Registration of foreign loan change is not simply an administrative procedure but also require close interaction between related parties. You shall contact the commercial bank where you have a bank account used for receiving loan amounts, the State Bank of Vietnam where the foreign loan application is approved and provide information about your compliance during the use of the loan and take some actions with the lender, etc. and do some legal procedures. This will ensure that foreign loan is adjusted to your financial situation, supporting you avoid unexpected risks. Hence, in order to be successful in changing foreign loan, you shall understand the important things regarding this process. Let’s find out more details in the article below.

1. Case that borrower shall register for loan change

Borrower shall perform procedure for registering loan change at the State Bank of Vietnam when there is any change in the information recorded in the loan registration confirmation document issued by the State Bank of Vietnam to the Borrower.

Accordingly, the borrower shall rely on the loan confirmation document (the result of the initial loan application dossier) to compare with the actual situation of the enterprise, in order to determine the change of such loan whether it is the content recorded on the confirmation or not. If the changes are those recorded in the confirmation, the borrower is required to perform the procedure for registration of changes to the foreign loan.

Some basic information on the State Bank of Vietnam’s confirmation document such as information on borrower, lender, related parties, loan purpose, loan amount, interest rate, security method, plan withdrawal, repayment plan, etc.

2. Case that borrower not have to perform procedure of applying for loan change

In case the actual plan for capital withdrawal, repayment and fee transfer changes within 10 days compared with the plan for capital withdrawal, repayment and fee transfer previously confirmed by the State Bank of Vietnam, the borrower is responsible for notifying the commercial bank or foreign bank branch where the borrower opens an account for foreign loan and repayment (hereinafter referred to as the commercial bank providing account services) to withdraw capital, repayment according to the changed plan; is not required to register change to foreign loan with the State Bank.

3. Procedure for registration of change in foreign loan

Step 1. Preparing the Loan Change Application:

– In case the borrower has declared loan change information on the Website before submitting the application: the borrower shall print the Application from the Website, sign and stamp it;

– In case the borrower does not declare loan change information on the Website before submitting the application: the borrower shall complete the Application form for foreign loan change according to the prescribed form.

Step 2. Submitting the application for registration of change of foreign loan, the time period for submission is 30 working days from the date the parties sign the change agreement, or before the time of implementation of the change (if not required the change agreement), the borrower completes the change of business information, etc.

Step 3. The State Bank shall issue a written confirmation or refusal for the registration of loan change, according to which:

– Within 12 working days from the date of receipt of the complete and valid dossier of the borrower in case the borrower has declared loan change information on the Website before submitting the change application, or;

– 15 working days from the date of receiving the borrower’s complete and valid dossier in case the borrower does not declare loan change information on the Website before submitting the change application.

4. List of application documents for changing foreign loan

– Application form for changing foreign loan according to regulations;

– The copies and Vietnamese translations of the change agreement related to the content borrower has registered for change;

– In case of change to increase the loan amount, change the purpose of using the loan for the undisbursed loan amount, the borrower shall add: an Investment Registration Certificate (for the loan to implement the project); Plans for using foreign loan (for loan to implement production and business plans); The report on the use of short-term foreign loan, etc;

– A written confirmation from the bank providing account services on the situation of capital withdrawal and repayment (principal and interest) up to the time of registration for changing loan in the case of registration for change of loan amount, plan of withdrawal capital, the repayment , or change the commercial bank providing account services.

In addition to the above documents, in some specific cases, the State Bank of Vietnam will ask you to provide other documents to prove the content of changing registration. Performing the procedure for changing foreign loan when there is any content on the written confirmation of the change is mandatory, except for some cases mentioned above. In the case you do not perform the correct procedure for changing foreign loan, you will lose some good opportunities to perform business or new investment projects. Therefore, to ensure that your financial situation is always controlled, and the foreign loan is best managed, the registration for a loan change is extremely crucial.

Time of writing: 29 March 2023

The article contains general information which is of reference value, in case you want to receive legal opinion on issues you need clarification on, please contact our Lawyer at info@cdlaf.vn.