Headlines 18/05/2020 08:14 SA

Short-term loan interest rate ceiling in Vietnamese dong drops

Nguyễn Ân

State Bank of Vietnam has recently issued the Decision No. 920/QD-NHNN on maximum interest rates applied to Vietnamese-dong short-term loans according to clause 2 of Article 13 in the Circular No. 39/2016/TT-NHNN dated December 30, 2016 as follows:

- Credit institutions and foreign bank branches (except people’s credit funds and microfinance institutions) will apply the maximum interest rate of 5.0%/year to Vietnamese-dong short-term loans (decreased by 0.5% compared to the previous interest rate).

- People’s credit funds and microfinance institutions will apply the maximum interest rate of 6.0%/year to Vietnamese-dong short-term loans (decreased by 0.5% compared to the previous interest rate).

The interest rates applied to credit contracts or loan agreements signed prior to May 13, 2020 in accordance with laws in effect on dates of conclusion of these contracts or agreements will remain unchanged.

The Decision No. 920/QD-NHNN is in force from May 13, 2020, replacing the Decision No. 420/QD-NHNN dated March 16, 2020.

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