| THE STATE BANK OF VIETNAM | THE SOCIALIST REPUBLIC OF VIETNAM |
| No.: 18/VBHN-NHNN | Hanoi, July 12, 2023 |
PRESCRIBING LENDING TRANSACTIONS OF CREDIT INSTITUTIONS AND FOREIGN BANK BRANCHES WITH CUSTOMERS
The Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam prescribing lending transactions of credit institutions and foreign bank branches with customers, coming into force from March 15, 2017, is amended by:
The Circular No. 06/2023/TT-NHNN dated June 28, 2023 of the Governor of the State Bank of Vietnam providing amendments to the Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam prescribing lending transactions of credit institutions and foreign bank branches with customers, coming into force from September 01, 2023.
Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;
Pursuant to the Law on Credits Institutions dated June 16, 2010;
Pursuant to the Government’s Decree No. 156/2013/ND-CP dated November 11, 2013 defining functions, tasks, powers and organizational structure of the State Bank of Vietnam (SBV);
At the request of the Director of the Monetary Policy Department;
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Article 1. Scope and regulated entities
1. This Circular deals with lending transactions of credit institutions and/or foreign bank branches (hereinafter referred to as “credit institutions”) with customers.
2. This Circular shall not cover lending transactions between credit institutions.
For the purposes of this Circular, the terms below shall be construed as follows:
1. Lending refers to a form of extension of a line of credit under which a credit institution offers or undertakes to offer a customer a sum of money for specific uses within an agreed time period provided that the customer adheres to the principle that both principal and interest arising must be repaid.
2. Lending credit institution refers to a credit institution established and operating under the Law on Credit Institutions, including:
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b) Cooperative banks;
c) Non-bank credit institutions;
d) Microfinance institutions;
dd) People’s credit funds;
e) Foreign bank branches.
3. Customer performing a borrowing transaction with a credit institution (hereinafter referred to as “borrowing customer”) refers to any legal entity or individual, including:
a) Legal entities established and operating within the territory of Vietnam and/or those established abroad and legally operating within the territory of Vietnam;
b) Vietnamese and/or foreign nation.
4. Loan for personal or living expenses (consumer loan) refers to a credit institution's granting a loan to an individual customer’s demands for borrowed funds to pay consumption or living expenses for his/her personal or family purposes.
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6. Plan to use a borrowed fund is a collection of information about use of the borrowed fund by a customer, including at least the following information:
a) Total fund needed, details of capital constituents of total fund needed (inclusive of the fund borrowed from credit institutions); purposes of fund; fund spending time;
b) Customer’s available sources of debt repayment;
c) [2] The plan or project serving business purpose or living purpose such as house purchase, construction or renovation or receipt of transfer of land use rights for building house.
7. Financial capacity refers to a customer’s capacity with respect to capital, asset or financial resources.
8. Loan term refers to a period of time starting on the day following the day when a credit institution begins to disburse the borrowed fund to a customer and ending on the day when that customer has to repay principal and interest amounts in full as agreed upon between the credit institution and customer. Where the last day of loan term is a holiday or weekly day-off, the next day will be taken as the last day of loan term. If a loan term is not a full day, the provision enshrined in the Civil Code on the date of commencement of a term is applied.
9. Repayment period refers to a set period of time constituting the agreed loan term and, at the end of each of these time periods, a customer is obliged to repay loan principal and/or interest amounts in part or in whole to a credit institution.
10. Debt rescheduling refers to a credit institution’s consent to adjustment to a repayment period or extension of a loan term according to the following provisions:
a) Adjustment to a repayment period is defined as a credit institution's agreeing to extend the agreed period of repayment of loan principal and/or interest in part or in full (including cases in which there is no change to the number of agreed repayment periods) while the loan term is kept unchanged;
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11. Overdue principal is composed of:
a) The outstanding amount of principal to become delinquent as prescribed in Article 20 hereof;
b) The outstanding amount of principal on which a customer is delinquent in the event of a credit institution’s termination of a loan or collection of debt prior to the due date as stipulated by Clause 1 Article 21 hereof.
12.[3] Loan for financial offsetting refers to a credit institution’s grant of a loan to a customer to offset that customer’s own funds or funds borrowed from another individual or organization (other than a credit institution) used for paying or covering its costs incurred from a plan or project serving business purpose or living purpose.
Article 3. Autonomy of a credit institution
1. A credit institution shall have autonomy over its lending operations and assume sole responsibility for its own lending decision. None of entities or individuals shall be allowed to illegally interfere in lending operations performed by a credit institution.
2. A credit institution shall be accorded the right to refuse customer’s demands in violation of regulations hereof and loan agreements.
Article 4. Lending and borrowing rules
1. Lending transactions between a credit institution and a customer shall be performed according to an arrangement between that credit institution and customer and in conformity with regulations laid down herein and other relevant laws, including the legislation on environmental protection.
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Article 5. Application of relevant legal instruments
1. Lending operations carried out by a credit institution shall be required to comply with provisions of the Law on Credit Institutions, this Circular and other relevant legislation.
2. With respect to specific lending operations covered by regulations provided in particular documents of the Government, Prime Minister and State Bank of Vietnam, these regulations shall apply; to the extent of whether particular documents of the Government, Prime Minister and State Bank of Vietnam prescribe application of this Circular or contents relating to lending operations are not prescribed in particular documents, relevant provisions set forth in this Circular shall apply. Specific lending operations encompass:
a) Syndicated loan;
b) Loan extended to customers for their outward investments;
c) Loan extended to customers doing business operations in socio-economic policies and programs of the Government or Prime Minister;
d) Foreign-currency loan extended to resident customers;
dd) Foreign loan extended to, or collection of foreign debt owed by, non-resident customers;
e) Loan offered by people's credit funds or microfinance institutions;
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h) Other specific loans prescribed by particular documents of the Government, Prime Minister or State Bank of Vietnam.
1. A loan agreement shall be made either in Vietnamese or both in Vietnamese and other foreign language.
2. With respect to other documents concerning lending operations that use any foreign language, if there is any request of a regulatory authority for translation into Vietnamese, the translation copy must be certified by a competent person of a credit institution, or be legally notarized or authenticated.
Article 7. Eligibility requirements for a loan
A credit institution shall consider granting a decision to offer a loan to a customer who meets the following requirements:
1. If that customer is a legal person, it must have civil capacity in accordance with the civil law jurisdictions. If that customer is a natural person, (s)he must be aged exactly 18 years or older and have full capacity for civil conduct in accordance with the civil law jurisdictions, or must be aged between exactly 15 and nearly 18 years and must not have his/her incapacity or restricted capacity for civil conduct as provided by laws.
2. Demonstrate that customer’s demands for a loan to be used for legally accepted purposes.
3. Establish that customer’s plan for effective use of borrowed fund.
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5.[4] (abrogated).
Article 8: Rejected loan demands [5]
Credit institutions shall not be allowed to approve the following loan demands:
1. Loans used for doing business or investing in sectors or activities prohibited by the Investment Law.
2. Loans used for paying expenses or meeting financial demands of business or investment in sectors or activities prohibited by the Investment Law and other transactions or activities prohibited by laws.
3. Loans used for purchasing or using goods or services in the list of prohibited sectors and activities under the Investment Law.
4. Loans used for buying gold bullion.
5. Loans used for repaying loan debts owed to lending credit institutions, except those used for paying loan interests arising during the construction process which are accounted for in the total construction cost estimate approved by a competent authority in accordance with regulations of law.
6. Loans used for repaying foreign loan debts (excluding foreign loans granted in the form of deferred payment for purchased goods) or repaying loan debts owed to other credit institutions, except for a loan used for making early repayment of an existing loan that meets the following conditions:
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b) The old loan has not yet undergone any debt rescheduling.
7. Loans used for sending money to deposit accounts.
8. Loans used for making capital contribution to, buying or receiving transfer of stakes of a limited liability company or a partnership, or shares of a joint-stock company that is not yet listed on the securities market or registered for trading on the Upcom system.
9. Loans used for making capital contributions under capital contribution contracts, investment cooperation contracts or business cooperation contracts for executing investment projects that are unfit for sale or for business operation as prescribed by laws when the credit institution issues its lending decision.
10. Loans used for financial offsetting purposes, except for those meeting the following conditions:
a) The customer has used their own funds for paying costs incurred from their business project for a period of less than 12 months by the time of grant of lending decision by the credit institution;
b) Costs paid using the customer’s funds for executing a business project are costs to be covered using the fund borrowed from the credit institution under the plan to use borrowed fund submitted to the credit institution when applying for a medium-term or long-term loan for executing that business project.
When there is a demand for a loan, a customer must send a credit institution documents evidencing its eligibility for such loan in accordance with Article 7 hereof and others as referred to in the credit institution's instructions.
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A credit institution shall consider granting a decision to offer a loan to a customer which is divided into the following categories:
1. Short-term loan, defined as loans having the maximum loan term of 01 (one) year.
2. Medium-term loan, defined as loans having the loan term between above 01 (one) year and 05 (five) years at the maximum.
3. Long-term loan, defined as loans having the loan term of more than 05 (five) years.
Article 11. Currency units used for extending loans or repaying debts
1. Credit institutions and their customers shall agree on a loan denominated either in Vietnamese dong or another foreign currency unit as appropriate to provisions laid down herein and relevant legislation.
2.[6] Currency unit used for debt repayment is the one used in a loan. The repayment of loan debts in another currency shall be subject to specific agreements between the credit institution and the customer in conformity with relevant law provisions.
A credit institution shall consult the plan to use the borrowed fund, financial capability of a borrowing customer, credit lines extended to the borrowing customer and available capital source of the credit institution in order to enter into an agreement with the customer on the loan limit.
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1. A credit institution and its customer shall agree on the interest rate depending on capital demands and supplies on the market, loan demands and creditworthiness of customers, unless otherwise stipulated by the State Bank's regulations on the maximum interest rate set forth in Clause 2 of this Article.
2.[7] If the customer has been rated transparent and healthy in its financial status by the credit institution, the credit institution and the customer shall agree on the interest rate on short-term loan in VND which shall not exceed the maximum lending interest rate decided by SBV’s Governor over periods of time in order to meet certain demands for borrowed fund as follows:
a) Loans taken out to support the agricultural and rural development sector under the Government’s regulations on credit policies for agricultural and rural development;
b) Loans taken out to implement the export business plan in accordance with the Law on Commerce and its instructional documents;
c) Loans taken out to finance business activities of small and medium-sized enterprises under the Law and the Government’s regulations on support for development of small and medium-sized enterprises;
d) Loans taken out to develop ancillary industries under the Government’s regulations on development of ancillary industries;
dd) Loans taken out to finance business operations of enterprises that apply high technologies included in the List of prioritized high technologies approved by the Prime Minister and other high-tech enterprises under the provisions of the Law on High Technology and its instructional documents.
3. Terms and conditions of an agreement on the interest rate shall comprise interest rate levels and methods for calculating the interest rate on a loan. Where the interest rate is not converted into %/year and/or the method for calculating the interest rate based on the actual outstanding amount of debt and time length of maintenance thereof is not applied, the loan agreement must include terms and conditions of the interest rate converted into %/year (one year is calculated as three hundred and sixty five of days) according to the actual outstanding amount of debt and time length of maintenance thereof.
4. If a customer fails to repay or fully repay the agreed amount of loan principal and/or interest at the payment due date, the customer shall be obliged to repay loan interest as prescribed hereunder:
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b) If a customer fails to make due payment of interest as prescribed by Point a of this Clause, that customer must pay late payment interest charged at the interest rate agreed upon between the credit institution and customer which is not allowed to exceed 10%/year interest rate on the outstanding balance of late payment interest in proportion to the period of late payment;
c) Where a debt has become delinquent, the customer owing a delinquent debt must pay interest on the outstanding amount of principal which is overdue in proportion to the period of late payment for which the interest rate charged is not allowed to exceed 150% of the interest rate charged on due repayment that is determined upon the date of such debt becoming delinquent.
5. Where the variable interest rate is applied, a credit institution and customer must enter into an agreement on principles and factors for determination of the variable interest rate, and on the date of adjustment to the loan interest rate. In cases where referring to factors for determination of the variable interest rate results in different loan interest rates, the credit institution shall apply the lowest loan interest rate.
Article 14. Fees related to lending activities
The credit institution and its customer must agree on collection of fees related to lending operations, including:
1. Exit fee paid by a customer for repayment of debt before the due date.
2. Fee paid for provisional credit limit.
3. Fee paid for syndicated loan arrangement.
4. Fee paid for a commitment to borrowed fund withdrawal during the period from the date of entry into force of the loan agreement to the date of initial disbursement of borrowed fund.
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Article 15. Borrowed fund guarantee
1. The credit institution and its customer shall agree on whether or not a security for a borrowed fund is implemented. Agreement on security for the borrowed fund between the credit institution and its customer must conform to regulations of the laws on security and relevant legislation.
2. The credit institution shall make its decision on and bear responsibility for any unsecured loan.
3. The customer and guarantor must liaise with the credit institution to treat assets pledged as collateral for loans when there are sufficient grounds for such treatment under terms and conditions of loan agreements, loan guarantee contracts, laws and regulations.
Article 16. Provision of information
1. The credit institution shall be responsible for providing the customer with all necessary information before establishment of a loan agreement, including such information as loan interest rate, principles and factors for determination of interest rate, date of determination of interest rate in case of application of variable interest rate; interest rate charged for overdue principal; interest rate charged for interest of which payment is late; method for calculation of loan interest rate; type and amount of loan fee; criteria for classifying borrowing customers by loan interest rates as referred to in Clause 2 Article 13 hereof.
2. The customer shall provide information for the credit institution and assume legal responsibility for accuracy, authenticity and integrity of submissions to the credit institution, including the following documents or materials:
a) Those stipulated by Article 9 hereof;
b) Report representing use of loan and evidence that the loan fund is used to serve the purposes specified in the loan agreement;
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Article 17. Assessment of loan application and grant of decision to offer a loan
1. The credit institution shall assess customer’s ability to satisfy loan requirements as prescribed by Article 7 hereof in order to consider granting a decision to offer a loan. In the course of such assessment, the credit institution can use the internal credit rating system associated with information available at the National Credit Information Center of Vietnam and other communications channels.
2. The credit institution must establish loan approval procedures according to the principle of assignment of responsibilities in the assessment and decision-making stages.
3. In the event of refusal to offer a loan, the credit institution shall notify the customer submitting loan application of reasons for such rejection.
Article 18. Repayment of loan principal and interest
1. The credit institution and its customer must agree on the period of loan principal and interest repayment in either of the following manners:
a) Separate periods of repayment of loan principal and interest;
b) Same period of repayment of loan principal and interest.
2. The credit institution and its customer shall agree on repayment of debt prior to the due date.
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4.[8] The credit institution and its customer must agree on the priority order for collection of principal and interest amounts. With respect to a loan overdue, the credit institution shall observe the order in which collection of principal amount will take priority over that of interest amount. With respect to a loan for which one or some payments are past due, the credit institution shall collect debts according to this order: overdue principal amount, unpaid interest on overdue principal amount, principal amount due, and interest on the principal amount which is not paid when due.
The credit institution shall consider deciding whether the debt rescheduling is necessary at the customer’s request and depending on the financial capability of that credit institution and results of assessment of the customer's capability to repay debt as prescribed hereunder:
1. If the customer is incapable of making due repayment of loan principal and/or interest, and is rated by the credit institution as having capacity for fully repaying loan principal and/or interest within the adjusted repayment period, the credit institution shall consider adjusting the period of repayment of that principal and/or interest as appropriate to the customer's source of financing for debt repayment without prejudice to the loan term.
2. If the customer is incapable of paying off loan principal and/or interest in full within the agreed loan term, and is rated by the credit institution as having capacity for fully repaying loan principal and/or interest within a specified period of time following the said loan term, the credit institution shall consider extending the period of debt repayment as appropriate to the customer’s source of financing for such debt repayment.
3. The debt rescheduling shall be performed prior to or within a period of 10 (ten) days from the agreed date on which debt repayment is due.
The credit institution shall perform delinquency procedures for the principal amount of which repayment is not made by the agreed due date and rescheduling is not accepted by the credit institution; notify the customer of such delinquency. That notification shall include at least the following contents: outstanding amount of overdue principal, time of delinquency of such debt and interest rate charged for that overdue principal amount.
Article 21. Loan termination, debt treatment, loan interest or fee exemption or reduction
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2. Where the customer fails to make repayment of debt due, the credit institution shall be entitled to apply methods for debt recovery under terms and conditions of a loan agreement, loan guarantee contract and regulations of relevant laws. If the amount of money obtained after application of methods for debt recovery is not adequate to fulfill obligations to pay debt owed to the credit institution, the customer shall keep on assuming responsibility for paying off loan principal and interest in full to the credit institution.
3. Where the customer or guarantor is affected by the court’s decision to open the bankruptcy proceedings or declaration of bankruptcy, the credit institution's recovery of debt owed by the customer and guarantor shall be carried out under regulations of the law on bankruptcy.
4. The credit institution shall have the right to decide to offer the customer loan interest or fee exemption or reduction in accordance with internal rules of the credit institution.
1.[9] Subject to the provisions of the Law on Credit Institutions, this Circular and other relevant laws, the credit institution shall issue its internal rules on lending, including regulations on digital lending (if any), and management of loans granted as appropriate to its operational characteristics (hereinafter referred to as “internal rules on lending).
2. Internal rules on lending of the credit institution shall be implemented in a consistent manner within the entire network of the credit institution and address the following minimum contents:
a) [10] Loan eligibility requirements, including criteria for determining demands for borrowed funds for legitimate purposes, feasible plans to use borrowed funds and customers that have sound financial capability to repay debts; rejected loan demands; lending methods; lending interest rates and methods for calculating loan interest rate; criteria for rating customers transparent and healthy in their financial status and eligible to get loans with the lending interest rate specified in Clause 2 Article 13 of this Circular; customer’s lending application dossiers and other documents and data sent to the credit institution which must be appropriate to loan features, types of loans and target customers; debt collection; conditions, business processes and procedures for debt rescheduling; debt delinquency; eligibility requirements for unsecured loans, and delegation of authority to decide grant of unsecured loans.
b) [11] Procedures for assessing, approving a loan application and deciding to grant a loan, including:
(i) The maximum duration for assessing a loan application and decide to grant a loan; delegation or assignment of rights and responsibilities to each individual or department in loan application assessment, approval and issuance of lending decisions, including those for digital lending operations prescribed in Article 32dd of this Circular (if any); other workloads as part of loan application assessment, approval and lending decision-making procedures;
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(iii) In case of a loan used for making cash payment as security for performing an obligation, measures for freezing amounts of borrowed funds disbursed by the lending credit institution in accordance with regulations of law, and under specific agreements of the parties included in the loan agreement until fulfillment of the secured obligation;
c) [12] Procedures for inspection and supervision of loan application, use of borrowed funds and debt repayment by customers, including:
(i) Delegation or assignment of rights and responsibilities to each individual or department for inspection and supervision of loan application, use of borrowed funds and debt repayment by customers;
(ii) In case of loans used for making capital contributions under capital contribution contracts, investment cooperation contracts or business cooperation contracts for executing investment projects, measures for inspecting, supervising and evaluating the customer’s financial status and sources of funding for debt repayment, ensuring the possibility of receiving loan principal and interest amounts in full by the agreed due date, and controlling the customer’s use of borrowed funds for right purposes;
(iii) In case of a loan used for making cash payment as security for performing an obligation, measures for ensuring the recovery of the loan principal amount in case the parties fail to fulfill the secured obligation as agreed;
d) Requirements concerning security for loans, assessment of assets pledged as collateral for loans; management, supervision and monitoring of collateral appropriate to loan security, collateral features and customers;
dd) Loan termination, debt treatment; loan interest rate and fee exemption and reduction;
e) [13] Identification of risks that may arise; regulations on risk management, assessment and control; measures for treatment of risks arising during the lending process (including digital lending process);
g) [14] Control of extension of loans serving the purpose of repaying loan debts owed to the credit institution, repaying foreign loan debts in order to prevent and stop any deviation in reporting on the credit quality. Control of extension of rollover loans and revolving loans in order to manage the customer’s cash flow to assure possibility of recovering loan principal and interest amounts in full by the agreed due date and reliable reporting on the credit quality. Control of extension of loans used for investing in securities; trading real estate; executing investment projects in the form of public-private partnerships; serving demands for large amounts of borrowed funds for living purposes as assessed by the credit institution; loans granted adopting digital lending method.
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1. The loan agreement must be made in writing, including the following minimum requirements:
a) Name, address and corporate identity code of the lending credit institution; name, address, number of identification card or citizen identification card or passport of the customer;
b) Loan amount; loan limit for a line of credit loan; provisional credit limit for a provisional line of credit loan; overdraft limit for a current account overdraft facility;
c) Loan purposes;
d) Currency unit used for extending a loan or repaying debt;
dd) Lending method;
e) Loan term; duration to maintain the loan limit for a line of credit loan, effective period of provisional credit limit for a provisional line of credit loan; duration to maintain the overdraft limit for a current account overdraft facility;
g) Agreed lending interest rate and interest rate converted into percent (%)/year which is calculated on the basis of the actual amount outstanding and duration of maintenance thereof as prescribed by Clause 3 Article 13 hereof; principles and factors of determination of interest rate, time of determination thereof in case of application of variable interest rate; interest rate charged on the outstanding amount of overdue principal; interest rate charged on late payment interest; type and amount of loan fee applied;
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i) Loan principal and interest repayment, and priority order of recovery of loan principal and interest; early debt repayment;
k) Debt rescheduling; delinquency of the principal amount that a customer fails to repay at the agreed due date and the credit institution refuses to agree to reschedule; form and contents of notification of such delinquency referred to in Article 20 hereof;
l) Responsibilities of a customer for cooperating with the credit institution and providing documents regarding a loan in order for the credit institution to assess application for and grant a decision to offer a loan, inspect and supervise use of borrowed fund and debt repayment of the customer;
m) Cases of loan termination; collection of debt prior to the due date; delinquency of the principal amount that the customer fails to repay prior to the due date in the event of the credit institution's loan termination or collection of debt prior to the due date; form and contents of notification of thereof as prescribed by Clause 1 Article 21 hereof;
n) Loan debt treatment; penalty for loan default and compensation for any loss incurred; rights and liabilities of parties involved;
o) Entry into force of a loan agreement.
2. In addition to provisions set forth in Clause 1 of this Article, parties can agree on other terms and conditions in compliance with provisions of this Circular and relevant laws.
3. The loan agreement referred to in Clause 1 and 2 of this Article shall be established in the form of either a specific loan arrangement, or both framework and specific arrangement.
4. Where using contract templates or general terms and conditions during conclusion of a loan agreement, the credit institution shall be obliged to:
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b) [15] provide adequate information on the standard form contract or contract containing general terms and conditions for the customer before entering into the loan agreement, and obtain the customer’s confirmation that the credit institution has already provided all necessary information.
Article 24. Inspection of loan use
1. The customer shall be responsible for using loan funds and repaying debts as agreed; reporting and providing documents evidencing use of such loan at the request of the credit institution.
2.[16] Credit institutions shall be entitled and obliged to carry out inspection and supervision of use of borrowed funds and debt repayment by their customers in accordance with regulations of law and their own internal rules referred to in Point c Clause 2 Article 22 of this Circular.
Article 25. Penalty and compensation in case of defaulting on a loan
1. The credit institution and its customer shall be allowed to agree on penalty and compensation in accordance with laws in the event that either the credit institution or the customer defaults on a loan agreement, unless otherwise stipulated by Clause 4 Article 13 hereof.
2. The credit institution and its customer can agree on whether the defaulting party is only subject to a penalty for violation without being held liable for a compensation for loss incurred or both of these actions. Where the credit institution and its customer have mutually agreed on a penalty for violation instead of both of these actions, the defaulting party shall only be subject to the penalty for violation.
In the course of extending a loan, the credit institution shall assume the following responsibilities:
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2.[17] Use payment facilities for disbursement of borrowed funds in accordance with SBV’s regulations on methods for disbursement of funds lent by credit institutions to their customers.
3. Categorize and set aside an amount of money as a provision and use such provision for managing risks associated with lending operations of the credit institution.
4. Carry out recording of accounting entries of and prepare statistical reports on lending transactions in accordance with applicable laws on bookkeeping and statistical reporting regime of credit institutions.
5.[18] In case a loan is given for making cash payment as security for performing an obligation, the credit institution shall freeze amounts of borrowed funds disbursed by the lending credit institution in accordance with regulations of law, and under specific agreements of the parties included in the loan agreement until the secured obligation has been fulfilled.
The credit institution shall agree with its customer on application of the following lending methods:
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2. Syndicated loan: At least two credit institutions are together offering a loan to a customer for the purpose of implementing one fund borrowing plan or project.
3. Loan for crop season interval: The credit institution extends a loan to a customer in order to cultivate or raise seasonal plants or livestock used in the next production cycle within a given year, or plants of which roots are retained and industrial crops which are annually harvested. Accordingly, the credit institution and its customer shall agree that the outstanding amount of debt existing in the previous production cycle can be used for the following production cycle, but shall not be allowed to exceed the time length of 02 consecutive production cycles.
5.[21] Temporary line of credit loan: The credit institution undertakes to grant loans to its customer up to the agreed temporary credit limit (in addition to the agreed credit limit). The credit institution and its customer shall agree on the validity period of temporary credit limit which is not allowed to exceed 01 (one) year.
6. Current account overdraft facility: The credit institution approves an overdraft limit within which the customer is allowed to spend more money than the amount available in the current account in order to render payment services on that current account. The overdraft limit is maintained within the maximum period of 01 (one) year.
7. Revolving loan: The credit institution and its customer agree to extend a loan to meet the demand for fund used in the business cycle which is less than 01 (one) month and the customer is allowed to use the outstanding amount of principal incurred in the previous business cycle for the following one provided that the loan term remains fewer than 03 (three) months.
8. Rollover loan: The credit institution and its customer agree on a short-term loan under the following conditions:
a) On the payment due date, the customer is entitled to repay debt or extend the period of repayment of part or whole of the outstanding amount of loan principal for another specified time period;
b) Total loan term is not allowed to exceed 12 months from the initial disbursement date and one business cycle;
c) On the date when a loan application is considered, the customer does not incur any bad debt owed to credit institutions;
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9. Other lending methods not mentioned above shall be combined with those referred to in Clause 1, 2, 3, 4, 5, 6, 7 and 8 of this Article as appropriate to business conditions of the credit institution and loan features.
1. The credit institution and its customer shall refer to the business cycle, duration of fund recovery and solvency of the customer, source of loan fund and the remaining duration of operation of the credit institution in order to agree on the loan term.
2. The term of a loan offered to a customer that is a legal person established and operated within the territory of Vietnam, or a legal person established abroad and legally operated within the territory of Vietnam shall not exceed the remaining duration of legal operation of that customer, and to a customer that is a foreign citizen residing within the territory of Vietnam, shall not exceed the residual duration of legal residence in Vietnam.
Article 29. Storage of loan documentation
1. The credit institution shall create loan documentation including:
a) Loan application dossiers;
b) Loan agreement;
c) Report on actual financial status sent by the customer to the credit institution within the loan period, including: financial statements submitted to competent authorities and/or audited financial statements in case the customer is required to prepare financial statements as prescribed by laws; reports on the customer’s financial status prepared according to the credit institution’s instructions [22].
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dd) Decision to offer a loan signed by the authorized person; if the decision is collectively made, the minutes recording that decision must be included;
e) Materials arising during the period of use of the loan which relate to the loan agreement under the credit institution’s instructions.
2. The credit institution must store its loan documentation; the duration to store such loan documentation shall be subject to laws and regulations.
The credit institution shall agree with its customer on application of the following lending methods:
1. The lending methods shall be subject to regulations set forth in Clause 1, 4 and 6 Article 27 hereof.
2. Those other than the aforesaid lending methods shall be combined with the ones referred to in Clause 1 of this Article as appropriate to business conditions of the credit institution and loan features.
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2. The term of a loan offered to a customer that is a foreign citizen residing within the territory of Vietnam shall not exceed the residual duration of legal residence in Vietnam.
Article 32. Storage of loan documentation
1. The credit institution shall create loan documentation including:
a) Loan application dossiers;
b) Loan agreement;
c) Report on income generated by the customer during the loan term under the credit institution’s instructions;
d) Documents relating to loan guarantee;
dd) Decision to offer a loan signed by the authorized person; if the decision is collectively made, the minutes recording that decision must be included;
e) Materials arising during the period of use of the loan which relate to the loan agreement under the credit institution’s instructions.
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Article 32a. Digital lending rules
1. Credit institutions shall adopt the digital lending method in a manner that is appropriate to their business conditions and loan features, and ensures security, safety and protection of data messages as well as confidentiality of information in accordance with regulations of laws on anti-money laundering and electronic transactions, SBV’s risk management guidelines and other relevant law provisions.
2. The information system used for carrying out digital lending activities must satisfy level-3 or higher-level information system security requirements laid down in the Government’s regulations on security of information systems by classification and SBV’s regulations on security of information systems in banking operations.
3. Credit institutions shall store and manage information and data in accordance with regulations of law; information and data must be stored safely, kept confidential, duly backed up and have their adequacy and integrity ensured to facilitate access or use, where necessary, or to serve the inspection, verification and resolution of trace requests, complaints or disputes, or to be provided at the request of competent authorities.
4. Each credit institution shall itself decide to adopt measures, forms and technologies for carry outing digital lending activities, accept all risks that may arise from digital lending, and must meet the following minimum requirements:
a) It has adopted solutions and technologies for ensuring the accuracy, confidentiality and safety during the collection, use and verification of information and data;
b) It has adopted measures for examining, checking, updating and verifying information and data; measures for preventing acts of forging, intervening and falsifying information and data;
c) It has developed measures for monitoring, identifying, measuring and controlling risks; risk treatment methods;
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5. Credit institutions shall consider deciding to carry out digital lending activities as prescribed in Section 3 of this Circular. Relevant provisions of this Circular shall apply to other digital lending-related contents which are not mentioned in Section 3 of this Circular.
Article 32b. Identifying customers, verifying customer identification information
1. Each credit institution must adopt solutions and technologies for identifying its customers and verifying customer identification data during its provision of digital lending services; shall assume responsibility for all risks that may arise, and meet the following minimum requirements:
a) A customer’s identification information and biometric data (including biological factor/characteristics that are specifically used to identify a person, cannot be forged, and are rarely matched with those of another person such as fingerprints, face, iris, voice and other biometric factors) must match corresponding information and biometric data included in documents/data necessary to identify that customer in accordance with regulations of the law on anti-money laundering and as requested by the credit institution, or that customer’s personal identity data certified by competent authorities, or included in citizen identity card database/national population database, or provided by electronic certification service providers in accordance with regulations of the law on electronic certification and identification, or provided by other credit institutions;
b) It has developed procedures for managing, controlling and assessing risks, including measures for preventing acts of forging, intervening, altering or falsifying customer identification information during the lending process; measures for checking and verifying customer identification information to ensure that the customer is the one conducting electronic transaction; technical measures for certifying the identified customer’s consent to the loan agreement. Risk management and control procedures must be regularly reviewed and revised according to updated information and data;
c) It must store and manage customer identification information and biometric data of its customers; sounds, images, videos and recordings; telephone numbers used for conducting transactions; and transaction logs used during lending process in an adequate and detailed manner.
2. Provisions on customer identification and verification of customer identification information in Clause 1 of this Article shall apply to individual customers who apply for loans for living purposes and start a relationship with the credit institution. If an individual customer that applies for a loan for living purposes has established a relationship with the credit institution and completed procedures for customer identification and verification of customer identification information, the credit institution shall be entitled to decide measures, forms and/or technologies employed for verifying that customer’s identification information during the digital lending process which should match the known information about that customer.
Article 32c. Outstanding loan balance
The outstanding amount of loans for living purposes given by a credit institution to an individual customer who has been identified or has his/her identification information duly verified as prescribed in Article 32b of this Circular shall not exceed VND 100.000.000 (one hundred million).
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When there is a demand for a loan, a customer must send a credit institution documents/data evidencing its eligibility for such loan as prescribed in Article 7 of this Circular, and others as referred to in the credit institution’s instructions.
Article 32dd. Assessment of loan applications and issuance of lending decisions
The credit institution shall organize assessment and approval of digital loan applications according to the principle of assignment of responsibilities to each individual or department for establishment and operation of the information system used for loan application assessment and lending decision-making stages. The credit institution must adopt mechanisms for determining the individual or department responsible for a risk whenever it arises, and promptly take actions against such a risk so as to ensure its efficient and safe assessment and approval of digital loan applications.
A loan agreement shall be made in writing. If a loan agreement is made in the form of an electronic contract, it shall comply with regulations of law on electronic transactions. A loan agreement must meet minimum information requirements laid down in Article 23 of this Circular.
Article 32g. Retention of loan documentations
1. The credit institution shall create loan dossiers in the form of data messages in conformity with regulations of the archives law, law on electronic transactions and relevant laws. Such a loan dossier includes:
a) Loan agreement;
b) Report on the customer’s actual financial status;
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d) Customer identification information and data (if any); information and data arising during the use of the loan which relate to the loan agreement under the credit institution’s instructions.
2. The credit institution must store its loan documentation; the duration to store such loan documentation shall be subject to laws and regulations.
Article 32h. Payment facilities used for disbursement of borrowed funds
Credit institutions shall use payment facilities for disbursement of borrowed funds in accordance with SBV’s regulations on methods for disbursement of funds lent by credit institutions to their customers. If an individual customer applies for a loan for living purposes and has been identified or has his/her identification information duly verified as prescribed in Article 32b of this Circular, the credit institution shall be allowed to decide the disbursement of borrowed funds to that customer’s checking account opened at a licensed payment service provider so that he/she can make payments to relevant beneficiaries according to his/her stated loan purposes.
1. This Circular comes into force from March 15, 2017.
2. As from the entry into force of this Circular, the documents listed hereunder shall be repealed:
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b) The Decision No. 28/2002/QD-NHNN dated January 11, 2002 of the Governor of the State Bank of Vietnam on revision of Article 2 of the Decision No. 1627/2001/QD-NHNN dated December 31, 2001 of the Governor of the State Bank of Vietnam on introduction of the regulations on credit institutions’ lending transactions with customers;
c) The Decision No. 127/2005/QD-NHNN dated February 03, 2005 of the Governor of the State Bank of Vietnam on revision of several articles of the regulations on credit institutions’ lending transactions with customers issued together with the Decision No. 1627/2001/QD-NHNN dated December 31, 2001 of the Governor of the State Bank of Vietnam;
d) The Decision No. 783/2005/QD-NHNN dated May 31, 2005 of the Governor of the State Bank of Vietnam on revision of Clause 6 Article 1 of the Decision No. 127/2005/QD-NHNN dated February 3, 2005 of the Governor of the State Bank of Vietnam on revision of several articles of the regulations on credit institutions’ lending transactions with customers issued together with the Decision No. 1627/2001/QD-NHNN dated December 31, 2001 of the Governor of the State Bank of Vietnam;
dd) The Circular No. 12/2010/TT-NHNN dated April 14, 2010 of the Governor of the State Bank of Vietnam guiding credit institutions to extension of Vietnamese dong loans to customers at the agreed interest rate;
e) The Circular No. 05/2011/TT-NHNN dated March 10, 2011 of the Governor of the State Bank of Vietnam prescribing collection of loan fees paid by customers to credit institutions and/or foreign bank branches;
g) The Circular No. 33/2011/TT-NHNN dated October 08, 2011 promulgated by the State Bank’s Governor on amending and supplementing the Circular No. 13/2010/TT-NHNN dated May 20, 2010 on providing statutory provisions on prudential ratios for business transactions of credit institutions and regulations for granting loans to customers, issued together with the Decision No. 1627/2001/QD-NHNN dated December 31, 2001 promulgated by the State Bank’s Governor;
h) The Circular No. 08/2014/TT-NHNN dated March 17, 2014 of the State Bank of Vietnam prescribing short-term loans denominated in Vietnamese dong which are offered by credit institutions to customers to meet the demand of fund used in certain economic sectors or activities.
If a credit contract is signed before the entry into force of this Circular,
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2. With respect to application of the method of extending a line of credit loan, provisional line of credit loan or current account overdraft facility, unless the duration of maintenance of a credit or overdraft limit on the current account or the effective period of provisional line of credit is agreed upon in terms and conditions of the credit contract, the credit institution and its customer shall be allowed to continue implementation of terms and conditions of the credit contract signed in accordance with laws and regulations which enter into force on the date of signing of that credit contract under which the duration of maintenance of credit limit, overdraft limit on the current account or the effective period of a provisional line of credit shall not exceed 01 (one) year from the entry into force of this Circular.
Article 35. Implementation organization
1. Setting the internal rules for lending transactions with customers by credit institutions shall be subject to this Circular.
2. Chief of the Ministry’s Office, the Director of the Monetary Policy Department, Heads of units affiliated to the State Bank of Vietnam, Directors of branches of the State Bank of Vietnam in provinces and central-affiliated cities, Chairpersons of the Boards of Directors, Chairpersons of the Boards of Members and General Directors (Directors) of credit institutions shall implement this Circular./.
CERTIFIED BY
PP. GOVERNOR
DEPUTY GOVERNOR
Doan Thai Son
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“The Law on the State Bank of Vietnam dated June 16, 2010;
The Law on Credit Institutions dated June 16, 2010 and the Law on amendments to the Law on Credit Institutions dated November 20, 2017;
The Government's Decree No. 102/2022/ND-CP dated December 12, 2022 prescribing functions, tasks, powers and organizational structure of the State Bank of Vietnam;
And at the request of the Director of the Monetary Policy Department;”
[2] This Point is amended according to Point a Clause 1 Article 1 of the Circular No. 06/2023/TT-NHNN providing amendments to the Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam prescribing lending transactions of credit institutions and foreign bank branches with customers, coming into force from September 01, 2023.
[3] This Clause is amended according to Point b Clause 1 Article 1 of the Circular No. 06/2023/TT-NHNN providing amendments to the Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam prescribing lending transactions of credit institutions and foreign bank branches with customers, coming into force from September 01, 2023.
[4] This Clause is abrogated according to Article 2 of the Circular No. 06/2023/TT-NHNN providing amendments to the Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam prescribing lending transactions of credit institutions and foreign bank branches with customers, coming into force from September 01, 2023.
[5] This Point is amended according to Clause 2 Article 1 of the Circular No. 06/2023/TT-NHNN providing amendments to the Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam prescribing lending transactions of credit institutions and foreign bank branches with customers, coming into force from September 01, 2023.
[6] This Clause is amended according to Clause 3 Article 1 of the Circular No. 06/2023/TT-NHNN providing amendments to the Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam prescribing lending transactions of credit institutions and foreign bank branches with customers, coming into force from September 01, 2023.
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[8] This Clause is amended according to Clause 5 Article 1 of the Circular No. 06/2023/TT-NHNN providing amendments to the Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam prescribing lending transactions of credit institutions and foreign bank branches with customers, coming into force from September 01, 2023.
[9] This Clause is amended according to Point a Clause 6 Article 1 of the Circular No. 06/2023/TT-NHNN providing amendments to the Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam prescribing lending transactions of credit institutions and foreign bank branches with customers, coming into force from September 01, 2023.
[10] This Point is amended according to Point b Clause 6 Article 1 of the Circular No. 06/2023/TT-NHNN providing amendments to the Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam prescribing lending transactions of credit institutions and foreign bank branches with customers, coming into force from September 01, 2023.
[11] This Point is amended according to Point c Clause 6 Article 1 of the Circular No. 06/2023/TT-NHNN providing amendments to the Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam prescribing lending transactions of credit institutions and foreign bank branches with customers, coming into force from September 01, 2023.
[12] This Point is amended according to Point d Clause 6 Article 1 of the Circular No. 06/2023/TT-NHNN providing amendments to the Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam prescribing lending transactions of credit institutions and foreign bank branches with customers, coming into force from September 01, 2023.
[13] This Point is amended according to Point dd Clause 6 Article 1 of the Circular No. 06/2023/TT-NHNN providing amendments to the Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam prescribing lending transactions of credit institutions and foreign bank branches with customers, coming into force from September 01, 2023.
[14] This Point is amended according to Point e Clause 6 Article 1 of the Circular No. 06/2023/TT-NHNN providing amendments to the Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam prescribing lending transactions of credit institutions and foreign bank branches with customers, coming into force from September 01, 2023.
[15] This Point is amended according to Clause 7 Article 1 of the Circular No. 06/2023/TT-NHNN providing amendments to the Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam prescribing lending transactions of credit institutions and foreign bank branches with customers, coming into force from September 01, 2023.
[16] This Clause is amended according to Clause 8 Article 1 of the Circular No. 06/2023/TT-NHNN providing amendments to the Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam prescribing lending transactions of credit institutions and foreign bank branches with customers, coming into force from September 01, 2023.
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[18] This Clause is amended according to Point b Clause 9 Article 1 of the Circular No. 06/2023/TT-NHNN providing amendments to the Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam prescribing lending transactions of credit institutions and foreign bank branches with customers, coming into force from September 01, 2023.
[19] This Clause is amended according to Point a Clause 10 Article 1 of the Circular No. 06/2023/TT-NHNN providing amendments to the Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam prescribing lending transactions of credit institutions and foreign bank branches with customers, coming into force from September 01, 2023.
[20] This Clause is amended according to Point b Clause 10 Article 1 of the Circular No. 06/2023/TT-NHNN providing amendments to the Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam prescribing lending transactions of credit institutions and foreign bank branches with customers, coming into force from September 01, 2023.
[21] This Clause is amended according to Point c Clause 10 Article 1 of the Circular No. 06/2023/TT-NHNN providing amendments to the Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam prescribing lending transactions of credit institutions and foreign bank branches with customers, coming into force from September 01, 2023.
[22] The phrase “trong thời gian vay vốn:” (“within the loan period:") is replaced with the phrase “trong thời gian vay vốn: Báo cáo tài chính nộp cho cơ quan nhà nước có thẩm quyền và/hoặc báo cáo tài chính đã kiểm toán đối với trường hợp khách hàng phải lập báo cáo tài chính theo quy định của pháp luật; báo cáo tình hình tài chính của khách hàng theo hướng dẫn của tổ chức tín dụng” (“within the loan period, including: financial statements submitted to competent authorities and/or audited financial statements in case the customer is required to prepare financial statements as prescribed by laws; reports on the customer’s financial status prepared according to the credit institution’s instructions”) according to Clause 4 Article 1 of the Decision No. 312/QD-NHNN dated March 14, 2017 providing amendments to the Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam prescribing lending transactions of credit institutions and foreign bank branches with customers, coming into force from March 15, 2017.
[23] This Section, including Articles 32a, 32b, 32c, 32d, 32dd, 32e, 32g and 32h, is amended according to Clause 11 Article 1 of the Circular No. 06/2023/TT-NHNN providing amendments to the Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam prescribing lending transactions of credit institutions and foreign bank branches with customers, coming into force from September 01, 2023.
[24] Articles 3 and 4 of the Circular No. 06/2023/TT-NHNN providing amendments to the Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam prescribing lending transactions of credit institutions and foreign bank branches with customers, coming into force from September 01, 2023, stipulate as follows:
“Article 3. Responsibility for implementation
The Chief of Office, the Director of the Monetary Policy Department, heads of SBV’s affiliated units, and credit institutions are responsible for the implementation of this Circular.
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1. This Circular comes into force from September 01, 2023.
2. With regard to a loan agreement or credit contract signed before the effective date of this Circular, the credit institution and its customer shall continue complying with terms and conditions of the signed loan agreement or credit contract in accordance with regulations and laws in force at the date of signing of that loan agreement or credit contract. Any revisions to the signed loan agreement or credit contract must comply with the provisions of this Circular./.”
File gốc của Integrated document No. 18/VBHN-NHNN dated July 12, 2023 Circular on prescribing lending transactions of credit institutions and foreign bank branches with customers đang được cập nhật.
Integrated document No. 18/VBHN-NHNN dated July 12, 2023 Circular on prescribing lending transactions of credit institutions and foreign bank branches with customers
Tóm tắt
| Cơ quan ban hành | Ngân hàng Nhà nước Việt Nam |
| Số hiệu | 18/VBHN-NHNN |
| Loại văn bản | Văn bản hợp nhất |
| Người ký | Đoàn Thái Sơn |
| Ngày ban hành | 2023-07-12 |
| Ngày hiệu lực | 2023-07-12 |
| Lĩnh vực | Tiền tệ - Ngân hàng |
| Tình trạng | Còn hiệu lực |