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Households in disadvantaged areas eligible for getting loans up to VND100 million |
Deputy Prime Minister Le Minh Khai has just signed the Decision 17/2023/QD-TTg amending and supplementing a number of articles of the Decision No. 31/2007/QD-TTg on credit for production and business households in underprivileged districts. The new decision will take effect from August 8, 2023.
Accordingly, households including small farm business households and those families have production and business activities in the fields that are not prohibited by the regulations in disadvantaged areas can borrow capital as prescribed by law.
According to the Decision 17/2023/QD-TTg, borrowers must not poor households, near-poor households and households that have just escaped poverty according to the Prime Minister's Decision.
At the same time, borrowers do not have outstanding loans at the Bank for Social Policies for programs such as the job creation loan program, job maintenance and expansion in accordance with the law on policies for employment support and the National Employment Fund; other credit and loan programs for households to carry out production and business activities as prescribed by law.
In addition to the above conditions, according to the current regulations (or the Decision 31/2007), borrowers must have a production and business project or plan approved by local people's committees where the project or production plan is implemented. Borrowers must have fully been aware of their acts and they must legally reside in the place where the project or production and business plan is implemented.
What is noteworthy is that the new regulation has raised lending levels and reduced interest rates. Specifically, households can borrow a maximum of VND100 million a person instead of the current maximum of VND30 million a person with an interest rate of 9 percent per year instead of 10.8 percent a year as present.
The Decision No. 17/2023 also stipulates that disadvantaged areas are entitled to the credit policy for production and business households including communes, wards and towns specified in the list of commune-level administrative units in disadvantaged areas promulgated by the Prime Minister for each period.
Inhabitants in island districts in the list of communes with special difficulties in flatlands, coastal areas and islands promulgated by the Prime Minister for each period and villagers in the list of villages with special difficulties in ethnic minority and mountainous areas promulgated by competent authorities for each period are also entitled to the credit policy for production and business households.
