HCMC – The limit for small loans might be increased from VND100 million to VND400 million, exempting borrowers from providing a feasible capital use plan.
The State Bank of Vietnam (SBV) has drafted a circular amending Circular 39/2016/TT-NHNN in line with current economic conditions, and simplifying credit access for individual and institutional borrowers.
Under the draft, the small-loan cap is defined as not exceeding VND400 million at credit institutions (excluding People’s Credit Funds, where the limit is VND200 million). Unlike current regulations that cap these loans at VND100 million, the new proposal allows borrowers to skip the requirement of a feasible capital use plan. Instead, they only need to provide minimum information regarding their legal loan purpose and financial capacity.
According to the SBV, these adjustments reflect the rising demand for capital as living costs and spending needs often exceed the current VND100-million threshold. Additionally, the rapid growth of fintech and digital banking necessitates a more flexible legal framework for online lending. Despite eased access, the draft maintains strict risk controls, requiring electronic Know Your Customer (eKYC) and the storage of biometric and transaction data for audit and risk management purposes.
