How much is the interest rate for loan? Do we have high profits and not violating the law on the crime of usury? Let’s find out together about personal loans in Vietnam.
If you are a Vietnamese citizen. Currently living and working in Vietnam. Then you should read again and again Civil Code 3-5 times to master the provisions of the law.
Your lending to others is a civil transaction. Between the two parties involved in the transaction, they must perform civil rights and obligations arising and prescribed in civil law.
When a dispute arises, depending on the extent and situation, the procedure will base on civil and criminal law to resolve. So you also need to read more about criminal law.
Regarding the maximum installment loan,
Article 468 of the 2015 Civil Code provides the following interest rates:
” 1. The interest rate is agreed by the parties.
Where the parties have agreed on an interest rate, the agreed interest rate may not exceed 20% / year of the loan, unless otherwise prescribed by related laws …
Where the interest rate as agreed by the agreement exceeds If the interest rate limit specified in this clause, the excess interest rate has no effect. ”
Thus, the interest rate is agreed by the parties and must not exceed: 20% / year of the loan will be protected by law when there is a dispute. If higher than 20% / year. When a dispute arises, the law does not recognize and protect the lender’s interest in that excess interest.
So, the average maximum interest rate a month will be: 20% / 12 months = 1.66% / month. This is the interest rate that the law protects lenders when a dispute arises.
Thus, we can negotiate lending with interest rates higher than this. That means accepting the risk of higher interest rates will likely be lost when a dispute occurs.
But how much interest is higher than the regulations so as not to break the law. Not prosecuted guilty of usury?
Regarding constituting the crime of usury loan
According to Article 201 of the Criminal Code No. 100/2015 / QH13 dated November 27, 2015, the following provisions are prescribed:
” 1. Any person in a civil transaction who lends at an interest rate of 5 times the highest interest rate prescribed in the Civil Code, illegally gains from VND 30,000,000 to under VND 100,000,000 or has been sanctioned an administrative violation for this act, or has been convicted of this crime, has not yet had their criminal records wiped out but also committed violations, shall be imposed a fine of between VND 50,000,000 and VND 200,000,000 or subject to non-custodial reform for up to 3 years .
2. Committing the crime of illegally earning VND 100,000,000 or more, a fine of between VND 200,000,000 and 1,000,000,000 or a prison term of between 06 months and 03 years.
3. Offenders may also be imposed a fine of between VND 30,000,000 and VND 100,000,000, banned from holding certain posts, practicing certain occupations or doing certain jobs for between 1 and 5 years. ”
Thus, the highest interest rate prescribed by law constituting the crime of usury is 100% per year.
Perinterest month asrate:5 x 1.66% = 8.3% / month
Solutions and practical examples lender has
Actual Solution in progress
When lending to individuals. To limit the risk of losing capital or out of greed. Lenders have increased lending rates to raise money in case of debt default.
In fact, for some individuals. When lending with high interest rates. Debtors are unable to pay. They still want to collect both principal and interest. Some of these excesses are black credit.
Is the solution to raising interest rates high to limit risks effective? Or just the lust of the lender? Push borrowers into the know-how! Resulting in unnecessary disputes. Lending money is still easy to lose at any time. Total return on capital flows is still inefficient.
The platform provides peer-to-peer security solutions for borrowers and lenders. Help the lender be guaranteed no loss of capital when lending. So they will feel secure when lending. Acceptable lending rates at low interest rates acceptable, and in accordance with the provisions of law.
The total profit gained from capital flows will be more regular. Definitely higher than the old solution. Thanks to the repayment of the borrower and no debt arrears. Limiting the situation of usury, black credit.
Borrowers can borrow at lower interest rates. And increased security after a prestigious loan. They will have a will to repay the debt better. The pressure of debt repayment is also greatly reduced.
Through the content of the article. Moneynextdoor wants you to know how much the loan rate is in compliance with the law. Reduce the situation of usury, black credit. Or accidentally involved in charges of usury. Help your capital flow more profitable.