Latest regulations on loan application in Vietnam as of July 1, 2024

Tran Thanh Rin

15:36, 01/07/2024

There will be changes to regulations on loan application in Vietnam as of July 1, 2024

Latest regulations on loan application in Vietnam as of July 1, 2024

Latest regulations on loan application in Vietnam as of July 1, 2024 (Internet image)

On 28/6/2024, the Governor of the State Bank of Vietnam issued Circular 12/2024/TT-NHNN, amending Circular 39/2016/TT-NHNN on lending activities of credit institutions and foreign bank branches to customers.

Latest eligibility requirements for a loan as of July 1, 2024

A credit institution in Vietnam shall consider granting a decision to offer a loan to a customer who meets the following requirements:

The customer is a legal entity with civil legal capacity as prescribed by law. Individual customers must be at least 18 years old and have full civil act capacity as prescribed by law. Individuals aged 15 to under 18 must not have lost or restricted civil act capacity as prescribed by law.
The loan must be for a lawful purpose.
There must be a feasible plan for capital use. This condition is not mandatory for small-value loans.

A small-value loan is a loan as regulated in Clause 2, Article 102 of the Law on Credit Institutions 2024 and must not exceed 100,000,000 (one hundred million) VND.

The customer must have the financial capability to repay the loan.

(Article 7 of Circular 39/2016/TT-NHNN (amended by Circular 06/2023/TT-NHNN and Circular 12/2024/TT-NHNN))

Latest regulations on loan application in Vietnam as of July 1, 2024

From July 1, 2024, the latest bank loan documents will follow Article 9 of Circular 39/2016/TT-NHNN (amended by Circular 12/2024/TT-NHNN).

When needing a loan, customers must provide credit institutions with:

Information, documents, and data proving that they meet the loan conditions as prescribed in Article 7 of Circular 39/2016/TT-NHNN (amended by Circular 06/2023/TT-NHNN and Circular 12/2024/TT-NHNN) and other information, documents, and data as guided by the credit institution;
Information about related persons of the customer as prescribed in Clause 2, Article 9 of Circular 39/2016/TT-NHNN (amended by Circular 12/2024/TT-NHNN).

Information about related persons who are individuals, including: full name; personal identification number; nationality, passport number, date and place of issue for foreigners; relationship with the customer.
Information about related persons who are organizations, including: name, enterprise code, head office address, enterprise registration certificate number or equivalent legal documents, legal representative, relationship with the customer.

This regulation applies to the following cases:

- At the time of loan application at commercial banks, cooperative banks, foreign bank branches, if the customer's total outstanding credit (including the outstanding loan amount being applied for) is greater than or equal to 0.1% of the charter capital of the commercial bank, cooperative bank, or foreign bank branch at the end of the most recent working day;

- At the time of loan application at non-banking credit institutions, microfinance institutions, if the customer's total outstanding credit (including the outstanding loan amount being applied for) is greater than or equal to 0.5% of the charter capital of the non-banking credit institution, or microfinance institution at the end of the most recent working day;

- At the time of loan application at people's credit funds, if the customer's total outstanding credit (including the outstanding loan amount being applied for) is greater than or equal to 1% of the charter capital of the people's credit fund at the end of the most recent working day;

- In case of credit institutions with negative charter capital, the respective percentages above are applied to charter capital or allocated capital for foreign bank branches

More details can be found in Circular 12/2024/TT-NHNN which comes into force from July 1, 2024

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- The legal regulations in this article are according to Vietnamese Law;
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