Crime of Usury in Civil Transactions
Any person who, in a civil transaction, lends money at an interest rate five times or more higher than the maximum interest rate prescribed in the Civil Code, thereby obtaining illicit gains from VND 30,000,000 to under VND 100,000,000, or who has already been administratively sanctioned for such act, or has been convicted of this crime, has not had his/her criminal record expunged but continues to reoffend, shall be subject to a fine of between VND 50,000,000 and VND 200,000,000 or to non-custodial reform for up to 03 years.
This provision is further interpreted as follows:
“Usury” means a case in which the lender lends money to the borrower at an interest rate five times or more higher than the maximum interest rate prescribed in Clause 1, Article 468 of the Civil Code.
Where the loan is provided in the form of property other than money, the value of such property must be converted into money at the time the loaned property is transferred for the purpose of determination.
Accordingly, Clause 1, Article 468 of the Civil Code provides: Where the parties have agreed on an interest rate, such agreed interest rate shall not exceed 20% per year of the loan amount, unless otherwise provided for by relevant laws. Based on actual conditions and upon the proposal of the Government, the Standing Committee of the National Assembly shall decide to adjust the above-mentioned interest rate and report to the National Assembly at the nearest session. Where the agreed interest rate exceeds the limit prescribed in this Clause, the excessive portion shall be invalid.
Where the offense results in illicit gains of VND 100,000,000 or more, the offender shall be subject to a fine of between VND 200,000,000 and VND 1,000,000,000 or to imprisonment for a term of 06 months to 03 years.
The offender may also be subject to a fine of between VND 30,000,000 and VND 100,000,000, a ban from holding certain positions, a ban from practicing certain professions, or a ban from performing certain jobs for a term of 01 to 05 years.
Legal grounds:
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Article 201 of the 2015 Criminal Code;
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Resolution No. 01/2021/NQ-HĐTP providing guidance on the application of Article 201 of the Criminal Code and on the adjudication of criminal cases concerning the crime of usury in civil transactions;
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Point i, Clause 2, Article 2 of the 2017 Law amending the Criminal Code;
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Clause 1, Article 468 of the 2015 Civil Code.
