulations, when applying for a bank loan, it is mandatory to have a feasible plan for the use of the loan.
Sincerely.
