When natural disasters such as storms and floods occur, disrupted cash flows and property damage often lead many borrowers into unavoidable overdue situations. To promptly address difficulties and support the recovery of production and stabilization of livelihoods, the State Bank of Vietnam (SBV) has directed credit institutions to implement a range of support measures, among which loan interest reduction and waiver is an important tool to immediately relieve the financial burden for individuals and businesses.
This article, prepared by DNP Viet Nam Law Firm, provides accurate legal information for businesses and borrowers, along with practical notes to help clients correctly understand and effectively carry out procedures for interest reduction and waiver under SBV regulations.
The information below is based on the following sources:
(1) Official Letter No. 9651/NHNN-TD dated November 4, 2025;
(2) Official Letter No. 10328/NHNN-TD dated November 25, 2025;
(3) Decree No. 55/2015/ND-CP dated June 9, 2015, on credit policies for agricultural and rural development, amended and supplemented by Decree No. 116/2018/ND-CP dated September 7, 2018, Decree No. 156/2025/ND-CP dated June 16, 2025, and Circular No. 29/2025/TT-NHNN dated September 30, 2025, issued by SBV.
1. Forms of interest reduction and waiver
The SBV requires credit institutions to proactively implement support measures for customers affected by storms and floods. The main forms include:
- Temporary reduction of interest rates on existing loans (0.5%-2% per year for 3-6 months; specific reduction determined by each bank).
- Waiver or reduction of fees and penalties (late payment fees, debt restructuring fees, etc.) according to the policies of each credit institution.
- Debt rescheduling or extension of repayment terms to ease short-term repayment pressure.
- Debt write-off or waiver in cases of severe damage where repayment is impossible, subject to eligibility and approval by the credit institution.
- Provision of new loans at preferential interest rates to restore production and business operations.
2. Applicable areas, subjects, and conditions
2.1. Applicable areas
- These measures are implemented in central regions of Vietnam directly affected by storms and floods, as specified below:
- Official letter 9651/NHNN-TD: Ha Tinh, Quang Tri, Hue, Da Nang, Quang Ngai.
- Official letter 10328/NHNN-TD: Khanh Hoa, Gia Lai, Dak Lak, Lam Dong.
2.2. Subjects
- Individuals, households, businesses, and production facilities with outstanding loans at credit institutions who suffer damages due to natural disasters (property loss, halted production, loss of income).
2.3. Conditions
- Evidence of damage caused by natural disasters (official verification from local authorities, photos, damage reports).
- Existing valid loans at a credit institution with repayment ability genuinely affected by the disaster.
- Submission of a support request and related documents as required by the credit institution.
- Detailed conditions (e.g., damage criteria, specific interest reduction period) are applied by the credit institutions based on SBV official letters and internal regulations.
3. Procedure for debt rescheduling
3.1. Required documents
- Application for debt rescheduling/support (prepared by the customer).
- Official announcement of a natural disaster at the provincial level issued by the People’s Committee.
- Official confirmation of asset/loan damage caused by the disaster from the commune-level People’s Committee.
- Loan agreement, account statements, and relevant loan documents.
- Appraisal report from the credit branch/credit fund on damage, repayment capacity after support, production/business plan, and repayment plan.
Credit institutions may request additional documents according to internal regulations.
3.2. Implementation process
*Forms 01, 02, 03 issued with Decree No. 116/2018/ND-CP.
- Within 30 days from the provincial People’s Committee’s announcement of the disaster or the date of damage occurrence: The credit branch/credit fund, in coordination with the customer, prepares the debt rescheduling application and compiles the customer list (Form 01) to submit to the Department of Finance and the provincial SBV branch.
- Within 15 days after receiving the documents: The provincial SBV branch, in coordination with the Department of Finance, verifies the legality of the documents, consolidates, and submits the customer list to the provincial People’s Committee for confirmation, and prepares Form 02 report to SBV and the Ministry of Finance.
- Within 15 days from provincial confirmation: The credit branch reports to the head office for verification and consolidation; the head office compiles the customer list using Form 03 and submits to SBV and the Ministry of Finance for debt rescheduling consideration..
- Within 30 days after receiving complete documents: SBV, in coordination with the Ministry of Finance, decides on debt rescheduling or submits for Prime Minister approval.
“The above content is provided by DNP Viet Nam Law Firm for reference purposes only. For detailed, accurate, and tailored legal advice that meets your specific needs, please contact us using the information provided below.”
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