Experience regarding bank loan maturity

Photo credit: Tra My.

Currently, Clause 5 of Article 8 of Circular 39/2016/TT-NHNN (amended by Circular 06/2023/TT-NHNN) prohibits borrowing for bank loan refinancing.

Accordingly, credit institutions are prohibited from lending for the following capital needs: To repay loans granted by the same lending institution, except in cases where loans are used to pay interest incurred during the construction of a project, and the interest expense is included in the total construction investment approved by the competent authority in accordance with the law.

Currently, credit card debt refinancing services are booming in the credit market. Borrowers should be aware that this form of lending is extremely risky and must carefully consider their options before participating.

When bank loans mature, people can choose to restructure their repayment terms.

Accordingly, Clause 10 of Article 2 and Article 19 of Circular 39/2016/TT-NHNN stipulate that debt restructuring is the act of a credit institution approving the adjustment of the repayment period or extending the debt as follows:

- Adjusting the repayment period means that the credit institution approves an extension of the repayment period for part or all of the principal and/or interest of the loan within the agreed repayment period (including cases where the number of agreed repayment periods remains unchanged), while the loan term remains unchanged;

- Loan extension is when a credit institution approves an extension of the repayment period for the principal and/or interest on a loan, beyond the agreed-upon loan term.

Credit institutions shall consider and decide on restructuring the repayment period based on the customer's request, the credit institution's financial capacity, and the assessment of the customer's repayment ability, as follows:

- If a customer is unable to repay the principal and/or interest on the loan on time, and the credit institution assesses that the customer is capable of fully repaying the principal and/or interest according to the adjusted repayment schedule, the credit institution will consider adjusting the repayment schedule for the principal and/or interest to suit the customer's repayment source; the loan term will remain unchanged.

- If a customer is unable to repay the principal and/or interest on the loan by the agreed-upon term, and the credit institution assesses that the customer is capable of fully repaying the principal and/or interest within a certain period after the loan term expires, the credit institution will consider extending the loan term for a period suitable to the customer's repayment capacity.

- The restructuring of the repayment period shall be carried out before or within 10 (ten) days from the due date of the agreed repayment period.

Source: https://laodong.vn/kinh-doanh/kinh-nghiem-ve-dao-han-vay-ngan-hang-1278679.ldo