Vietnam: Interests on special loans

According to Circular No. 01/2018/TT-NHNN of the State Bank of Vietnam (SBV), interests on special loans granted by the SBV are as follows:

- Special loan interest rate or interest rate on an extended term loan is the interest rate on a refinancing loan as announced by the SBV in each period at the time the relevant special loan is disbursed or extended;

- The interest rate on the overdue principal of a special loan equals 130% of the undue loan interest rate applicable before the loan becomes delinquent, except the case specified in Point b Clause 1 Article 6 herein.

Interests on special loans granted by the Deposit Insurance of Vietnam, the Cooperative Bank of Vietnam and other credit institutions are as follows:

- Special loan interest rate, interest rate on extended term loan and interest rate on the overdue principal of the special loan prescribed in Point a Clause 2, Point a Clause 3, or Point a Clause 4 Article 5 herein shall be subject to agreements between the lender and the borrower;

- Special loan interest rate and interest rate on extended term loan of the special loan prescribed in Point b Clause 2 or Point b Clause 3 Article 5 herein shall be the preferential interest rate as low as 0% and subject to the SBV’s decision. The interest rate on the overdue principal of a special loan equals 130% of the undue loan interest rate applicable before the loan becomes delinquent.

Notably, exemption or reduction of interests on special loans granted by the Deposit Insurance of Vietnam, the Cooperative Bank of Vietnam and other credit institutions shall be subject to agreements between the lender and the borrower.

View details at Circular No. 01/2018/TT-NHNN of the State Bank of Vietnam, effective from January 29, 2018.

-Thao Uyen-

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