THE INTEREST RATE FOR OVERDUE RE-FINANCING LOAN IS 150%
On November 28, 2019, the Governor of the State Bank of Vietnam issues the Circular No. 24/2019/TT-NHNN on promulgating the re-financing in the form of sub-lending under credit dossiers for credit
institutions.
In accordance with this Circular, the interest rates for re-financing loans and extended re-financing loans in the form of sub-lending under credit dossiers is the interest rate announced by the State Bank in each period. The interest rate for overdue re-financing loan is 150% of the interest rate applicable to the re-financing loan.
The time duration for re-financing loans in the form of sub-lending under credit dossiers shall be considered and prescribed by the State Bank, and the time duration must be less than 12 months. The time duration for each extension must not exceed the initial time duration for re-financing loans; the total time duration for re-financing and extended re-financing loans must not exceed 12 months.
The amount of money for re-financing loans or extended re-financing loans in form of sub-lending under credit dossiers shall be considered and decided by the State Bank on the basis of the actual solvency of credit institutions but shall not exceed 60% of the total outstanding principal of loans in the list of credit dossiers for re-financing loans or extending re-financing loans.
This Circular takes effect on January 18, 2020.
