Question:
I want to borrow money from the bank, can I negotiate the interest rate?
Answer:
Based on Article 13 of Circular 39/2016/TT-NHNN, amended and supplemented by Clause 4 of Article 1 of Circular 06/2023/TT-NHNN, it stipulates:
“Lending Interest Rates
- Credit institutions and customers shall agree on lending interest rates based on market capital supply and demand, borrowing needs, and the customer's creditworthiness, except in cases where the State Bank of Vietnam has regulations on maximum lending interest rates as specified in Clause 2 of this Article.
- In cases where the customer is evaluated by the credit institution as having a transparent and healthy financial status, the credit institution and the customer shall agree on short-term lending interest rates in Vietnamese Dong but not exceeding the maximum lending interest rate decided by the Governor of the State Bank of Vietnam in each period to meet certain capital needs:
- a) Serving the development of agriculture and rural areas according to the Government's regulations on credit policies for agricultural and rural development;
- b) Implementing export business plans according to the provisions of the Commercial Law and guiding documents of the Commercial Law;
- c) Serving the business of small and medium-sized enterprises according to the provisions of the Law on Support for Small and Medium-Sized Enterprises and the Government's regulations on supporting small and medium-sized enterprises;
- d) Developing supporting industries according to the Government's regulations on supporting industry development;
đ) Serving the business of enterprises applying high technology in the List of high technologies prioritized for investment and development approved by the Prime Minister, and high-tech enterprises according to the provisions of the High Technology Law and guiding documents of the High Technology Law."
According to the regulations, credit institutions and customers can agree on lending interest rates based on market capital supply and demand, borrowing needs, as well as the customer's creditworthiness, except in cases where the State Bank of Vietnam applies regulations on maximum interest rates as per Clause 2 of Article 13 of Circular 39/2016/TT-NHNN (amended in Clause 4 of Article 1 of Circular 06/2023/TT-NHNN) as mentioned above.
Therefore, you can fully negotiate the borrowing interest rate with the bank based on market capital supply and demand, borrowing needs, and your personal creditworthiness.
Consultation: Banking and Finance Law Services
