Is the Bank Entitled to Verify the Purpose of Loan Utilization by Individual Borrowers?

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I would like to ask: According to current legal regulations, does the bank have the right to check the purpose of the loan use by an individual borrower?

In Article 24 of Circular 39/2016/TT-NHNN, there are provisions regarding the inspection of loan usage, as follows:

- The customer is responsible for using the loan funds and repaying the debt according to the agreed terms; reporting and providing documents to prove the usage of the loan funds as requested by the credit institution.

- The credit institution has the right to inspect and supervise the loan usage and debt repayment by the customer according to the internal procedures specified in point c clause 2 Article 22 of this Circular.

=> Thus, according to the aforementioned regulations, the bank has the right to inspect and supervise the loan usage by the borrower.

Respectfully.

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