What conditions must businesses employing former prisoners meet to be eligible for Social Policy Bank loans?
Is it true that business establishments employing individuals who have completed their prison sentences do not have to secure loans under 100 million VND?
According to Article 10 of Decision 22/2023/QD-TTg on loan security:
Loan Security
1. Individuals who have completed their prison sentences and are borrowing funds for vocational training, production, business, and job creation do not need to secure their loans.
2. Business establishments employing individuals who have completed their prison sentences and are borrowing funds above 100 million VND must secure their loans in accordance with the law and the Social Policy Bank's regulations on ensuring loan obligations.
Clause 2, Article 10 of Decision 22/2023/QD-TTg stipulates that business establishments employing individuals who have completed their prison sentences and are borrowing funds above 100 million VND must secure their loans as per the law and the Social Policy Bank's regulations on securing loan obligations.
What conditions must business establishments employing persons who have completed their prison sentences fulfill to borrow from the Social Policy Bank?
What conditions must business establishments employing persons who have completed their prison sentences fulfill to borrow from the Social Policy Bank?
Article 3 of Decision 22/2023/QD-TTg stipulates the subjects and conditions for borrowing:
Subjects and Conditions for Borrowing
The subjects and conditions for borrowing include:
1. Subjects for Borrowing
a) Individuals who have completed their prison sentences, including those who have completed their prison term and have been issued a certificate of completion according to the Law on Criminal Judgment Execution, and those who have been pardoned and issued a certificate of pardon according to the Law on Amnesty;
b) Business establishments include small and medium enterprises, cooperatives, cooperative groups, and business households employing individuals who have completed their prison sentences.
2. Conditions for Borrowing
a) Individuals who have completed their prison sentences: Have a need for loans; are listed among those who have completed their prison sentences and reside in the local area, comply well with the law, do not engage in social evils, as documented by the Commune Police and certified by the Commune People's Committee according to Form No. 01 attached to this Decision. The time from completion of the prison sentence to the time of borrowing should be a maximum of 5 years;
b) Business establishments: Established and operating legally as per the law; employing at least 10% of their total workforce as individuals who have completed their prison sentences meeting the conditions stated in point a, and signing labor contracts as per labor law; have a borrowing plan certified by the Commune People's Committee where the plan is implemented according to Form No. 02 attached to this Decision.
3. Individuals and business establishments specified in clauses 1 and 2 of this Article should not have any remaining debts with the Social Policy Bank from other credit programs with the same purpose of using loan funds for vocational training, production, business, and job creation as per the law.
Thus, per the above regulations, business establishments employing individuals who have completed their prison sentences need to meet the following conditions to borrow funds:
- Established and operating legally as per the law.- Employing at least 10% of their total workforce as individuals who have completed their prison sentences meeting the conditions stated in point a and signing labor contracts as per labor law.- Have a borrowing plan certified by the Commune People's Committee where the plan is implemented according to Form No. 02 attached to Decision 22/2023/QD-TTg.- Business establishments as specified in clause 2, Article 3 of Decision 22/2023/QD-TTg should not have any remaining debts with the Social Policy Bank from other credit programs with the same purpose of using loan funds for vocational training, production, business, and job creation as per the law.
What is the loan method for business establishments employing individuals who have completed their prison sentences?
Article 4 of Decision 22/2023/QD-TTg stipulates the loan method as follows:
Loan Method
1. For individuals who have completed their prison sentences
a) Loans are provided through households. The household representative of the individual who has completed their prison sentence is the signatory for the loan and transactions with the Social Policy Bank. In cases where the household has no members of legal age (18 years and older) or remaining members are incapacitated or lack full civil act capacity as per the law, the individual who has completed their prison sentence will directly sign for the loan with the Social Policy Bank;
b) The Social Policy Bank at the lending location carries out loans via delegation to socio-political organizations.
2. For business establishments
The Social Policy Bank at the lending location carries out direct loans.
The Social Policy Bank at the lending location carries out direct loans.
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