New Points on Lending Activities of People's Credit Funds

06:23, 11/07/2024

This is the content stipulated in Circular 06/2017/TT-NHNN issued by the State Bank of Vietnam on July 05, 2017.

Accordingly, Circular 06 stipulates the lending activities of people's credit funds as follows:

- People's credit funds may lend to customers who are legal entities or individuals who are not members but have deposits at the people's credit fund, based on the guarantee of the deposit issued by the people's credit fund. The total loan amount must not exceed the deposit balance at the time of the loan decision, and the loan term must not exceed the remaining term of the deposit.

- People's credit funds may lend to members of poor households with permanent residence in the operating area of the people's credit fund in cases where the poor household is not a member of the people's credit fund. If multiple members of a poor household are borrowing, they must either all sign or authorize one member to represent the poor household in signing the loan agreement with the people's credit fund. The poor household must be approved by the District People's Committee. The procedures, processes, and documentation for lending to poor household members shall comply with the current credit policies applicable to members.

See details in Circular 06/2017/TT-NHNN effective from September 01, 2017.

-Thao Uyen-

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