Regulations on exemption and reduction of bank loan interest under new law

Office of Legal Consulting of Lao Dong Newspaper replied:

Clause 38, Article 4 of the Law on Credit Institutions 2024 stipulates that a credit institution is an economic organization with legal status that performs one, some or all banking activities as prescribed in this Law. Credit institutions include banks, non-bank credit institutions, microfinance institutions and people's credit funds.

Article 103 of the Law on Credit Institutions 2024 stipulates the termination of credit granting, debt settlement, and interest exemption and reduction as follows:

1. Credit institutions have the right to terminate credit granting and collect debts before maturity when discovering that customers provide false information or violate the content of the agreement in the contract, credit granting agreement, or guarantee contract.

2. In case the parties do not have other agreements, the credit institution has the right to handle debt and secured assets according to the contract, credit agreement, guarantee contract and provisions of law. The restructuring of debt repayment terms, purchase and sale of debt by the credit institution shall be implemented according to the regulations of the Governor of the State Bank.

3. In case the customer or guarantor cannot repay the debt due to bankruptcy, debt collection by the credit institution shall be carried out in accordance with the provisions of the law on bankruptcy.

4. Credit institutions have the right to decide to exempt or reduce interest and fees for customers according to the internal regulations of the credit institution.

Thus, the bank has the right to decide to exempt or reduce interest and fees for customers according to the bank's internal regulations.