On June 28, 2024, the State Bank of Vietnam issued Circular No. 12/2024/TT-NHNN amending and supplementing a number of articles of Circular No. 39/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam regulates lending activities of credit institutions and foreign bank branches to customers.
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Amend and supplement regulations on checking loan use as follows:
- Customers have the obligation to use the loan for the committed purpose, repay principal, interest, and fees in full and on time as agreed; Report the use of loan capital and provide information, documents, and data proving that the loan capital is used for the correct purpose;
- For loans with small value, credit institutions shall have measures to check and monitor the use of loan capital for the right purpose as committed and repayment of customers, ensuring the ability to recover principal. and interest on the loan in full on time as agreed;...
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In case of lending to secure the performance of the borrower's obligations to a third party, the lending credit institution shall agree with the customer to block the loan amount at the secured lending credit institution. in accordance with the provisions of law until the termination of the warranty obligation.
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Credit institutions must require customers to provide documents and data proving a feasible capital use plan, the customer's financial capacity, and the legal purpose of capital use before deciding to lend. Except for loans of small value.
This Circular takes effect from July 1, 2024.
