WHEN SHOULD AN ELECTRONIC INVOICE BE ISSUED WHEN A CUSTOMER PAYES LOAN INTEREST EARLY UNDER THE CREDIT AGREEMENT?

When should an electronic invoice be issued when a customer pays loan interest early under the credit agreement? When does Decree 70 amending Decree 123 on invoices and documents take effect? How is the lending process for construction or home renovation and repair regulated? Let’s find out more with Pham Consult!

When should an electronic invoice be issued when a customer pays loan interest early under the credit agreement?

Pursuant to Point l, Clause 4, Article 9 of Decree 123/2020/ND-CP supplemented by Clause 6, Article 1 of Decree 70/2025/ND-CP, the time of invoice issuance is stipulated as follows:

Time of invoice issuance

4. Time of invoice issuance for some specific cases is as follows:
5. l) The time of invoice issuance for lending activities is determined according to the interest collection period in the credit contract between the credit institution and the borrowing customer, except in cases where the interest is not collected by the due date and the credit institution monitors off-balance sheet according to the provisions of law on credit, the time of invoice issuance is the time of collecting the loan interest from the customer. In case of early interest payment according to the credit contract, the time of invoice issuance is the time of early interest collection.

For foreign exchange agency activities, activities providing foreign currency receiving and payment services of economic organizations of credit institutions, the time of invoice issuance is the time of foreign currency exchange, the time of completion of foreign currency receiving and payment services.

Accordingly, when customers pay loan interest before the due date according to the credit contract, the electronic invoice is issued at the time of collecting interest before the due date.

When does Decree 70 amending Decree 123 on invoices and documents take effect?

Pursuant to Article 3 of Decree 70/2025/ND-CP, the following provisions are stipulated:

Effectiveness and responsibility for implementation

1. This Decree takes effect from June 1, 2025.
2. The Minister of Finance guides the implementation of Clauses 3, 6, 7, 11, 18, 37 and 38, Article 1 of this Decree and other cases according to management requirements.
3. Ministers, Heads of ministerial-level agencies, Heads of Government agencies, Chairmen of People’s Committees of provinces and centrally run cities and relevant organizations and individuals are responsible for implementing this Decree.

Thus, Decree 70 amending Decree 123 on invoices and documents takes effect from June 1, 2025.

How is the lending process for housing construction, renovation and repair regulated?

Based on the provisions of sub-section 15, Section III of Instruction 4546/HD-NHCS in 2024, the lending process for housing construction, renovation and repair is regulated as follows:

At the Savings and Loan Group (savings and loans)

Customers submit the documents specified in sections a, b, c, d, dd, point 14.1, clause 14 of this document to the Savings and Credit Group at the place of permanent residence. If the customer is not yet a member of the Savings and Credit Group, the Savings and Credit Group in the village or residential group (village, village, hamlet, village, village, village, bon, phum, soc… collectively referred to as village; residential group, residential area, block, quarter, hamlet, sub-area… collectively referred to as residential group) shall organize a meeting to admit additional members; hold a public review meeting under the supervision and witness of the Village Head or Head of the Residential Group and the representative of the socio-political organization receiving the trust at the commune level, then send the loan application with the minutes of the Savings and Credit Group meeting, the List of proposals for social housing loans according to Form No. 03/NƠXH to the People’s Committee at the commune level. At the Commune People’s Committee

– Based on the assigned capital plan targets and the documents sent by the Savings and Credit Groups, the Commune People’s Committee confirms the List of social housing loan proposals according to Form No. 03/NƠXH, then sends the Savings and Credit Group to the NHCSXH where the loan is made.

– In case the capital loan demand is greater than the assigned capital plan targets, the Commune People’s Committee organizes the consideration of priority for social housing loans for customers who are people with meritorious services to the revolution, relatives of martyrs, people with disabilities, women, After considering the priority for the above subjects to borrow capital, the remaining subjects organize a draw to prioritize borrowing capital. Then, the Commune People’s Committee confirms the List of social housing loan proposals according to Form No. 03/NƠXH for cases with priority consideration results and results after organizing the draw; The consideration of loan priority and the organization of the lottery must be carried out publicly, transparently, objectively, with the participation of customers and recorded in minutes kept at the People’s Committee at the commune level.

At the Social Policy Bank where the loan is made (the Social Policy Bank)

– Upon receiving the loan application sent by the Savings and Credit Group, the Social Policy Bank where the loan is made shall notify the customer according to Form No. 04/NƠXH. The officer assigned by the Director of the Social Policy Bank where the loan is made shall, within a maximum of 10 working days from the date of receipt of the complete application as prescribed, appraise the loan application. In case the loan application is not complete, legal, or valid, the appraiser shall request the customer to supplement it according to regulations. Based on the loan application, appraisal results, and Minutes of determining the value of the mortgaged property according to current regulations of the Social Policy Bank, the officer of the Social Policy Bank where the loan is made shall prepare an Appraisal Report according to Form No. 05/NƠXH.

– The assigned officer shall submit the Appraisal Report together with the loan application to the Head of the Planning – Credit Operations Department/Head of the Planning – Control Operations Team, then submit it to the Director of the Social Policy Bank where the loan is made for consideration and approval; the control and approval of the loan application shall take a maximum of 05 working days.

– The Social Policy Bank where the loan is made shall notify the result of the loan approval according to Form No. 06a/NƠXH or shall not agree to approve the loan according to Form No. 06b/NƠXH.

In case of loan approval, the Social Policy Bank where the loan is made shall establish a Credit Contract with the customer according to Form No. 07c/NƠXH; and the Mortgagor shall establish a Property Mortgage Contract with the regulations on loan security in the Social Policy Bank system and shall notarize and register security measures according to current regulations. The cost of notarization and registration of security measures shall be paid by the customer.

– Based on the credit contract signed between the customer and the lending bank, the customer opens a payment account at the lending bank (in case the payment account has not been opened at the lending bank). – After the loan application is completed, the officer assigned by the Director of the lending bank shall prepare a record of handover of the application between the credit department and the accounting department according to Form No. 13/NƠXH and hand over the entire application to the accounting department as a basis for disbursement and management.