Experience in bank loan maturity

Currently, Clause 5, Article 8 of Circular 39/2016/TT-NHNN (amended in Circular 06/2023/TT-NHNN) stipulates a prohibition on bank loans.

Accordingly, credit institutions are not allowed to lend for capital needs: To repay credit loans at the lending credit institution itself, except for loans to pay loan interest arising during the construction process, in which loan interest costs are calculated in the total construction investment approved by competent authorities according to the provisions of law.

Currently, in the credit market, credit card maturity services are popular. Borrowers need to note that this form is extremely risky and must consider carefully if they want to participate.

When the bank loan matures, people can choose to restructure the debt repayment period.

Accordingly, Clause 10, Article 2 and Article 19 of Circular 39/2016/TT-NHNN stipulate that debt repayment restructuring is the credit institution's approval to adjust the debt repayment period and extend the debt as follows:

- Adjusting the repayment period is when a credit institution agrees to extend the repayment period for part or all of the principal and/or interest of the agreed repayment period (including cases where there is no change in the number of agreed repayment periods), the loan term remains unchanged;

- Debt extension is when a credit institution agrees to extend the period for repayment of principal and/or interest on a loan, beyond the agreed loan term.

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

- If a customer is unable to repay the principal and/or interest on time and is assessed by the credit institution as being able to fully repay the principal and/or interest according to the adjusted repayment period, the credit institution shall consider adjusting the principal and/or interest repayment period in accordance with the customer's repayment source; the loan term shall remain unchanged.

- If a customer is unable to repay the principal and/or interest on the loan within the agreed loan term and is assessed by the credit institution as being able to repay the principal and/or interest in full within a certain period of time after the loan term, the credit institution shall consider extending the loan with a term appropriate to the customer's repayment source.

- Debt repayment restructuring is carried out before or within 10 (ten) days from the due date and agreed repayment period.

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