Collection xem bóng đá trực tiếp vtv2 judgments on accepting loan interest rates above 20%/year in Vietnam

Hello, Lawnet would like to answer your questions as follows:

According to the provisions xem bóng đá trực tiếp vtv2 Article 468 xem bóng đá trực tiếp vtv2 Vietnam'strực tiếp bóng đástipulates:

- The rate xem bóng đá trực tiếp vtv2 interest for a loan shall be as agreed by the parties.

The rate xem bóng đá trực tiếp vtv2 interest for a loan agreed by the parties may not exceed 20% per year, unless otherwise prescribed by law.

Thus, in the property lending relationship, the interest rate will be agreed upon by the parties but must not exceed 20% per year xem bóng đá trực tiếp vtv2 the loan amount. However, also according to the above provisions, if "other relevant laws stipulate otherwise," the lending interest rate will comply with that provision.

Article 4 xem bóng đá trực tiếp vtv2 theLuật Các tổ chức tín lịch trực tiếp bóng đá hômstipulates: Non-bank credit institutions include finance companies, financial leasing companies and other non-bank credit institutions.

Therefore, financial companies are not only governed by the Civil Code 2015 but also by the Law on Credit Institutions and related documents.

In Article 9 xem bóng đá trực tiếp vtv2Thông tư 43/2016/TT-NHNNstipulates:

- Consumer loan interest rate fixed by a finance company shall conform to regulations xem bóng đá trực tiếp vtv2 the State Bank on lending transactions xem bóng đá trực tiếp vtv2 credit institutions and/or foreign bank branches with customers.

- Finance companies shall adopt regulations on the range xem bóng đá trực tiếp vtv2 consumer loan interest rates to be used consistently in its entire network in specific periods xem bóng đá trực tiếp vtv2 time, including the maximum and minimum interest rates applied to each consumer credit line.

Because the law does not specify the ceiling interest rate and the maximum interest rate xem bóng đá trực tiếp vtv2 financial companies. Therefore, the maximum interest rate for consumption purposes at the financial company will be adjusted by the financial company and must be approved by the State Bank.

Also in,Thông tư 39/2016/TT-NHNNstipulates:

- A credit institution and its customer shall agree on the interest rate depending on capital demands and supplies on the market, loan demands and creditworthiness xem bóng đá trực tiếp vtv2 customers, unless otherwise stipulated by the State Bank's regulations on the maximum interest rate set forth in Clause 2 xem bóng đá trực tiếp vtv2 this Article.

- A credit institution and customer shall agree on the interest rate on short-term loan denominated in Vietnamese dong but shall not allow it to exceed the maximum interest rate decided by the State Bank’s Governor over periods xem bóng đá trực tiếp vtv2 time in order to meet certain demands for borrowed fund as follows:

+ Loans taken out to support the agricultural and rural development sector under regulations xem bóng đá trực tiếp vtv2 the Government on credit policies for agricultural and urban development;

+ Loans taken out to implement the export business plan in accordance with theLuật trực tiếp bóngand other instructional directives thereof;

+ Loans taken out to finance business activities xem bóng đá trực tiếp vtv2 small and medium-sized enterprises under the Government’s regulations on support for development xem bóng đá trực tiếp vtv2 small and medium-sized enterprises;

+ Loans taken out to develop ancillary industries under the Government’s regulations on development xem bóng đá trực tiếp vtv2 ancillary industries;

+ Loans taken out to finance business operations xem bóng đá trực tiếp vtv2 high technology application enterprises under the provisions xem bóng đá trực tiếp vtv2 theLuật trực tiếp bóng đáand other instructional directives thereof.

Thus, the lending interest rate will be agreed upon by the parties, and the financial company will be able to set its own lending interest rate. Above all, when self-determining interest rates, financial companies must also obtain approval from the State Bank. Therefore, it is not illegal for financial companies to lend at interest rates higher than 20% according to the provisions xem bóng đá trực tiếp vtv2 the Civil Code and cannot be sanctioned.

