How long is bad debt used to provide in CIC reports?
According to the provisions of Circular No. 31/2024/TT-NHNN dated June 30, 2024 of the State Bank of Vietnam (SBV), bad debt is understood as debts in the accounting balance sheet (bad debts within the balance sheet), including debts in groups 3, 4 and 5.
Specifically, according to Article 10, banks and non-bank credit institutions classify debts (except for payments on behalf of commitments outside the table) into 05 groups. If only considering the criteria for debt repayment period, bad debts include the following groups: Group 3 below the standard (term from 91 - 180 days), group 4 of doubts (term from 181 - 360 days) and group 5 with the possibility of losing capital (term over 360 days).
According to Circular No. 15/2023/TT-NHNN dated December 5, 2023, negative information about borrowers is TTTD about bad debts, violations of payment obligations and other unfavorable information affecting the results of the assessment of borrowers' repayment capacity (including information on bankruptcy, administrative violations and judgments and decisions of the Court that have come into legal effect for borrowers).
Information about bad debts, also known as negative information about borrowers, is only provided for a maximum period of 05 years, from the date of completion of that negative information, except in cases where it meets the requirements of state management agencies as prescribed by law.
Can customers with a history of bad debts borrow capital?
Customers with a history of bad debts still have the opportunity to access credit based on risk appetite and the principles of customer assessment of borrowers of credit institutions.
The risk assessment for customers is based on many factors according to legal regulations and internal regulations of each credit institution; information provided by CIC is one of many reference and support channels, not the only factor affecting the decision of the credit institution.
