Are banks in Vietnam required to conduct assessment trực tiếp bóng đá k+ assets before offering a loan?

Regarding this matter, LawNet would like to answer as follows:

1. Are banks in Vietnam required to conduct assessment trực tiếp bóng đá k+ assets before offering a loan?

According to Article 7 trực tiếp bóng đá k+Circular No. 39/2016/TT-NHNN, a credit institution shall consider granting a decision to offer a loan to a customer who meets the following requirements:

- If that customer is a legal person, it must have civil capacity in accordance with the civil law jurisdictions. If that customer is a natural person, (s)he must be aged exactly 18 years or older and have full capacity for civil conduct in accordance with the civil law jurisdictions, or must be aged between exactly 15 and nearly 18 years and must not have his/her incapacity or restricted capacity for civil conduct as provided by laws.

- Demonstrate that customer’s demands for a loan to be used for legally accepted purposes.

- Establish that customer’s plan for effective use trực tiếp bóng đá k+ borrowed fund.

- Prove the customer’s sound financial capability to repay debt owed.

To be able to consider whether customers meet the conditions for a loan? Is the information and assets provided by customers not truthful or accurate? The Bank will need to assess the customer's ability to meet loan conditions.

According to the provisions trực tiếp bóng đá k+ Clause 1, Article 17 trực tiếp bóng đá k+Circular No. 39/2016/TT-NHNN:

1. The credit institution shall assess customer’s ability to satisfy loan requirements as prescribed by Article 7 trực tiếp bóng đá k+Circular No. 39/2016/TT-NHNNin order to consider granting a decision to offer a loan. In the course trực tiếp bóng đá k+ such assessment, the credit institution can use the internal credit rating system associated with information available at the National Credit Information Center trực tiếp bóng đá k+ Vietnam and other communications channels.

Specifically, based on Point b, Clause 2, Article 22 trực tiếp bóng đá k+Circular No. 39/2016/TT-NHNN(amended by Clause 6, Article 1 trực tiếp bóng đá k+Circular No. 06/2023/TT-NHNN) on internal rules on lending trực tiếp bóng đá k+ the credit institution shall be implemented in a consistent manner within the entire network trực tiếp bóng đá k+ the credit institution, the procedures for assessing include:

- The maximum duration for assessing a loan application and decide to grant a loan; delegation or assignment trực tiếp bóng đá k+ rights and responsibilities to each individual or department in loan application assessment, approval and issuance trực tiếp bóng đá k+ lending decisions, including those for digital lending operations prescribed in Article 32dd trực tiếp bóng đá k+Circular No. 39/2016/TT-NHNN(if any); other workloads as part trực tiếp bóng đá k+ loan application assessment, approval and lending decision-making procedures;

- Cases in which loans are given for making capital contributions under capital contribution contracts, investment cooperation contracts or business cooperation contracts for executing investment projects;

- In case trực tiếp bóng đá k+ a loan used for making cash payment as security for performing an obligation, measures for freezing amounts trực tiếp bóng đá k+ borrowed funds disbursed by the lending credit institution in accordance with regulations trực tiếp bóng đá k+ law, and under specific agreements trực tiếp bóng đá k+ the parties included in the loan agreement until fulfillment trực tiếp bóng đá k+ the secured obligation;

Assessment trực tiếp bóng đá k+ assets is considered an indispensable step in considering and deciding to grant a loan. This process will determine the quality trực tiếp bóng đá k+ the loan that the Bank grants to customers and is the basis for the Bank to make accurate lending decisions.

Through that, the Bank will detect and predict bad cases that can lead to the risk trực tiếp bóng đá k+ not being able to repay the loan or the worst situation for the Bank, thereby preventing and limiting possible losses.

Thus, assessment trực tiếp bóng đá k+ assets before lending is something the Bank is required to do in accordance with the standards and regulations trực tiếp bóng đá k+ thetrực tiếp bóngon price appraisal and the Bank's internal regulations on lending.

2. Procedures for assessment trực tiếp bóng đá k+ collateral by a bank in Vietnam

Collateral is a type trực tiếp bóng đá k+ asset for security for obligation fulfillment to the secured party. Based on Article 8 trực tiếp bóng đá k+Decree No. 21/2021/ND-CP, collateral for security for obligation fulfillment includes:

- Current properties or off-plan properties, except for cases where theCivil Codeor other relevant laws forbid sale, transfer or other change trực tiếp bóng đá k+ ownership at the time trực tiếp bóng đá k+ establishing security contracts, security measures;

- Properties sold under property sale agreements with retention trực tiếp bóng đá k+ ownership;

- Properties considered as subjects trực tiếp bóng đá k+ obligations under infringed bilateral contracts in case trực tiếp bóng đá k+ lien measures;

- Properties under general public’s ownership if prescribed by relevant laws.

- Typically, the procedures for assessment trực tiếp bóng đá k+ assets by a bank will include the following steps:

Step 1: Receive the collateral file, verify general information, and determine the legal value trực tiếp bóng đá k+ the collateral.

Step 2: Develop an appraisal plan, schedule an appointment with the client to visit the location trực tiếp bóng đá k+ the existing asset for actual inspection and valuation.

Step 3: Use specific procedures as required by the bank to determine the value trực tiếp bóng đá k+ the collateral, such as the listed selling price, current market price, potential increase or decrease in asset value, etc.

Step 4:Prepare the minutes and report the assessment results.

Step 5: Prepare the collateral dossier, register the secured transaction, and store the documentation.

Best regards!

Key word: collateral | bank | in Vietnam | Vietnam | assessment trực tiếp bóng đá k+ assets |

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