Circular No. 12/2024/TT-NHNN Amending and Supplementing Certain Articles of Circular No. 39/2016/TT-NHNN dated December 30, 2016, issued by the Governor of the State Bank of Vietnam on the lending activities of credit institutions and foreign bank branches.

CIRCULAR

1. Amend and supplement Point d of Clause 2 of Article 24 as follows: some clauses of 19/2018/TT-BGTVT) which has been amended and supplemented by Clause 7, Article 1 of Circular No. 08/2024/TT-BGTVT dated April 4, 2024, issued by the Minister of Transport, amending and supplementing certain articles of Circular No. 19/2018/TT-BGTVT 39/2016/TT-NHNNdated December 30, 2016 issued by the Governor of the State Bank of Vietnam regarding the lending activities of credit institutions and foreign bank branches to customers

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated January 18, 2024;

Pursuant to Decree No. 102/2022/NĐ-CP dated December 12, 2022 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Article 1.

The Governor of the State Bank of Vietnam promulgates this Circular stipulating and guiding the implementation of content number 09 under component number 02 and content number 02 under component number 08 of the National Target Program on New Rural Development for the period 2021-2025. detailed information in the system, 1. NATIONAL UNIVERSITIES ARE PUBLIC HIGHER EDUCATION INSTITUTIONS MANAGED BY THE MINISTRY OF EDUCATION AND TRAINING, HAVE LEGAL PERSONALITY, SEPARATE ACCOUNTS, AND USE STAMPS WITH THE NATIONAL EMBLEM. of Circular No. 39/2016/TT-NHNN dated December 30, 2016 issued by the Governor of the State Bank of Vietnam regarding the lending activities of credit institutions and foreign bank branches to customers.

Article 1. Amending and supplementing some articles of Circular No. 39/2016/TT-NHNN

1. Amending and supplementing Clause 1 and adding Clause 13, Clause 14 of Article 2 as follows:

a) Amend and supplement Clause 1 as follows:

"1. Lending is a form of credit provision through which a credit institution provides or commits to provide a customer with a certain amount of money for a specific purpose within a defined period, based on the principle of full repayment of principal and interest according to the agreement with the credit institution."

b) Adding Clause 13 as follows:

"13. A small-value loan is a loan as prescribed in Clause 2 of Article 102 of the Law on Credit Institutions and does not exceed VND 100,000,000 (one hundred million) Vietnamese dong."

c) Adding Clause 14 as follows:

"14. Related parties of the customer are organizations or individuals related to the customer as prescribed in Clause 24 of Article 4 of the Law on Credit Institutions."

2. Amending and supplementing Clause 2 of Article 4 as follows:

"2. Customers borrowing from credit institutions must ensure that the borrowed funds are used for the agreed purposes, repay the principal and interest of the loan, and pay all fees fully and on time according to the agreement with the credit institution."

3. Amending and supplementing Clause 3 of Article 7 as follows:

"3. Having a feasible plan for using the capital. This condition is not mandatory for small-value loans."

4. Amending and supplementing Article 9 as follows:

"Article 9. Loan application documents
1. When there is a need for a loan, the customer must provide the credit institution with:
a) Information, documents, and data proving eligibility for borrowing as stipulated in Article 7 of this Circular and other information, documents, and data as guided by the credit institution;
b) Information about related parties of the customer as prescribed in Clause 2 of this Article.

Information about related parties who are individuals includes: name; individual identification number; nationality, passport number, date of issue, place of issue for foreigners; relationship with the customer.

Information about related parties who are organizations includes: name, business registration code, main office address, business registration certificate number or equivalent legal document, legal representative, relationship with the customer.

2. The provisions of point b Clause 1 of this Article apply in the following cases:
a) At the time of applying for a loan at a commercial bank, cooperative bank, or foreign bank branch, if the total outstanding credit balance (including the loan amount requested by the customer) is equal to or greater than 0.1% of the commercial bank's, cooperative bank's, or foreign bank branch's own capital at the end of the most recent working day;
b) At the time of applying for a loan at a non-bank credit institution or microfinance organization, if the total outstanding credit balance (including the loan amount requested by the customer) is equal to or greater than 0.5% of the non-bank credit institution's or microfinance organization's own capital at the end of the most recent working day;
c) At the time of applying for a loan at a people's credit fund, if the total outstanding credit balance (including the loan amount requested by the customer) is equal to or greater than 1% of the people's credit fund's own capital at the end of the most recent working day;
d) In the case where the credit institution has negative own capital, the above ratios shall be applied to the charter capital or capital granted for foreign bank branches.

5. Amending and supplementing Clause 2 of Article 16 as follows:

"2. Customers are responsible for providing truthful, accurate, complete, and timely information, documents, and data to the credit institution and bear responsibility for the provision of such information, documents, and data:
a) The information, documents, and data prescribed in Clause 1 of Article 9 of this Circular;
b) Reports on the use of borrowed funds and evidence showing that the borrowed funds have been used for the intended purpose as stated in the loan agreement;
c) Information, documents, and data on measures to secure the loan in cases where the credit institution and the customer have agreed to apply security measures."

