This is the new content currently being solicited for feedback in the Draft Decree amending and supplementing a number of regulations on credit policies serving the development of agriculture and rural areas (referred to as the Draft Decree).
Article table of contents
Differing from current regulations where the entities eligible to borrow from credit institutions include organizations and individuals, the Draft Decree now adjusts the eligibility to only individuals and legal entities. Consequently, entities such as households, business households, and cooperatives are no longer qualified to borrow credit for agricultural and rural development purposes.
This provision inherits from the Civil Code 2015: The parties to civil relations include only legal entities and individuals. Simultaneously, it aligns with the regulation of Circular 39/2016/TT-NHNN: Customers borrowing from credit institutions are legal entities and individuals.
However, households and business households can still borrow when needed if the borrower acts as an individual or the head of the family, or the head of the business household.
The adjustment of the eligible borrowing entities as mentioned above entails changes in the loan security mechanism for these entities. Specifically:
Individuals, farm owners, cooperatives, and union cooperatives are considered by credit institutions for unsecured loans according to the following borrowing limits:
- A maximum of 50 million VND for individuals residing outside rural areas with agricultural production and business activities;- A maximum of 100 million VND for individuals residing in rural areas; individuals residing outside rural areas participating in agricultural production linkage with a cooperative or enterprise;- A maximum of 200 million VND for individuals investing in industrial crops, perennial fruit trees;- A maximum of 300 million VND for individuals as heads of business households, private enterprise owners, or representatives of cooperatives to support the production and business activities of such business households, private enterprises, or cooperatives;- A maximum of 500 million VND for individuals engaged in aquaculture, offshore fishing with sales contracts with processing and direct export organizations;- A maximum of 1 billion VND for cooperatives, farm owners operating in rural areas or engaged in agricultural production and business activities;- A maximum of 2 billion VND for cooperatives engaged in aquaculture or offshore fishing, providing services for offshore fishing; farm owners engaged in aquaculture; union cooperatives operating in rural areas or engaged in agricultural production and business activities excluding subjects under point h, Clause 2 of this Article;- A maximum of 3 billion VND for union cooperatives engaged in aquaculture or offshore fishing, providing services for offshore fishing.
Individuals borrowing from credit institutions are exempt from the following fees:
- Fees for notarizing collateral property mortgage contracts at the contract notarization agency;- Fees for registering secured transactions at the secured transaction registration agency.
See detailed adjustment content in the Draft Decree amending and supplementing a number of articles of Decree 55/2015/ND-CP.
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