Interest rate of special loans from credit institutions placed under special control in Vietnam

Interest rate of special loans from credit institutions placed under special control in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Lending rules and settlement of special loans in Vietnam

Lending rules and settlement of special loans in Vietnam according to Article 5 of Circular 08/2021/TT-NHNN (amended in Circular 02/2022/TT-NHNN) are as follows:

- With regard to the special loans specified in Points b, c, d, dd Clause 1, Point c Clause 2, Point c Clause 3, Point b Clause 4 Article 4 of Circular 08/2021/TT-NHNN,

The loan amount, loan purposes, collateral, lending interest rate, loan term, debt repayment, interest exemption or reduction, settlement of special loans granted (including extension of special loan, interest rate on overdue principal amount) shall comply with the approved restructuring plan or transfer plan.

With regard to the special loans specified in Point d Clause 1 Article 4 of Circular 08/2021/TT-NHNN, comply with regulations prescribed in Clause 2 Article 3 of the Law No. 17/2017/QH14

- Special loans with a preferential interest rate as low as 0% granted by SBV shall be subject to the Prime Minister’s decision.

- Special loans specified in Point a Clause 1, Point b Clause 2, Point b Clause 3 Article 4, Article 6 of Circular 08/2021/TT-NHNN shall be granted in accordance with regulations herein;

The contents of special loans which have been decided by the Prime Minister or approved under the restructuring plan or transfer plan shall be performed according to such the Prime Minister’s decision or approved plan or transfer plan.

- With regard to the special loans specified in Point a Clause 2, Point a Clause 3, Point a Clause 4 Article 4 of Circular 08/2021/TT-NHNN:

The loan amount, loan purposes, collateral, lending interest rate, loan term, debt repayment, interest exemption or reduction, settlement of special loans granted (including extension of special loan, interest rate on overdue principal amount) shall be performed according to specific agreements between the lender and the borrower.

- Currency unit used in extending special loans is Vietnamese dong (VND).

- Acceptance and disposition of collateral shall comply with regulations herein and regulations of law on secured transactions.

2. Interest rate of special loans from credit institutions placed under special control in Vietnam

Interest rate of credit institutions placed under special control in Vietnam are specially controlled according to Article 11 of Circular 08/2021/TT-NHNN as follows:

- With regard to the special loan specified in Point a Clause 1 Article 4 of Circular 08/2021/TT-NHNN:

+ The lending interest rate and the interest rate charged on an extended special loan shall be equal to the refinancing rate announced by SBV in each period at the time the relevant special loan is disbursed or extended;

+ The interest rate charged on the overdue principal of a special loan shall be 130% of the interest rate charged on due repayment determined on the day in which the debt becomes delinquent;

+ No interest will be charged on late payment of outstanding interests.

- With regard to the special loan specified in Point b Clause 2 or Point b Clause 3 Article 4 of Circular 08/2021/TT-NHNN:

+ The lending interest rate and the interest rate on the extended special loan shall be the preferential interest rate as low as 0% according to SBV's decision;

+ The interest rate charged on the overdue principal of a special loan shall be 130% of the interest rate charged on due repayment determined in the day in which the debt becomes delinquent;

+ No interest will be charged on late payment of outstanding interests.

Quoc Dat

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