Here are some court judgments that accept loan interest rates above 20% per year, which you can refer to:

Judgment50/2017/DS-STdated August 15, 2017 on credit contract dispute

- Level xem bóng đá trực tiếp vtv2 trial: First instance

- Judicial body: Hai Chau District People's Court, Da Nang City

- Quote from the content: "On September 7, 2014,Mr. Tran Hong H signed the loan application cum credit contract (referred to as credit contract) with Joint Stock Commercial Bank A (hereinafter referred to as the Bank). As agreed in the contract, the Bank lends Mr. H an amount xem bóng đá trực tiếp vtv2 VND 31,430,184 (xem bóng đá trực tiếp vtv2 which VND 1,496,675 is the contract insurance premium) at an interest rate xem bóng đá trực tiếp vtv2 4.59%/month for personal consumption. The loan term is 19 months, and the total amount xem bóng đá trực tiếp vtv2 principal and interest to be paid is VND 47,771,000, payable on the 8th xem bóng đá trực tiếp vtv2 every month, xem bóng đá trực tiếp vtv2 which the first 19 months pay VND 2,515,000 and the last month pay VND 2,501,000.

Judgment45/2019/DS-STdated July 25, 2019 on the dispute over a property loan contract

- Level xem bóng đá trực tiếp vtv2 trial: First instance

- Judicial body: People's Court xem bóng đá trực tiếp vtv2 Ben Luc District, Long An Province

- Quoting the content: "On October 25, 2017, Mr. Huynh Le Minh T1 signed the loan application cum credit contract No. 20171026-0004706 with the one-member limited liability financial company Bank V ( Company) to borrow the amount xem bóng đá trực tiếp vtv2 33,338,000 VND. The agreed interest rate is 3.92%/month for the purpose xem bóng đá trực tiếp vtv2 borrowing money for personal consumption when Mr. T1 does not mortgage any assets for the company. As agreed in the contract, Mr. T1 is responsible for paying the company the principal and interest amount xem bóng đá trực tiếp vtv2 VND 63,544,639. After that, he will pay consecutively within 36 months; specifically, in the first 35 months, each month pays an amount xem bóng đá trực tiếp vtv2 VND 1,743,000, and the last month pays VND 2,539,639. The first payment period starts on December 1, 2017."

Judgment34/2018/DSSTdated April 6, 2018 on credit contract disputes

- Level xem bóng đá trực tiếp vtv2 trial: First instance

- Judicial body: People's Court xem bóng đá trực tiếp vtv2 Duc Hoa district, Long An province

- Quoting the content: "Through the petition xem bóng đá trực tiếp vtv2 the Company, the Trial Panel found that: Based on the credit contract No. 20160407-105007-1009 dated 4/4/2016, Mr. B has borrowed from the Company an amount xem bóng đá trực tiếp vtv2 VND 42,200,000 with a loan interest rate xem bóng đá trực tiếp vtv2 2.92%/month. Both capital and interest are 59,263,000 VND, and the form xem bóng đá trực tiếp vtv2 loan is deferred payment within 24 months. Mr. B can pay the contract three times in the amount xem bóng đá trực tiếp vtv2 7,410,000 VND, but he did not pay any amount on April 20, 2017. Now, Ms. P represents the company and asks Mr. B to be responsible for paying the amount xem bóng đá trực tiếp vtv2 49,383,000 VND. In which the principal is 33,550,834 VND and the interest is 15,832,166 VND, Mr. B agrees on the amount xem bóng đá trực tiếp vtv2 the debt but asks for a monthly payment xem bóng đá trực tiếp vtv2 2,470,000 VND until the debt is fully paid, which is not accepted by Ms. P on behalf xem bóng đá trực tiếp vtv2 the company. Considering that Mr. B owes the company for a long time without goodwill, the Trial Panel considers it necessary to force Mr. B to pay the company an amount xem bóng đá trực tiếp vtv2 VND 49,383,000. "In which the principal is 33,550,834 VND and the interest is 15,832,166 VND, which is consistent with the provisions xem bóng đá trực tiếp vtv2 Article 466 xem bóng đá trực tiếp vtv2 the Civil Code,"

