Decision No. 18/NH-QĐ Issuing Provisory Rules on Short-Term Credit for Individuals, Sole Proprietors, and Family Businesses

Pursuant to …;

DECISION NO. 18/NH-QĐ OF APRIL 27, 1988

ISSUING PROVISIONALLY THE REGULATIONS ON SHORT-TERM CREDIT

FOR INDIVIDUALS, HOUSEHOLDS AND FAMILY ECONOMIES.

CHAIRMAN OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the Organization of the Council of Ministers dated July 4, 1981;

Pursuant to Decree No. 35-CP dated February 9, 1981 of the Council of Ministers stipulating the tasks, powers of the Minister and functions of Ministries in certain areas of state management;

Pursuant to Decree No. 53-HĐBT dated March 26, 1988 of the Council of Ministers on the organization of the State Bank of Vietnam,

DECISION:

Article 1. - Issuing provisionally the Regulations on short-term credit for individuals, households and family economies.

12/2025/TT-BNNMT dated June 19, 2025 issued by the Minister of Agriculture and Environment- These regulations shall take effect from the date of signature and replace all previous related credit regulations issued by the State Bank of Vietnam..

Article 3. - The General Director of the Specialized Commercial Bank of Vietnam shall provide specific guidance for each economic sector.

Article 4. - Comrades Chief of Office, General Director of the Specialized Commercial Bank of Vietnam, Heads of Departments, Inspectors of the State Bank; Directors of Branches of the State Bank and Specialized Commercial Banks in provinces, cities, special zones or regions are responsible for organizing the implementation of this Decision.

RULES

SHORT-TERM CREDIT FOR

INDIVIDUALS, HOUSEHOLDS AND FAMILY ECONOMIES

(Issued pursuant to Decision No. 18-NH/QĐ dated April 27, 1988

of the General Director of the State Bank of Vietnam).

PART

ONE GENERAL PROVISIONS

Article 1. - The Bank provides short-term loans to individuals, households, and family economy operators (referred to as customers) for production and business activities in accordance with state policies and laws to fully utilize potential resources such as materials, equipment, labor, and capital to develop production and increase social products.

Article 2. - Short-term credit must ensure economic efficiency (with material guarantees, correct use of funds), timely repayment of principal and interest.

Article 3. - Customers wishing to borrow from the Bank must meet the following conditions:

1. Having a legal business registration or permission to practice a profession;

2. Having a permanent residence registration at the district, town, city, or provincial level where the loan is sought;

3. Having self-owned capital as prescribed by the Bank;

4. Providing collateral assets to guarantee the loan debt;

5. Accepting the Bank's credit regulations.

Article 4. - The objects of short-term credit include:

- Costs for construction and expansion of production and business facilities; purchasing and repairing production equipment, farming tools, breeding, processing, transportation, construction, raising and catching aquatic products.

- Costs for product reserves, production, consumption, production services, repairs, construction, transportation.

Article 5. - The price for calculation and lending shall be based on the price that the customer agrees to pay the seller.

Customers are fully responsible for complying with state pricing policies.

Article 6. - The term of short-term credit generally does not exceed six months. The specific term of the loan is agreed upon between the customer and the Bank.

In special cases, there will be separate guidance, but the maximum term shall not exceed twelve months.

Article 7. - The interest rate for short-term credit shall be implemented within the framework of interest rates prescribed by the General Director of the State Bank of Vietnam.

Article 8. - Customers borrow at the branch of the Bank where they have an account. The Bank opens a regular loan account for the customer.

PART TWO

SPECIFIC PROVISIONS

Article 9. - Each time borrowing, the customer submits a "Loan Application Form" to the Bank branch. Within three working days, if the Bank approves the loan, a promissory note with a repayment schedule (one repayment period per month) is made; if the loan is not approved, the customer must be informed.

Article 10. - The specific amount of the loan requested by the customer is approved by the Bank based on the results of reviewing the necessary and reasonable loan requirements of the customer after utilizing their own capital and within the Bank's available capital (including cash).

Article 11. - The Bank pays the proceeds directly to the beneficiary according to the customer's request, without transferring the loan into the customer's deposit account for gradual use.

Loaning and repayment in cash are agreed upon by the customer and the Bank.

Article 12. - The interest rate for short-term loans is recorded in the promissory note with the repayment schedule.

The Bank calculates interest monthly, collects and pays interest on a fixed day.

Article 13. - Upon maturity, the customer must pay the money or deduct from the deposit account to repay the Bank. If the customer fails to repay on time, the Bank will proactively deduct from the account to recover the debt.

1. In case the customer does not have sufficient funds to repay the debt, the Bank transfers it to overdue debt and continues to monitor until full recovery.

2. In case the customer goes bankrupt or joins other economic organizations, they must first fully repay the principal and interest to the Bank regardless of the agreed repayment period. If the customer leaves a debt, the Bank will implement asset seizure measures.

Article 14. - The Bank conducts monthly or spot checks on the use of borrowed funds, at least once a month. In case the customer violates the credit regulations, the Bank applies restrictive measures such as limiting or stopping loans, recovering capital and interest ahead of schedule, seizing collateral assets, and initiating legal proceedings.

PART THREE IMPLEMENTING PROVISIONS

Article 15. - The specialized Vietnamese banks, the Department of Economic Planning, and the Department of Accounting and Finance shall be responsible for detailing, guiding, and supervising the implementation of these Regulations.