INTEREST RATE IS EXPRESSED BY % PER YEAR MEANS 365 DAYS
This is the content prescribed at the Circular No. 14/2017/TT-NHNN of the State Bank of Vietnam dated September 29, 2017 on methods of calculating interest on depositing and credit extension transaction between credit institutions and customers.
In particular, Interest rate is expressed by % per year (annual interest rate), a year means 365 days. The credit institution may negotiate with the client on the interest duration and the date of determination of the balance for the calculation of interest.
As regards deposits and credit extensions on which the agreement is made in writing in the form of a specific agreement or a framework agreement.As regards deposits and credits which are received and granted under the model contracts and general terms and conditions of deposit receipt and credit extension arrangements. Credit institutions shall clarify information on the model contracts or general terms and conditions under the law on deposits and credit extensions. In addition, the credit institution must publicly disclose information on the interest calculating method at the head office and post such information on its website (if any).
The interests of deposits and credit extensions occurring from agreements between credit institutions and clients on calculating methods before January 01, 2018 shall be kept calculating as prescribed in signed agreements in accordance with the law at the time of signing.
This Circular takes effect on January 01, 2018.