6. Amending and supplementing Point b(iii) Clause 2, Point c(iii) Clause 2, and adding Point c(iv) Clause 2 of Article 22 of Circular No. 39/2016/TT-NHNN amended and supplemented by Point c, d Clause 6 of Article 1 of Circular No. 06/2023/TT-NHNN dated June 28, 2023 issued by the Governor of the State Bank of Vietnam amending and supplementing some articles of Circular No. 39/2016/TT-NHNN dated December 30, 2016 issued by the Governor of the State Bank of Vietnam regarding the lending activities of credit institutions and foreign bank branches to customers as follows:

a) Amending and supplementing Point b(iii) Clause 2 as follows:

"(iii) In the case of lending to guarantee the performance of the borrower's obligations to a third party, the lending credit institution agrees with the borrower to freeze the loan amount at the lending credit institution in accordance with the law until the guarantee obligation is terminated;"

b) Amending and supplementing Point c(iii) Clause 2 as follows:

"(iii) In the case of lending to guarantee the performance of the borrower's obligations to a third party, ensuring the recovery of the loaned capital in the event that the parties do not fulfill their guarantee obligations;"

c) Adding Point c(iv) Clause 2 as follows:

"(iv) For small-value loans, measures to monitor the use of borrowed funds for the agreed purpose and repayment by the customer, ensuring the ability to recover the principal and interest of the loan fully and on time according to the agreement."

7. Amending and supplementing Article 24 of Circular No. 39/2016/TT-NHNN amended and supplemented by Clause 8 of Article 1 of Circular No. 06/2023/TT-NHNN as follows:

"Article 24. Inspection of Loan Usage
1. The customer shall have the obligation to use the borrowed capital for the agreed purpose, repay the principal, interest, and fees fully and on time as stipulated; report on the usage of the borrowed capital and provide information, documents, and data proving that the borrowed capital has been used for the agreed purpose.
2. Credit institutions have the right and obligation to inspect and supervise the usage of the borrowed capital and repayment by customers as provided for in Clause 1 of Article 102 of the Law on Credit Institutions; they may require customers to report on the usage of the borrowed capital and provide information, documents, and data proving that the borrowed capital has been used for the agreed purpose.
3. For loans with small value, credit institutions shall take measures to inspect and supervise the usage of the borrowed capital for the agreed purpose and repayment by customers, ensuring the ability to recover the principal and interest of the loan fully and on time as stipulated.

8. Amend and supplement Clause 1 and Clause 3, and add Clause 5, Clause 6, and Clause 7 of Article 26 as follows:

a) Amend and supplement Clause 1 as follows:

"1. Comply with the provisions regarding cases not allowed to lend, restrictions on lending, and limits on lending under the Law on Credit Institutions and the regulations of the State Bank of Vietnam on limits and safety ratios in the operation of credit institutions."

b) Amend and supplement Clause 3 as follows:

"3. Implement classification, provision for impairment, and use of provisions to handle risks related to lending activities in accordance with the law."

c) Add Clause 5 as follows:

"5. In cases where lending is to ensure the fulfillment of the borrower's obligations towards third parties, the lending credit institution shall agree with the customer to freeze the amount of the loan at the lending credit institution until the guarantee obligation ends, in compliance with the law."

d) Add Clause 6 as follows:

"6. Credit institutions must store loan files in accordance with the Law on Credit Institutions; the retention period for loan files shall be carried out in accordance with the law on recordkeeping."

đ) Add Clause 7 as follows:

"7. Credit institutions must request customers to provide documents and data proving a feasible plan for using the capital, the customer's financial capability, and the lawful purpose of using the capital before deciding to lend, except for loans with small value.

For loans with small value, credit institutions must have at least information about the lawful purpose of using the capital and the customer's financial capability before deciding to lend."

Article 2. Repeal Article 29, Article 32 of Circular No. 39/2016/TT-NHNN and Article 32g of Circular No. 39/2016/TT-NHNN amended and supplemented by Clause 11 of Article 1 of Circular No. 06/2023/TT-NHNN.

This Circular takes effect from December 25, 2025/.

The Director of the Office, the Head of the Monetary Policy Department, the Heads of units under the State Bank of Vietnam, the Governors of the State Bank of Vietnam branches in provinces and centrally-administered cities, credit institutions, and foreign bank branches are responsible for implementing this Circular.

Article 4. Implementation provisions

1. This Circular takes effect from July 1, 2024.

2. Repeal Clause 8 and Point b of Clause 9 of Article 1 of Circular No. 06/2023/TT-NHNN.

3. For lending agreements and credit contracts signed before this Circular takes effect, credit institutions and customers shall continue to implement the contents of the lending agreement and credit contract signed in accordance with the applicable laws at the time of signing the agreement and contract. In case of amending or supplementing the lending agreement or credit contract, the amended or supplemented content must comply with the provisions of this Circular.