Home and car buyers can borrow from one bank to mature at another bank

From September 1, 2023, lending to prepay old loans at other banks is no longer limited to the scope of "business service" but also allows customers with outstanding loans to buy houses and cars.

The State Bank of Vietnam has just issued Circular 06 amending and supplementing a number of articles of Circular 39/2016 regulating lending activities, with easier conditions for accessing capital. This Circular will take effect from September 1.

In which, according to Article 8 of the old Circular, borrowing capital to repay loans at other credit institutions will not be allowed, except in the case of early repayment of loans for business activities, with the loan term is shorter than the remaining loan term of the old debt and has not yet been restructured.

However, in the newly issued Circular 06, the limit "for business activities" is no longer mentioned, the remaining two conditions on the time limit and the unimplemented structure are kept unchanged.

Accordingly, banks can lend to customers to pay off loans before maturity at other banks for the purpose of serving needs other than business activities, such as loans to buy houses and buy cars.

With the new regulation, flexibility in bank selection will be made easier than before. Customers can choose banks with lower interest rates or more support programs to borrow to optimize cash flow. Previously, if customers wanted to reverse a debt between banks, customers had to use another property as collateral to borrow from this bank, before repaying and withdrawing collateral on the old loan.

Besides giving customers more flexibility in handling old loans, the new Circular also adds a number of cases where loans are not allowed.

In particular, borrowing money from banks to deposit money will be prohibited. Banks are also not allowed to lend to customers for capital contribution payment, purchase or transfer of capital contributions of limited liability companies or partnerships; contribute capital, purchase, receive and transfer shares of joint stock companies that have not been listed or registered for trading on UPCoM.

Borrowing money from a bank to pay for capital contribution under a capital contribution contract, investment cooperation contract or business cooperation contract with an unqualified project is also subject to restrictions.

In addition to this content, a number of other loan conditions are also made simpler.

In lending activities by electronic means, credit institutions are entitled to verify customer information by electronic means (eKYC), national population database, citizen identification database, etc. .

Accordingly, the bank is entitled to enter into a loan agreement in the form of an electronic contract (previously only accepting paper contracts), and approve loans by electronic means.

For the needs of borrowing capital to serve the needs of consumer life, such as borrowing to buy a car, buying consumer equipment, etc., customers do not need to have a plan or project. The loan request only requires information about the total capital to be used, the purpose of using the capital, the time and the source of repayment. Particularly for the needs of borrowing capital to buy houses, build, renovate, receive the transfer of land use rights, customers still have to supplement plans and projects according to regulations.

Source: vtv.vn

Nguồn: vtv.vn