The State Bank of Vietnam (SBV) is drafting a Circular amending and supplementing a number of articles of Circular No. 39/2016/TT-NHNN dated December 30, 2016 regulating lending activities of credit institutions and foreign bank branches to customers.
Draft Circular amending and supplementing Clause 2, Article 4 on principles of lending and borrowing capital.
Specifically, lending activities of credit institutions to customers are carried out according to the agreement between the credit institution and the customer, in accordance with the provisions of this Circular and relevant legal provisions including laws on environmental protection.
Customers borrowing capital from credit institutions must ensure that they use the loan for the committed purpose, repay the principal, interest, and fees in full and on time as agreed with the credit institution.
In addition, the draft Circular amends and supplements Clause 3, Article 7 on loan conditions.
Accordingly, credit institutions consider and decide to lend when customers meet the following conditions:
Firstly, the customer is a legal entity with civil legal capacity as prescribed by law. The customer is an individual from 18 years of age or older with full civil capacity as prescribed by law or from 15 years of age to under 18 years of age who has not lost or had limited civil capacity as prescribed by law.
Second, the need to borrow capital for legal purposes.
Third, there is a feasible plan for using the capital. This provision is not required for small loans.
Regarding regulations on small-value loans, the Law on Credit Institutions 2024 has provisions on amending and supplementing regulations on credit approval, checking loan use, and simplifying procedures for small-value loans.
Accordingly, in the draft Circular, the State Bank has amended and supplemented a number of regulations to align with the provisions of the Law on Credit Institutions 2024. In particular, the State Bank proposes that for loans with a small value not exceeding VND 100 million, customers do not have to provide a feasible capital use plan or information about related persons; but stipulates that credit institutions have measures to inspect and monitor the use of loan capital and debt repayment by customers, ensuring the ability to recover the principal and interest of the loan in full and on time as agreed, and the use of loan capital for the right purpose.
According to the State Bank of Vietnam, this regulation is suitable for the characteristics of small loans, contributing to creating more favorable conditions for customers to access bank credit capital with simpler procedures, contributing to expanding lending activities to serve life and consumption, thereby limiting "black credit".
Loan application form
Draft Circular amending and supplementing Article 9 on loan application documents. Accordingly, when in need of a loan, customers must send to the credit institution:
- Information, documents, data proving eligibility for loans according to regulations and other documents as instructed by the credit institution.
- Information about related persons as prescribed in the Law on Credit Institutions, regulations of the State Bank on limits and safety ratios in the operations of credit institutions, except in cases where the loan value is small.
Information about the individual concerned, including: full name; personal identification number; nationality, passport number, date of issue, place of issue for foreigners; relationship with the customer.
Information about the related person is an organization, including: name, business registration number, head office address of the enterprise, business registration certificate number or equivalent legal documents, legal representative, relationship with the customer.
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