Legal Counselling

03 principles of consumer lending by finance companies in Vietnam

11:48, 17/01/2017

On December 30, 2016, the State Bank of Vietnam issued Circular No. 43/2016/TT-NHNN providing for consumer lending by finance companies.

According to Circular No. 43/2016/TT-NHNN of the State Bank of Vietnam, consumer lending by finance companies must comply with the following principles:

- Consumer lending operations shall be performed according to an arrangement between finance companies and customers and conform to Vietnam’s regulations.

- Finance companies will be required to manage, supervise and make a statistical report of consumer lending transactions which is separate from other lending transactions by finance companies.

- Customers applying for loans from finance companies shall be bound to use these loans for the right purposes, make a due repayment of the outstanding amount of principal and interest within an agreed period.

Also according to Circular No. 43/2016/TT-NHNN, since other lending regulations concerning consumer lending operations performed by finance companies are not covered by this Circular, finance companies shall carry out lending operations aimed at meeting living demands.

View more details at Circular No. 43/2016/TT-NHNN of the State Bank of Vietnam, effective from March 15, 2017.

- Thanh Lam -

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