Loan amount and loan limit of cooperative fund in Vietnam

Duc Thao

14:34, 02/04/2021

Recently, the Government of Vietnam issued Decree 45/2021/ND-CP on the establishment, organization and operation of the Cooperative Development Support Fund.

Based on the plan for use of borrowed money, financial capability, capacity to repay debts, and loan security of each client, and the loan limit prescribed in Vietnam's Decree 45/2021/ND-CP the cooperative fund shall consider and decide the specific loan amount given to that client in conformity with its available capital sources and financial capability.

Loan limit of cooperative fund in Vietnam:

- Total loan outstanding balance of a client shall not exceed 15% of the existing charter capital of the cooperative fund at the time it decides to grant loans;

- Total loan outstanding balance of a client and related persons shall not exceed 25% of the existing charter capital of the cooperative fund at the time it decides to grant loans.

Cooperative funds provide syndicated loans according to specific agreements between such cooperative funds and clients, and in conformity with regulations herein and relevant laws in Vietnam.

More details can be found in: Vietnam's Decree 45/2021/ND-CP takes effect from May 15, 2021.

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