Decision 576/QD-NHNN 2023 maximum short-term loan interest rate in VND

DECISION

On the maximum short-term loan interest rate in Vietnamese dong of credit institutions and foreign bank branches for borrowers to meet the capital demand in service of a number of economic sectors and industries as prescribed in Circular No. 39/2016/TT-NHNN dated December 30, 2016

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THE GOVERNOR OF THE STATE BANK

- Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

- Pursuant to the Law on Credit Institutions No. 47/2010/QH12 dated June 16, 2010; the Law on Amending and Supplementing a Number of Articles of the Law on Credit Institutions No. 17/2017/QH14 dated November 20, 2017;

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

- Pursuant to Circular No. 39/2016/TT-NHNN dated December 30, 2016, of the Governor of the State Bank of Vietnam, prescribing the provision of loans by credit institutions and foreign bank branches to clients;

- At the proposal of the Director of the Monetary Policy Department.

DECIDES

Article 1. The maximum short-term loan interest rate in VND as prescribed in Clause 2 Article 13 of Circular No. 39/2016/TT-NHNN dated December 30, 2016 is defined as follows:

1. Credit institutions and foreign bank branches (except for people’s credit funds and microfinance institutions) shall apply the maximum short-term loan interest rate in VND which is 4.5% per annum.

2. People’s credit funds and microfinance institutions shall apply the maximum short-term loan interest rate in VND which is 5.5% per annum.

Article 2.

1. This Decision takes effect on April 03, 2023, and replaces Decision No. 314/QD-NHNN dated March 14, 2023, of the Governor of the State Bank of Vietnam, on the maximum short-term loan interest rate in Vietnamese dong of credit institutions and foreign bank branches for borrowers to meet the capital demand in service of a number of economic sectors and industries as prescribed in Circular No. 39/2016/TT-NHNN dated December 30, 2016.

2. The interest rate applied to credit contracts and loan agreements signed before the effective date of this Decision shall continue to be implemented under the signed credit contracts and loan agreements in accordance with law regulations at the time of contract and agreement signing.

Article 3. Chief of Office, Director of the Monetary Policy Department and heads of units of the State Bank of Vietnam, credit institutions, foreign bank branches shall implement this Decision./.