State Bank of Vietnam's responses to questions about 2% interest rate support

State Bank of Vietnam's responses to questions about 2% interest rate support (Source: internet)

Question: In case the customer has another loan that is overdue, the customer's CIC debt group is not group 1, can the customer continue to receive interest rate support for the loan currently receiving interest rate support?

Answer: At the time of repayment of each interest payment term, the loan being supported by the interest rate according to Vietnam's Decree 31/2022/ND-CP and Circular 03/2022/TT-NHNN has no principal balance. If the interest is overdue and/or the interest balance is late, if the principles and conditions are met, the commercial bank will still support the interest rate for the entire interest collection period (regardless of the customer's other loan status and CIC debt group).

Question: The new loan is only overdue principal by less than 10 days, has not been transferred to group 2 debt, and still pays interest on time. Therefore, is it eligible to receive interest support?

Answer: According to the provisions of Point a, Clause 3, Article 4 of Vietnam's Decree 31/2022/ND-CP, loans with overdue principal/interest balances (including overdue/late payment of less than 10 days) are not entitled to interest support for interest payment obligations at the interest payment term in which the time of repayment is within the period of overdue principal balance.

Question: Point a, Clause 3, Article 4 of Vietnam's Decree 31/2022/ND-CP: The interests are due in the period in which overdue principle and/or late interest amount not benefiting from interest subsidies occur. The loan shall only be eligible for interest subsidies again for subsequent due interests after the borrowers have paid all overdue principles and/or late interests.

Is the next interest payment period the repayment period after the overdue period or the repayment period after the period with a date when the customer pays the debt for the overdue debt? For example, the loan is disbursed on March 15, 2022, and pays interest on the 26th of every month.

On May 26, the interest payment for the period April 26-May 26 was delayed, and the interest payment for the period April 26-May 26 was paid on June 8. By June 26 and the following periods, customers will pay their debts normally. So will customers receive interest support from the interest payment period May 26-June 26 (the time to pay the debt on June 26) or from the interest payment period June 26-July 26 (the time to pay the debt on July 26)?

Answer: The repayment period immediately following the period in which the interest payment is due is referred to as the "next interest payment period." In this example, on May 26, the customer is late in paying interest for the period April 26-May 26, so they will not receive interest support. On June 26, the loan no longer has an outstanding principal/interest balance. Thus, the "next interest payment period" in this example is the period May 26-26 (the next period of the period April 26-May 26), and customers are supported with interest rates at the time of debt repayment on June 26 (period 26/5-26/6).

Question: In case a customer borrows under the loan limit, and only 1 disbursement within the limit is extended, the suspension of HTLS only applies to loans with disbursements within the loan extension limit or applies to the entire loan limit. set of loans disbursed within the limit.

Answer: According to the provisions of point b, clause 3, Article 4 of Vietnam's Decree 31/2022/ND-CP, the loan extension is not eligible for interest rate support for the debt extension period.

According to the provisions of Clauses 1 and 4, Article 27 of Vietnam's Circular 39/2016/TT-NHNN, for credit line loans, credit institutions determine and agree with customers a maximum loan balance to be maintained for a certain period of time.; Within the loan limit, the credit institution makes loans each time and signs a loan agreement.

Thus, 01 loan within the loan extension limit is not eligible for interest rate support for the debt extension period, other loans within the loan limit without extension will still be supported with interest rates as prescribed in Decree 31/2022/ND-CP.

For example, commercial banks and customers sign a limit contract of 200 billion; Based on this limit contract, commercial banks and customers sign 02 specific loan agreements to be supported with interest rates (the first loan is VND 150 billion disbursed on February 1, 2023; the loan term is 6 months to August 1, 2023; the second loan of VND 50 billion is disbursed on June 1, 2023, the loan term is 6 months until December 1, 2023).

In June 2023, the first loan was approved to extend the repayment period for another 2 months, until October 1, 2023.

Chau Thanh

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE