From March 15, 2017: Each customer is allowed to borrow a maximum consumer loan of 100 million vnd

VCN - After two times taking comments for the draft, recently, the Governor of the State Bank has officially issued Circular No. 43/2016 / TT-NHNN on consumer lending of financial companies to be effective from 15 March 2017.
from march 15 2017 each customer is allowed to borrow a maximum consumer loan of 100 million vnd The interest rate in early 2017: Unusual?
from march 15 2017 each customer is allowed to borrow a maximum consumer loan of 100 million vnd More lending conditions in the new Public Debt Management Law
from march 15 2017 each customer is allowed to borrow a maximum consumer loan of 100 million vnd Restructuring of Credit Institutions: Benefits of depositors guaranteed
from march 15 2017 each customer is allowed to borrow a maximum consumer loan of 100 million vnd

Each customer is allowed to borrow from finance companies up to 100 million vnd for house repairs and health treatment. Photo: HuuLinh

Accordingly, the Circular provides the concept of consumer lending in which the financial company lends loans in Vietnam dong to individual customers in order to meet the needs of buying,using goodsand services for consumption purposes of the customer and the customer's family, with total consumer loans of a customer in that financial company not exceeding VND 100,000,000 (one hundred million vnd).

This level of total loans does not apply to consumer loans for buyinga car and using that car as aguaranteed asset for the loan as provided by law.

Funding needs are to buy and use goods and services include the purchase of vehicles, furniture, household equipments; study expenses, medical treatment, tourism, culture, sports; house repairing costs.

The Circular regulates that financial companies are allowed to openpoints to introduce the servicesatplaces of goods or servicesto introduce consumer lending products, gather information and loan demands from customers. At the same time, financial companies are not allowed to undertake other activities at those points of services.

This Circular also requires financial companies to issue internal regulations on consumer lending to guide the collection, updating and checking data, customer information management, incorrect informationidentification and fraud prevention for lending decisions, controlling and collecting loans;debt collectingand urging measures; and the rules and standards of conduct in consumer loans and measures to ensure the full compliance of these rules and standards.

Also stipulated in Circular 43/2016/TT-NHNN is that consumer loan contracts must include the contents of thenotificationform to customers about scheduled repayments and interest where there is adjustment; applying principals and remedies if customers do not pay bills on time; and early repayment charges and conditions.

Especially, financial companies must issue regulations on the highest level of lending rate and thelowest level of lending rate for each consumer loan product for common application and submit to the State Bank for supervising.

from march 15 2017 each customer is allowed to borrow a maximum consumer loan of 100 million vnd Real estate capital still dependent on banks

Financial companies must provide draft contract consumer loans to customers for consideration and decision before signing, and must get certified by the customers that they have been provided full information before signing the contract.

According to the State Bank, the promulgation of Circular 43/2016/TT-NHNN to complete the legal provisions to protect the interests of consumers, creates a legal basis for theconsumer loans operation of financial companies, ensuring consumer lending activities of financial companies with sustainable, safe, healthy and effective development.

Huong Diu / Luong Ngoc

Related News

Aiming for 16% credit growth and removing credit room allocation

Aiming for 16% credit growth and removing credit room allocation

VCN - A representative of the State Bank of Vietnam (SBV) said that the SBV is gradually innovating its credit management methods, aiming to remove the mechanism of allocating credit room to each credit institution.
Untying the knot for green finance

Untying the knot for green finance

VCN - Green finance is a crucial resource for greening businesses. Completing the policy framework for green finance is urgently needed to unlock this capital flow.
Banks increase non-interest revenue

Banks increase non-interest revenue

VCN - Slow credit demand and fierce competition have forced banks to seek ways to increase non-interest revenue, especially when there is a lot of support from the digital transformation of the entire banking system.
A “picture” of bank profits in the first nine months of 2024

A “picture” of bank profits in the first nine months of 2024

VCN - Pre-tax profits for banks during the first nine months of 2024 remained positive, exceeding 200 trillion VND, solidifying the sector's position as a market leader.

Latest News

Consulting on customs control for e-commerce imports and exports

Consulting on customs control for e-commerce imports and exports

VCN- The General Department of Vietnam Customs (GDVC) consults widely on the draft Decree regulating customs control for e-commerce imports and exports.
Flexible tax policy to propel Việt Nam’s economic growth in 2025

Flexible tax policy to propel Việt Nam’s economic growth in 2025

The Vietnamese government has extended and enhanced tax relief for 2025, offering reductions and deferrals to boost economic growth.
Brandnew e-commerce law to address policy gaps

Brandnew e-commerce law to address policy gaps

The proposed law seeks to address gaps in existing regulations and keep pace with technological advancements and evolving business models.
From January 1, 2025: 13 product codes increase export tax to 20%

From January 1, 2025: 13 product codes increase export tax to 20%

VCN - According to the Export Tariff (XK) issued with Decree 26/2023/ND-CP, from January 1, 2025, there will be 13 commodity codes with an export tax rate of 20%.

More News

Export tax rates of 13 commodity codes to increase to 20% from January 1, 2025

Export tax rates of 13 commodity codes to increase to 20% from January 1, 2025

VCN – According to the Export Tariff issued with Decree 26/2023/ND-CP, the tax rates of 13 commodity codes will increase to 20% from January 1, 2025.
Proposal to reduce 30% of land rent in 2024

Proposal to reduce 30% of land rent in 2024

VCN - The Ministry of Finance has finalized a draft Government Decree outlining the reduction of land rent for 2024. The draft is currently under review by the Ministry of Justice before being submitted to the Government for approval.
Resolve problems related to tax procedures and policies for businesses

Resolve problems related to tax procedures and policies for businesses

VCN - Immediately after the end of the Dialogue Conference between the Ministry of Finance and enterprises on tax and customs policies and administrative procedures in 2024, the General Department of Customs proactively removed obstacles related to tax procedures and policies for the business community.
New regulations on procurement, exploitation, and leasing of public assets

New regulations on procurement, exploitation, and leasing of public assets

VCN - Decree No. 114/2024/ND-CP, which amends and supplements certain articles of Decree No. 151/2017/ND-CP detailing the implementation of the Law on Management and Use of Public Assets, introduces significant changes. These include updates on authority, methods of asset exploitation in agencies and units, plans for leasing, joint ventures, and partnerships in public service units, as well as centralized procurement procedures.
Actively listening to the voice of the business community

Actively listening to the voice of the business community

VCN - Recognizing the Customs-business relationship as a long-term partnership, the Customs authority has organized hundreds of dialogues with businesses since the beginning of the year. These efforts aim to promptly address challenges, resolve obstacles, and facilitate import-export activities. Such meetings offer an opportunity for the Customs authority and the business community to exchange, share insights, and find solutions to enhance operational quality and efficiency.
Step up negotiations on customs commitments within the FTA framework

Step up negotiations on customs commitments within the FTA framework

VCN - Promoting negotiations on customs commitments within the framework of free trade agreements (FTAs) plays an important role in facilitating import and export activities. These commitments not only help optimize the customs clearance process but also minimize costs and risks for businesses, opening up great opportunities for Vietnamese goods to access deeper into the international market.
Proposal to amend regulations on goods circulation

Proposal to amend regulations on goods circulation

VCN - To perfect the policy on customs procedures, inspection and supervision, enterprises and associations have contributed many ideas from practical activities. Thereby, the Drafting Committee (General Department of Customs) has more perspectives to build policies to meet the goal of facilitating trade and ensuring state management of customs.
Review of VAT exemptions for imported machinery and equipment

Review of VAT exemptions for imported machinery and equipment

VCN - The General Department of Vietnam Customs has directed provincial and municipal customs departments to review, inspect, and address issues related to the implementation of VAT exemption policies for specialized machinery and equipment used in agricultural production.
Customs tightens oversight on e-commerce imports

Customs tightens oversight on e-commerce imports

VCN - The General Department of Vietnam Customs has issued new directives to enhance the management of imported goods transacted through e-commerce platforms, addressing ambiguities and ensuring consistent enforcement across provincial and municipal customs departments.
Read More

Your care

Latest Most read
Consulting on customs control for e-commerce imports and exports

Consulting on customs control for e-commerce imports and exports

VCN - The Decree provides regulations on inspection and specialized management for e-commerce imports and exports; electronic customs data processing system for e-commerce imports and exports.
Flexible tax policy to propel Việt Nam’s economic growth in 2025

Flexible tax policy to propel Việt Nam’s economic growth in 2025

The Vietnamese government has extended and enhanced tax relief for 2025, offering reductions and deferrals to boost economic growth.
Brandnew e-commerce law to address policy gaps

Brandnew e-commerce law to address policy gaps

The proposed law seeks to address gaps in existing regulations and keep pace with technological advancements and evolving business models.
From January 1, 2025: 13 product codes increase export tax to 20%

From January 1, 2025: 13 product codes increase export tax to 20%

VCN - According to the Export Tariff (XK) issued with Decree 26/2023/ND-CP, from January 1, 2025, there will be 13 commodity codes with an export tax rate of 20%.
Export tax rates of 13 commodity codes to increase to 20% from January 1, 2025

Export tax rates of 13 commodity codes to increase to 20% from January 1, 2025

VCN - 13 commodity codes with export tax rates increased to 20% from January 2025 include:
Mobile Version