Banks must support 12 months of salary when seizing the borrower's only home

People said that if savings deposits are taxed, money may flow to other areas such as real estate, gold, stocks... (Photo: Vietnam+)

Banks must deduct an amount equal to 12 months of minimum wage to support borrowers when seizing collateral that is their only residence.

This is the content provided in Decree No. 304/2025/ND-CP stipulating the conditions for collateral of bad debts to be seized, effective from December 1, 2025.

The Decree is designed in such a way that when seizing collateral assets that are the sole residence or the main or sole means of employment, the credit institution is responsible for deducting an amount of money so that the homeowner has the ability and resources to maintain life and ensure minimum living expenses.

Specifically, if the bank seizes the only confirmed and proven residence as prescribed in this Decree, the secured party shall deduct an amount (from the cost of handling the secured property) for the guarantor equal to 12 months' salary calculated at the minimum wage.

In case of seizure of the main or only working tool not formed from loan capital that has been confirmed and proven according to regulations, the bank shall deduct an amount of money for the guarantor equal to 6 months' salary, calculated according to the minimum wage.

According to the State Bank, this Decree is issued to ensure the balance of legitimate rights and interests of borrowers and lenders. The seizure of collateral for bad debts requires a balanced approach, minimizing the impact on people's daily life, production and work.

Source: https://baolamdong.vn/ngan-hang-phai-ho-tro-12-thang-luong-khi-thu-giu-nha-o-duy-nhat-cua-nguoi-vay-405922.html