Decision 12/2026/QD-TTg: Amending the SME Loan Guarantee Scheme at Commercial Banks
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Based on:Quyết định 12/2026/QĐ-TTg; Quyết định 03/2011/QĐ-TTg - Government Official Gazette
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The Prime Minister issued Decision 12/2026/QD-TTg amending the SME loan guarantee scheme at commercial banks. Key changes include: revised guarantee fees (500,000 VND application review fee per dossier and 0.5% per annum guarantee fee on guaranteed amount); clarified procedures for mandatory guaranteed loan obligations when the Vietnam Development Bank (VDB) has to honor a guarantee on behalf of an SME. The decision sets the mandatory loan interest rate at the state investment credit rate, with overdue interest capped at 150% of the in-term rate. VDB may waive or reduce interest for bankrupt or financially distressed borrowers, with no state budget interest subsidy in such cases. Critically, from the effective date of 15 May 2026, VDB ceases issuing new loan guarantees for SMEs under Decision 03/2011/QD-TTg. Previously signed contracts continue under their original terms, with the option to renegotiate interest rates and collateral requirements.
Decision 12/2026/QD-TTg dated 31 March 2026 by the Prime Minister
Key Amendments
1. Article 9 - Guarantee Fees (amended)
- Application review fee: 500,000 VND per dossier, payable when submitting guarantee application
- Loan guarantee fee: 0.5% per annum on the guaranteed principal amount
- VDB recognizes all collected fees as income
- VDB may waive guarantee fees for bankrupt or dissolved enterprises after full asset liquidation
2. Article 20 - Mandatory Guaranteed Loan Obligations (amended)
- After VDB honors a guarantee, borrower must sign a mandatory guaranteed loan contract
- Interest rate: equals VDB's state investment credit lending rate at contract signing date
- Overdue interest rate: maximum 150% of the in-term rate
- Repayment period: determined by VDB based on financial situation and repayment capacity
- VDB may waive or reduce interest; state budget will not subsidize interest in such cases
3. Article 21 - Risk Provision (amended) Follows VDB's financial management regime and credit risk resolution mechanism regulations.
4. Article 23 - Responsibilities (amended)
- VDB: full compliance, joint monitoring of loan use, periodic recovery monitoring
- Ministry of Finance: lead in developing and improving the guarantee scheme
- State Bank of Vietnam: provide average USD lending rate data within 15 working days
- Ministries: conduct inspection and oversight of VDB's guarantee activities
Transitional Provisions
- Existing mandatory loan contracts: continue under original terms; parties may renegotiate rates and collateral
- VND-denominated loans: adjust rate to current state investment credit rate
- USD-denominated loans: adjust to average USD lending rate of domestic commercial banks
Effective Date
- Effective 15 May 2026
- VDB ceases issuing new loan guarantees for SMEs from this date