Circular No. 18/2019/TT-NHNN dated November 04, 2019 of the State Bank of Vietnam on amending, supplementing some Articles of the Circular No. 43/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam, stipulating the financial companies’ consumer loans

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Circular No. 18/2019/TT-NHNN dated November 04, 2019 of the State Bank of Vietnam on amending, supplementing some Articles of the Circular No. 43/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam, stipulating the financial companies’ consumer loans
Issuing body: State Bank of VietnamEffective date:
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Official number:18/2019/TT-NHNNSigner:Doan Thai Son
Type:CircularExpiry date:Updating
Issuing date:04/11/2019Effect status:
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Fields:Finance - Banking

SUMMARY

From 2020, financial company is allowed to remind debt with the maximum of 05 times/day

On November 04, 2019, the State Bank of Vietnam issues the Circular No. 18/2019/TT-NHNN on amending, supplementing some Articles of the Circular No. 43/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam, stipulating the financial companies’ consumer loans.

Accordingly, measures to urge and recover debts in accordance with customers’ characteristics and the provisions of law and excluding measures to threaten customers, in which the maximum number of debt reminding times is 05 times/day. Ways of debt reminding, time of debt reminding shall be mutually agreed upon by the parties in consumer loan contracts but shall be between 07 hours and 21 hours…

In addition, the total debit balance of consumer loan directly disbursed to customers at a financial company compared to the total debit balance of consumer loan of that financial company at the end of the working day immediately preceding the signing date of the consumer loan contract directly disbursed to the customers shall comply with the maximum rate according to the following schedule:

From January 01, 2021 to the end of December 31, 2021: 70%; From January 01, 2022 to the end of December 31, 2022: 60%; From January 01, 2023 to the end of December 31, 2023: 50%; From January 01, 2024: 30%.

This Circular takes effect on January 01, 2020.

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Effect status: Known

THE STATE BANK OF VIETNAM

 

No. 18/2019/TT-NHNN

SOCIALIST REPUBLIC OF VIETNAM

Independence – Freedom - Happiness

 

Hanoi, November 04, 2019

 

 

CIRCULAR

On amending, supplementing some Articles of the Circular No. 43/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam, stipulating the financial companies’ consumer loans

 

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

Pursuant to the Law on Credit Institutions dated June 16, 2010;

Pursuant to the Law amending and supplementing a number of Articles of the Law on Credit Institutions dated November 20, 2017;

Pursuant to the Government’s Decree No. 16/2017/ND-CP dated February 17, 2017 defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

Pursuant to the Government’s Decree No. 39/2014/ND-CP dated May 07, 2014 on the operation of financial company and financial leasing company;

Pursuant to the Government’s Decree No. 16/2019/ND-CP of February 01, 2019 on amending and supplementing Decrees on business conditions under the state management of the State Bank of Vietnam;

At the request of the Chief of the Banking Supervision Agency;

The Governor of the State Bank of Vietnam hereby promulgates a Circular amending and supplementing a number of Articles of the Circular No.43/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam on consumer loans of financial companies.

Article 1. Amending and supplementing a number of articles of Circular No.43/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam providing for consumer loans by financial companies (hereinafter referred to as Circular No. 43/2016/TT-NHNN)

1. Point b, Clause 2, Article 3 is amended and supplemented as follows:

“b) Expenses for study, medical examination and treatment, tourism, culture, physical training and sports;”.

2. To add Clause 5 into Article 3 as follows:

5. Direct disbursement to customers means that financial companies disburse consumer loans directly to customers in cash or through the use of non-cash payment services as mutually agreed upon in consumer loan contract, ensuring inspection and supervision of the purposes of loan use in accordance with law”.

3. Article 4 is amended and supplemented as follows:

“Article 4. Application of legal documents

1. Other provisions on lending related to consumer lending activities of financial companies are not provided for in this Circular, financial companies shall comply with the provisions on lending activities serving life demands in accordance with provisions of the State Bank on lending activities of credit institutions, foreign bank branches to customers.

2. The direct disbursement to customers shall comply with the provisions of this Circular.”.

4. Clause 2, Article 5 is amended and supplemented as follows:

“2. Financial companies shall manage, supervise and make statistics on consumer lending activities separate from other lending activities of financial companies, separating consumer loans directly disbursed to customers from other disbursement methods for consumer loans”.

5. Clause 4, Article 6 is amended and supplemented as follows:

“4. Financial companies shall report to the State Bank according to the following provisions:

a) When there is a change in the manager or supervisor of the service introduction points, the financial companies shall report to the State Bank branch in the province or city where the service introduction point is located, according to the following provisions:

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