Headlines 27/10/2022 10:55 SA

Vietnam to increase the maximum short-term loan interest rate in Vietnam Dong

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On October 24, 2022, the State Bank of Vietnam promulgated Decision No. 1813/QD-NHNN on the maximum short-term loan interest rate in Vietnam Dong of credit institutions and foreign bank branches for borrowers to satisfy the capital requirements for certain economic fields and sectors according to Circular No. 39/2016/TT-NHNN.

According to the Decision, the maximum short-term loan interest rate in Vietnam Dong is increased as follows:

- Maximum short-term loan interest rates in Vietnam Dong according to Clause 2 Article 13 of Circular No. 39/2016/TT-NHNN dated December 30, 2016 are as follows:

+ Credit institutions and foreign bank branches (except for People's Credit Funds and microfinance institutions) shall apply a maximum short-term loan interest rate of 5,5% per year.

(Currently, according to Decision No. 1730/QD-NHNN dated September 30, 2022, the maximum short-term loan interest rate in Vietnam Dong is 4,5% per year.)

+ People's Credit Funds and microfinance institutions shall apply a maximum short-term loan interest rate in Vietnam Dong of 6,5% per year.

(Currently, according to Decision No. 1730/QD-NHNN dated September 30, 2022, the maximum interest rate for short-term loans in Vietnam Dong is 4,5% per year.)

The applicable interest rate for credit contracts or loan agreements concluded before October 25, 2022 shall continue to be implemented according to such contracts and agreements in compliance with regulations of the law at the time of their conclusion.

Decision No. 1813/QD-NHNN comes into force as of October 25, 2022 and replaces Decision No. 1730/QD-NHNN dated September 30, 2020.

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