Guidance on Handling Agreements with Interest Rates Exceeding the Prescribed Rates

20:46, 10/07/2024

In case the two parties engage in an asset loan transaction and have an agreement on the interest rate, but the interest rate is higher than the rate stipulated by law, the handling shall be carried out following the guidance in Resolution 01/2019/NQ-HDTP.

asset loan contract with an agreement on interest rates, overdue principal interest, overdue interest on overdue principal exceeding the interest rate, overdue principal interest, and overdue interest on overdue principal as prescribed by law, then:

- The interest rate, overdue principal interest, and overdue interest on overdue principal exceeding the prescribed rate shall not be effective;- The excess interest paid over the prescribed interest rate, overdue principal interest, and overdue interest on overdue principal shall be deducted from the principal debt at the time of interest payment;- The remaining excess interest paid after deducting the principal debt shall be refunded to the borrower.

The aforementioned content is based on Article 9 of Resolution 01/2019/NQ-HDTP effective from March 15, 2019.

Duy Thinh

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