Article 6. Interest rate, method of interest calculation and interest collection

1.     Interest rate and method of credit card interest calculation:

a)     The interest rate applicable to the credit card’s outstanding balance under the Contract shall be complied with interest rate schedule released by VPBank from time to time, which shall be publicly published on Timo website and Timo Application. Depending on each type of credit card, the interest rate can be adjusted in accordance with the market, monetary policy and interest rate of the State Bank of Vietnam (SBV). The adjusted interest rate is calculated with following formula: Adjusted interest rate is equal to (=) Applicable interest rate as of adjustment date plus (+) specific interest rate (released on VPBank’s official website by VPBank from time to time). The Cardholder is notified as prescribed in case the applicable interest rate is adjusted. The specific interest rate stated on the statement is delivered to the Cardholder.

b)     The method of interest calculation for due interest, overdue interest on principal shall be described as follows:

(i)      Interest is calculated on a one-year basis by 365 days. The interest of a statement period is calculated as follows:

 

Interest amount  =	∑ (Actual balance  x  Number of days maintaining actual balance x Interest rate)
	365

 

        Where:

–    Actual balance: Refers to the balance as of the final interest day of the due principal outstanding balance, overdue principal outstanding balance that the Cardholder has to pay to VPBank is used to calculate the interest as agreed in the Contract and the regulations of the laws;

–     Number of days maintaining actual balance: Refers to the number of days that the actual balance at the end of each day is not changed;

–     Interest rate: Refers to due interest rate, overdue interest rate as specified in the Contract and related documents. Interest rate is calculated by % on a yearly basis by 365 days and by the method of “calculating the first day, leaving the last day of the interest period”.

–    Interest period and time for determining balance for interest calculation: The interest period shall be determined since the date of facility disbursement till the end of the consecutive day before all outstanding balances are successfully paid to VPBank and balance for interest calculation is calculated at the end of each day during the interest period where, the date of facility disbursement is determined as follows:

✓   For cash withdrawal transactions: The withdrawal date is updated to VPBank’s card management system;

✓   For payment transaction of goods and services: The payment date of goods and services is posted to VPBank’s card management system.

(ii)  If the term since the Cardholder receives the facility disbursement until the amount disbursed by VPBank is paid is less than one day, the Parties agree that the interest period and the number of days maintaining actual balance for interest calculation purposes is one (01) day, the actual balance is the balance at the end of the day in the interest period or the balance as of loan repayment date whichever comes first.

c)     The due interest rate as specified at Item a) Clause 1 of this Article shall be applied to calculate interest in accordance with interest calculation method as prescribed at Item b) Clause 1 of this Article, which is equal to the interest rate of the corresponding year (convertible interest rate) under the applicable interest method:

(i)  The interest period is determined from the following day when the loan is disbursed until the end of the day that all outstanding balances are successfully paid to VPBank; and

(ii)  The actual balance for interest calculation is the opening balance of interest date

For purpose of clarification, this convertible interest rate is not applied to calculate interest under the interest calculation method as stipulated in Item b, Clause 1 of this Article.

2.     Interest collection cases:

a)   Where cash withdrawal or cash advance is initiated by the Cardholder: The Cardholder shall bear interest on the amount withdrawn/advanced and withdrawal fees (if any) until all debts are paid to VPBank. The interest from the transaction date to the first statement date shall be shown on the statement of the same period. If the Cardholder fails to pay or pays part of the outstanding balance withdrawn/advanced in the period (including interest and fee), the remaining outstanding balance (principal, interest, and fee) shall be assumed to apply interest as prescribed herein until it is fully paid and it shall be shown on the Statement of the next period.

b)  Where payment transactions of goods and services is conducted by the Cardholder:

(i)  If full outstanding balance on the statement (including the balance of the previous period, balance of cash withdrawal and payment for goods, services, interest, fee of such statement period) is paid before or on due date, VPBank will not collect interest on the entire payment transaction of goods and services in such statement period;

(ii)  If the Cardholder fails to pay or pay only a part of the outstanding balance at the end of the statement period (including the balance of the previous period, balance of cash withdrawal and payment for goods, services, interest, and fee of such statement period) or make loan repayment which is at least the Minimum Payment, interest shall be charged on all payment transactions for goods and services in the statement period, unpaid transactions/outstanding remaining balance will continue to be charged until it is paid and will be reflected in the next statement period.

c)  Reconciliation transaction: Interest for reconciliation transactions unpaid by the Cardholder shall also be calculated on the principle of cash advance/withdrawal transactions and payment transactions for goods and services as specified at Items a), b) of this Clause and the interest calculation method as prescribed at Item b) Clause 1 of this Article. Interest shall be refunded to the Cardholder for the transactions with correct complaint and reconciliation.

3.     Overdue interest rate and default fees:

a)    If the Cardholder fails to make Minimum Payment within 60 working days since the due date, the unpaid Minimum Payment shall be applied with default fee and overdue interest of 150% of applicable term interest rate. The remaining outstanding balance after deducting the Minimum Payment is still applied with the applicable term interest rate.

b)    If the Cardholder fails to make full Minimum Payment upon 60 days since the first due date, the whole unpaid outstanding balance shall be applied with overdue interest rate of 150% of the applicable term interest rate.

c)     Additionally, VPBank shall be further paid with default fee as prescribed by VPBank from time to time.

4.    The Client agrees that all timely unpaid fees, penalties (if any) incurred during Credit Card is used by the Cardholder shall be included in the Credit Card’s outstanding balance. The interest rate applied to this outstanding balance shall be complied with this Article.