Vietnam Central Bank raises small‑loan cap to 400 million dong

The State Bank of Vietnam issued Circular 29/2026, amending Circular 39/2016, to increase the ceiling for “small‑value” loans from 100 million dong to 400 million dong. The change takes effect on 15 August 2026 and applies to all credit institutions, including foreign bank branches. Loans up to the new limit no longer require borrowers to provide proof of income or a detailed use‑of‑funds plan.

The circular also introduces new procedures for overdue loans, mandating that lenders recover principal before interest, and sets electronic‑lending safeguards, such as customer‑specific loan‑balance caps and enhanced identity verification. The regulator said the revision reflects rising consumer demand, higher living costs, and the growth of fintech services, aiming to improve access to credit for households and micro‑enterprises.