Công văn 34/CV-NHNN1 về việc cho vay không có bảo đảm bằng tài sản đối với CBCNV và thu nợ từ tiền lương, trợ cấp và các khoản thu nhập khác

To: Credit Institutions

Before December, 1999 several credit institutions submitted a request to the State Bank of Vietnam for a permission to provide credit to public employees and to collect payment from their salaries, allowance and other regular incomes. This type of lending is regarded as lending without asset-backed security under the provision in the Article 52 of the Law on credit institutions. However, by that time since there has been any specific regulation by the Government on lending without asset-backed security, securing measures against loans are subject to the Regulation 217/QD-NH1 on the mortgage, pledge, and guarantee, issued by the Governor of the State Bank of Vietnam on August 17th, 1996. As such, there has not been adequate legal framework for conducting loans without security. Since this type of borrowing is in need and in line with a policy of the Government in expansion of consumer credit, the State Bank of Vietnam has consulted with several State-management Authorities and Organization representing employees for getting consensus prior to a submission to Prime Minister for an approval.

However, because of different opinions of other authorities, the State Bank of Vietnam has issued a dispatch No. 938/CV-CSTT3 on December 3, 1999 asking credit institutions not to conduct lending without security to public employees and collecting payment from salaries, allowances and other regular incomes.

On December, 29th, 1999 the Government issued Decree No.178/1999/ND-CP on securing measures for credit of credit institutions, which shall be effective from 13 Jan, 2000. The decree also provides for lending without security. Based on this Decree and on the real demand of lending to public employees, with the aim of contributing to the credit expansion and of meeting financial demand of public employees, the State Bank of Vietnam issues a guidance to credit institutions for conducting loans without security to public employees and collecting payment from regular income as follows:

1. Credit institutions shall take initiative in making decision on lending to public employees without security in an accordance with the Regulation on lending by credit institutions to customers and with regulations of the Government and the Governor of the State Bank of Vietnam on lending without security in the principle of recovery of loans and being self-accountable.

2. Conditions of public employees for borrowing:

a. Having legal competence and competence for civil conducts, having reputation on using loans and making payments, including principal and interest payment on time. For those employees who borrow for the first time, the consent of the management authorities or the authorities, which manage and make payment of employees' income is required.

b. Having investment, production, business or service projects which are feasible and repayable or having projects or plan for consuming which are in line with applicable laws

c. Objectives of using loans are legal. Borrowers shall have responsibility before laws on using loans in accordance with their commitment.

d. Having salary, allowance or other income paid by organizations, institutions in a regular and stable way in a certain period of time as prescribed by credit institution for securing repayment.

dd. Having commitment on securing by assets as requested by credit institution in the case of using loans which are not committed in the loan contract; having commitment in making payment before the due date if they are unable to conduct securing measures by assets as provided for in this paragraph.

3. Credit institution shall prescribe a limit of lending to a single public employee without security on a basis of their financing sources, the creditworthiness, the level of regular income of borrowers against the loan and other financial sources which the borrower could use and commit for making payment.

4. Credit institution shall not provide loan without security to public employees who are members of Board of directors, of Board of controllers, General director (director), vice general director of their institutions; to appraisal officers, approval officers, parents, spouses, children of members of Board of Directors, Board of controllers, General director of the credit institution.

5. The amount of loan without security provided to public employees of a credit institution shall not exceed the level prescribed by the State Bank of Vietnam on the total loans without security.

6. Credit institutions may come to agreement with the borrower and the borrowers' management organizations or institutions which manage and make payment to public employees on the assignment of power of attorney of public employees to the above-mentioned institutions for making payment to credit institutions as committed from employees' income.

7. When lending to public employees without asset security, credit institutions should ensure the equity on the rights and obligations of each party as provided for by the Law on credit institutions and should publicly disclose conditions for borrowing and explain to employee-management organization which manage and make payment to employees and to the Trade Union of the borrower for having their support.

This official dispatch shall be effective from 14 January, 2000 and shall replace the dispatch No.938/CV-CSTT3 issued on 3 Dec, 1999 by the State Bank of Vietnam.

Based on the content of this dispatch, credit institutions shall issue guidance for implementation within their system. Problems in implementation should be informed timely to the State Bank of Vietnam for solution.

---------------

This document is handled by Luật Dương Gia. Document reference purposes only. Any comments, please send to email: info@luatduonggia.vn