Decision No. 108/2000/QĐ-NHNN1 stipulates the maximum level of unsecured loans for People's Credit Funds, applicable to central, regional, and grassroots funds. The maximum loan balance is determined based on the total loan balance of each organization.
Scope of application
People's Credit Funds at all levels (central, regional, grassroots)
Key points
- The Chairman of the Board of Management of the Central People's Credit Fund decides the maximum loan balance for unsecured loans for customers and is responsible for his decision (Article 1.1).
- Regional People's Credit Funds decide the maximum loan balance for unsecured loans for members which are grassroots People's Credit Funds, and apply measures to secure loans for other entities (Article 1.2).
- The maximum loan balance for unsecured loans for rural households under the application of Decision No. 67/1999/QĐ-TTg is 40% of the total loan balance of a grassroots People's Credit Fund (Article 1.3.a).
- The maximum loan balance for unsecured loans is calculated based on the total loan balance of credit organizations, excluding loan balances designated by the Government and those subject to Decision No. 67/1999/QĐ-TTg (Article 2).
- People's Credit Funds must comply with the provisions on unsecured loans in Articles 19, 20, and 21 of Decree No. 178/1999/NĐ-CP (Article 3).
🌐 Social impact of this document
- Strengthen management of credit risks for People's Credit Funds.
- Support rural households to access loans more easily.
- Require the application of collateral measures for loans for entities other than rural households.
❓ Frequently asked questions
What is the maximum amount that the Central People's Credit Fund can lend without collateral?
The Chairman of the Board of Management of the Central People's Credit Fund decides the maximum loan balance for unsecured loans for customers.
What is the maximum loan balance for unsecured loans for rural households?
Up to 40% of the total loan balance of a grassroots People's Credit Fund.
Can entities other than rural households obtain unsecured loans?
Must apply collateral measures for loans according to Decree No. 178/1999/NĐ-CP.
When does this Decision take effect?
Fifteen days from the date of signing.
Credit organizations must comply with the provisions on unsecured loans in which Articles of Decree No. 178/1999/NĐ-CP?
Articles 19, 20, and 21.
Full text
DECISION OF THE GOVERNOR OF THE STATE BANK OF VIETNAM
On specifying the level of unsecured loans for People's Credit Funds at all levels
GOVERNOR OF THE STATE BANK OF VIETNAM
Pursuant to the Law on the State Bank of Vietnam and the Law on Credit Organizations dated December 12, 1997;
Pursuant to Decree No. 15/CP dated February 3, 1993 of the Government on the tasks, powers, and responsibilities for state management of ministries and ministerial-level agencies;
Pursuant to Clause 2, Article 21 of Decree No. 178/1999/NĐ-CP of the Government dated December 29, 1999 on collateral for loans of credit organizations;
Pursuant to the proposal of the Director of the Monetary Policy Department,
DECISION:
Article 1. The matter of specifying the level of unsecured loan balances for People's Credit Funds at all levels.
1. The Chairman of the Board of Directors of the Central People's Credit Fund decides the level of unsecured loan balances for borrowers and bears responsibility for such decisions.
2. For Regional People's Credit Funds:
a) The Chairman of the Board of Directors of the Regional People's Credit Fund decides the level of unsecured loan balances for members that are Basic People's Credit Funds and bears responsibility for such decisions.
b) Loans to members that are other entities must apply collateral measures for loans by assets as prescribed in Decree No. 178/1999/NĐ-CP of the Government dated December 29, 1999 on collateral for loans of credit organizations and Circulars issued by the State Bank guiding the implementation of this Decree.
3. For Basic People's Credit Funds:
a) The level of unsecured loan balances for members that are rural households falling within the scope of application of Decision No. 67/1999/QĐ-TTg dated March 30, 1999 of the Prime Minister on certain credit policies of commercial banks serving agricultural and rural development shall not exceed 40% of the total loan balance of a Basic People's Credit Fund.
b) Loans to members that are other entities must apply collateral measures for loans by assets as prescribed in Decree No. 178/1999/NĐ-CP of the Government dated December 29, 1999 on collateral for loans of credit organizations and Circulars issued by the Governor of the State Bank guiding the implementation of this Decree.
Article 2. Determining the level of unsecured loan balances
1. The level of unsecured loan balances of the Central People's Credit Fund and Regional People's Credit Funds specified in Article 1 of this Decision shall be calculated based on the total loan balance of the credit organization, excluding loan balances under government directives and unsecured loan balances for entities subject to Decision No. 67/1999/QĐ-TTg dated March 30, 1999 of the Prime Minister on certain credit policies of commercial banks serving agricultural and rural development.
2. The level of secured loan balances of Basic People's Credit Funds specified in point a, Clause 3, Article 1 of this Decision shall be calculated based on the total loan balance of the Basic People's Credit Fund.
3. The level of unsecured loan balances of credit organizations specified in Article 1 of this Decision shall only apply to credit contracts established from the date this Decision takes effect.
Article 3. Responsibilities of People's Credit Funds when granting unsecured loans
The Central People's Credit Fund, Regional People's Credit Funds, and Basic People's Credit Funds decide on granting unsecured loans to customers based on ensuring the safety of credit operations, complying with regulations on unsecured loans in Articles 19, 20, and 21 of Decree No. 178/1999/NĐ-CP of the Government dated December 29, 1999 on collateral for loans of credit organizations, Circulars issued by the Governor of the State Bank guiding the implementation of this Decree, and related regulations of the Government.
Article 4. Implementation Provisions
1. This Decision shall take effect fifteen days from the date of signature.
2. The Director of the Inspectorate of the State Bank shall be responsible for inspecting the implementation of this Decision; shall take the lead and coordinate with the Head of the Department of Cooperative Credit Organizations to assess the quality of credit operations of the Central People's Credit Fund, Regional People's Credit Funds, and Basic People's Credit Funds, and submit to the Governor of the State Bank for determining the level of unsecured loans for each period for these credit organizations.
3. Heads of units under the State Bank, Governors of State Bank Branches in provinces and centrally-administered cities, Chairmen of the Board of Directors, General Managers (Directors) of the Central People's Credit Fund, Regional People's Credit Funds, and Basic People's Credit Funds shall be responsible for implementing this Decision./.
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