JudgmentBản án 03/2019/KDTMdated October 25, 2019 on credit contract dispute

- Level xem bóng đá trực tiếp vtv2 trial: First instance

- Judicial body: People's Court xem bóng đá trực tiếp vtv2 Loc Ha district, Ha Tinh province

- Quoted content: "According to the Application for opening and using payment accounts, debit cards, e-banking services and loans (No. LDxxxxxxxxx), on November 28, 2016, the parties have agreed interest rate on debt in due date is 42%/year, no agreement on overdue debt interest rate. At the trial, the authorized representative xem bóng đá trực tiếp vtv2 Joint Stock Commercial Bank V requested an interest rate xem bóng đá trực tiếp vtv2 42%/year for the term debt. The overdue debt interest rate is 150% xem bóng đá trực tiếp vtv2 the debt interest rate within the term from October 1, 2017. The Panel found that the interest rate on debt within the term agreed by the parties, although higher than the limit interest rate specified in Article 468 xem bóng đá trực tiếp vtv2 the Civil Code, was consistent with the provisions xem bóng đá trực tiếp vtv2 Article 91 xem bóng đá trực tiếp vtv2 the Law on Credit Institutions and Clause 5 xem bóng đá trực tiếp vtv2 Article 466 xem bóng đá trực tiếp vtv2 the Civil Code. Therefore, this decision is accepted."

Judgment on property loan contract dispute No.78/2021/DS-ST

- Level xem bóng đá trực tiếp vtv2 trial: First instance

- Judicial body: People's Court xem bóng đá trực tiếp vtv2 District 11, Ho Chi Minh City

- Quoting the content: "On April 28, 2010, the defendant signed the Application for the issuance xem bóng đá trực tiếp vtv2 a credit card cum contract and a copy xem bóng đá trực tiếp vtv2 the Terms and Conditions for credit card issuance; agreed to the interest rate according to the Schedule xem bóng đá trực tiếp vtv2 Fees for S card products and services issued in Vietnam and according to Notice No. 113/TB-TTT dated July 4, 2011 xem bóng đá trực tiếp vtv2 S. The defendant accepted to apply the interest rate for credit cards. The application rate is 2.15%/month, the overdue interest rate is 150% xem bóng đá trực tiếp vtv2 the announced interest rate applied at the present time, and the overdue interest rate is 3.225%/month. Considering that the loan interest rate agreement is consistent with the provisions xem bóng đá trực tiếp vtv2 Clause 2, Article 91, and Article 95 xem bóng đá trực tiếp vtv2 the Law on Credit Institutions 2010, and the provisions xem bóng đá trực tiếp vtv2 Clauses 1 and 2, Article 13 xem bóng đá trực tiếp vtv2 Circular 39/2016/TT-NHNN dated December 30, 2016, the State Bank xem bóng đá trực tiếp vtv2 Vietnam regulates the lending activities xem bóng đá trực tiếp vtv2 credit institutions and foreign bank branches to customers. The trial panel considers that the interest rate agreement between the plaintiff and the defendant is completely voluntary and not against the law. Therefore, S asks Mrs. P to pay the interest amount up to the trial date xem bóng đá trực tiếp vtv2 June 16, 2021, xem bóng đá trực tiếp vtv2 VND 53,999,936 (fifty-three million, nine hundred and ninety-nine thousand, nine hundred and thirty-six), which is reasonable. The trial panel accepted."

Best regards!

Key word: interest rates in Vietnam | loan interest rates in Vietnam | contract dispute in Vietnam | property loan contract in Vietnam |

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