15% Interest rate applicable for some of short term loans in VND

Circular No. 14/2012/TT-NHNN, dated May 04, 2012 on providing for maximum interest rate applicable for short term loans in Vietnamese dong of credit institutions, foreign bank’s branches to borrowers for meeting demands of capital for several economic industries and sectors. This Circular will effect on May 08, 2012.

Accordingly, maximum interest rate of short term loans in VND shall equal the maximum interest rate applicable to deposits in VND with term of one month and more as fixed by the SBV plus (+) 3%/year. As a result, maximum interest rate of short term loans in VND shall be 15%/year (the maximum interest rate applicable to deposits in VND with term of one month or more is 12%/year as stipulated in the Circular 08/2012/TT-NHNN)

The short-term loans in VND applicable maximum interest rate prescribed herein are for loans to meet capital needs:

  1. For agriculture and rural development in accordance with provisions of the Decree No. 41/2010/ND-CP dated 12 April 2010 of the Government on credit policies for agriculture and rural development;
  2. For plans, projects of production, business of exports in accordance with provisions of Commercial laws;
  3. For the production, business of small medium sized enterprises in accordance with provisions of the Decree No. 56/2009/ND-CP dated 30 June 2009 of the Government on giving support to the development of small and medium sized enterprises;