Capital Needs Ineligible for Lending
Credit institutions must not provide loans for the following capital needs:
1. To carry out investment and business activities in sectors and trades prohibited from investment and business under the Law on Investment.
2. To pay expenses or meet financial needs related to investment and business activities in sectors and trades prohibited from investment and business under the Law on Investment, as well as other transactions and acts prohibited by law.
3. To purchase or use goods and services belonging to sectors and trades prohibited from investment and business under the Law on Investment.
4. To purchase gold bars.
5. To repay credit facilities granted by the same lending credit institution, except for loans used to pay loan interest arising during the construction period of a work, where such interest expenses are included in the total investment amount approved by competent authorities in accordance with the law.
6. To repay foreign loans (excluding foreign loans in the form of deferred payment for goods purchases) or credit facilities from other credit institutions, except for loans used for early repayment of an existing loan that fully meets the following conditions:
a) The loan term does not exceed the remaining term of the existing loan;
b) The existing loan has not been rescheduled.
7. To make deposits.
Legal basis: Clause 2, Article 1 of Circular No. 06/2023/TT-NHNN.
