Procedures for applying for mortgage loan for credit institutions in Vietnam

Procedures for applying for mortgage loan for credit institutions in Vietnam (Internet image) 

Circular 17/2011/TT-NHNN stipulates the procedures for lending secured by the mortgage of valuable papers by the State Bank of Vietnam to credit institutions as follows:

1. Application for mortgage loan

Upon availability of a demand for mortgage loan at the State Bank, the credit institution shall send an (01) application file for mortgage loan directly or by post to the State Bank of Vietnam, the application file includes:

• An application for mortgage loan at the State Bank in the form of lending secured by mortgage of valuable papers (in accordance with Form 01/NHNN-CC);

• List of valuable papers proposed to mortgage for loan at the State Bank of Vietnam with the confirmation of the issuer, issuing agent or depository organization (in accordance with Form 02a/NHNN-CC);

• Several norms of capital source and use of capital in Vietnamese Dong in accordance with Form 03/NHNN-CC; the transaction performance of the credit institution with the State Bank in accordance with Form 04/NHNN-CC; Calculation sheet of the demand for loan funds in VND from the State Bank in accordance with Form 05/NHNN-CC;

• The latest balance sheet of the credit institution (the original).

2. Approving and refusing the application for c of credit institution

• Based on the application file for mortgage loan of the credit institution, the State Bank shall consider the application for loan of the credit institution and, within a maximum period of 02 working days since the full receipt of the valid application file for mortgage loan as provided for in Article 15 of this Circular, the State Bank shall give a written notice to the borrowing credit institution on the approval (in accordance with Form 06a/NHNN-CC) or disapproval to the mortgage loan (in accordance with Form 06b/NHNN-CC) and send such notice to related units.

• The State Bank of Vietnam shall not consider the application for mortgage loan of a credit institution when that credit institution fails to fully satisfy conditions as stated in Article 10 of this Circular.

More details can be found in Circular 17/2011/TT-NHNN, which comes into force from October 1, 2011.

Thuy Tram

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