Circular No. 05/2011/TT-NHNN on the collection of loan fees by credit institutions from customers

CIRCULAR

Regulations on Loan Origination Fees Charged by Credit Institutions to Customers

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Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

Pursuant to the Law on Credit Organizations No. 47/2010/QH12 dated June 16, 2010;

Pursuant to Decree No. 96/2008/NĐ-CP dated August 26, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Pursuant to Resolution No. 11/NQ-CP dated February 24, 2011 of the Government on key measures to focus on controlling inflation, stabilizing the macro-economy, and ensuring social welfare;

The State Bank of Vietnam hereby stipulates loan origination fees charged by credit institutions and foreign bank branches (hereinafter referred to as credit institutions) to customers as follows:

Article 1. Credit institutions shall not charge any types of fees related to loans granted to customers, except for the following fees:

1. Fees payable in cases where customers repay loans ahead of schedule and fees for standby credit limits as prescribed by the State Bank of Vietnam regarding credit institution activities with customers.

2. Fees for arranging the execution of syndicated loan financing contracts between participating credit institutions and customers as prescribed by the State Bank of Vietnam concerning syndicated loan financing by credit institutions.

3. Types of fees are specifically regulated in relevant legal documents pertaining to lending.

Article 2. Banking Inspection and Supervision Authorities and State Bank of Vietnam Branches in provinces and centrally governed cities shall conduct inspections, audits, and supervision of loan-related fee collection by credit institutions from customers; apply measures within their authority to handle credit institutions violating the provisions of this Circular.

Article 3. Implementation

1. This Circular takes effect from the date of signature.

Deputy Director of the Office, Heads of the Monetary Policy Department and other units under the State Bank of Vietnam, Governors of State Bank of Vietnam Branches in provinces and centrally governed cities, Chairmen of Management Boards and General Directors (Directors) of credit institutions, and borrowers at credit institutions are responsible for implementing this Circular./.