Law on Credit Institutions No. 32/2024/QH15 (referred to as Law on Credit Institutions 2024) takes effect from July 1 with a series of regulations and guidelines that are optimizing operations and management in the financial sector. In particular, Clause 3, Article 200 and Clause 15, Article 210 of the Law will take effect from August 1. The Law coming into practice contributes to promoting the operations of credit institutions, meeting the requirements of development.
The Law on Credit Institutions 2024, consisting of 15 Chapters and 210 Articles, was officially passed by the National Assembly on January 18, 2024. One of the notable changes in the Law is that it does not require customers to have information on feasible capital usage plans for small loans worth less than VND 100 million. In order to implement the Law, the State Bank has issued Circular No. 12/2024/TT-NHNN amending Circular No. 39/2016/TT-NHNN regulating lending activities of credit institutions and foreign bank branches to customers. On that basis, the State Bank of Vietnam, Quang Ninh branch, has directed credit institutions in the province to implement the provisions of Circular No. 12/2024/TT-NHNN.
Accordingly, credit institutions have been promoting the development, amendment and promulgation of new regulations on the list of loan documents in the direction of simplifying paperwork procedures for loans under 100 million VND. At the same time, building suitable products towards disbursing loans under 100 million VND on bank applications with quick time.
Mr. Luu Xuan Hoan, Deputy Director of BIDV Ha Long, said: Since the beginning of July, customers have not had to provide information on feasible capital usage plans for loans under VND100 million at BIDV Ha Long. Customers only need a loan application and proof of repayment source, and the bank can provide credit capital. To date, BIDV Ha Long has disbursed 18 consumer loans for people under VND100 million. Simplifying loan procedures under VND100 million will help meet people's needs, limit black credit, and speed up approval time.
Mr. Hoang Van Chung, Deputy Director of BAOVIET Bank Quang Ninh, said: For small loans, we are implementing loans for officers, employees, and consultants of member companies of Bao Viet Group in the area. In the coming time, applying new regulations, we will build valuable loan products for many customer groups. The reduced procedures also mean that the loan approval time is shortened, paperwork is reduced, and digital technology is easily applied to lending activities, in line with the digital economy and digital banking.
The Law on Credit Institutions 2024 also has many other new points such as: Prohibiting the sale of optional insurance accompanying loans, adding regulations on reviewing consumer loans, new regulations on early intervention in weak credit institutions, gradually reducing credit in each stage, being allowed to transfer collateral assets such as real estate projects to recover debts...
In addition to the provisions applicable from July 1, Clause 3, Article 200 on transfer of secured assets and Clause 15, Article 210 on transitional provisions of the Law on Credit Institutions 2024 will be implemented from August 1 when the Law on Real Estate Business No. 29/2023/QH15 takes effect.
The Law on Credit Institutions 2024 with its comprehensive, synchronous and profound content is not only an important milestone, but also a step towards sustainable development in the financial sector. This law will play an important role in shaping the banking and credit industry; creating a tight, flexible and transparent system, managing risks, and protecting consumer rights. More than just a set of rules, the Law on Credit Institutions 2024 is also a declaration of the National Assembly's commitment to a strong, ethical and globally oriented financial system.
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