Circular No. 10/2013/TT-NHNN stipulates the maximum interest rate for short-term loans in Vietnamese dong provided by credit institutions and foreign bank branches to borrowers for capital needs serving certain economic sectors.

 CIRCULAR

Regulations on the maximum interest rate for short-term loans in Vietnamese dong by credit institutions and foreign bank branches to borrowers to meet capital needsserving certain sectors,economic industriesThe Governor of the State Bank of Vietnam issues this Circular to regulate the maximum interest rate for short-term loans in Vietnamese dong by credit institutions and foreign bank branches to borrowers to meet capital needs serving certain sectors, economic industries,

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;

Article 1.

Article 1. The maximum interest rate for short-term loans in Vietnamese dong is 10% per annum; specifically, for Credit Cooperatives and Microfinance Organizations, the maximum interest rate for short-term loans in Vietnamese dong is 11% per annum.

Article 1. Interest rate for short-term loans in Vietnamese dong by credit institutions and foreign bank branches

Point a) To serve the development of agriculture and rural areas as stipulated in Decree No. 41/2010/NĐ-CP dated April 12, 2010 of the Government on credit policies to support the development of agriculture and rural areas;

2. Short-term loans in Vietnamese dong subject to the maximum interest rate prescribed in Clause 1 of this Article are those loans intended to meet the following capital needs:

Article 2. Borrowers from credit institutions and foreign bank branches who are eligible to apply the interest rates prescribed in Article 1 of this Circular are those borrowers meeting the conditions for borrowing as prescribed by the State Bank of Vietnam regarding the lending activities of credit institutions and foreign bank branches to borrowers, and are assessed by credit institutions and foreign bank branches as having transparent and sound financial situations.

b) To implement production and business plans and projects for export goods as provided for in the Law on Trade;

c) To serve the production and business activities of small and medium-sized enterprises as provided for in Decree No. 56/2009/NĐ-CP dated June 30, 2009 of the Government on assistance for the development of small and medium-sized enterprises;

d) To develop supporting industries as provided for in Decision No. 12/2011/QĐ-TTg dated February 24, 2011 of the Prime Minister on policies to develop certain supporting industries;

đ) To serve the production and business activities of high-tech enterprises as provided for in the Law on High Technology and other relevant laws.

Article 2. Responsibilities of Borrowers

Point 2. Borrowers have the responsibility to provide information and documents proving that their loan purposes fall within the industries and sectors subject to the interest rates prescribed in this Circular and bear legal responsibility for the truthfulness and accuracy of the provided information and documents.

Point 2. Credit institutions and foreign bank branches shall implement lending to borrowers as prescribed in this Circular in accordance with the laws governing lending activities, safety ratios in business operations of credit institutions and foreign bank branches, and other relevant laws; they may not charge fees related to the loan to the borrower except for certain fees as prescribed in Circular No. 05/2011/TT-NHNN dated March 10, 2011 of the Governor of the State Bank of Vietnam on charging fees for lending by credit institutions to borrowers.

Article 3. Responsibilities of Credit Institutions and Foreign Bank Branches

1. Credit institutions and foreign bank branches shall publicly display the interest rates for loans and the criteria for determining eligible borrowers as stipulated in Clause 2 of Article 1 and Clause 1 of Article 2 of this Circular.

Point 1. This Circular takes effect from May 13, 2013 and replaces Circular No. 09/2013/TT-NHNN dated March 25, 2013 of the Governor of the State Bank of Vietnam on the maximum interest rate for short-term loans in Vietnamese dong by credit institutions and foreign bank branches to borrowers to meet capital needs serving certain sectors, economic industries.

Article 4. Organization of Implementation

Point 2. Interest rates applicable to credit contracts signed before the effective date of this Circular shall continue to be implemented in accordance with the signed credit contracts in compliance with the laws at the time of signing the contracts.

Point 3. For loans outside the provisions of this Circular, credit institutions and foreign bank branches shall implement in accordance with Circular No. 12/2010/TT-NHNN dated April 14, 2010 of the Governor of the State Bank of Vietnam guiding credit institutions to lend in Vietnamese dong to borrowers at agreed interest rates.

Point 4. The Heads of the Office, Department Heads of the Monetary Policy Department, and Heads of units under the State Bank of Vietnam, Governors of the State Bank of Vietnam branches in provinces and centrally-administered cities; Chairmen of the Board of Directors, Chairmen of the Board of Members, and General Directors (Directors) of credit institutions and foreign bank branches, other organizations, and individuals related to this matter are responsible for implementing this Circular./.

4. The Director of the Office, the Head of the Monetary Policy Department, and the Heads of units under the State Bank of Vietnam, the Governors of the State Bank of Vietnam branches in provinces and centrally governed cities; the Chairmen of the Management Boards, the Chairmen of the Member Councils, and the General Directors (Directors) of credit organizations, foreign bank branches, other organizations, and related individuals are responsible for implementing this Circular./.