What are the conditions for loan borrowing from the National Employment Fund of Vietnam? What are the regulations on minimum loan amounts from the National Employment Fund of Vietnam?
- What are the provisions and the sources forming the National Employment Fund of Vietnam?
- Who are eligible borrowers of loans from the National Employment Fund of Vietnam?
- What are the conditions for loan borrowing from the National Employment Fund of Vietnam?
- What are the regulations on minimum loan amounts from the National Employment Fund of Vietnam?
What are the provisions and the sources forming the National Employment Fund of Vietnam?
According to the provisions of Article 10 of the Law on Employment 2013, the State shall provide credit incentives from the National Employment Fund and other credit sources to support employment creation and maintain and expand employment. .
Accordingly, the sources forming the National Employment Fund of Vietnam are specified in Article 11 of the Law on Employment 2013, including:
- State budget;
- Supporting sources of domestic and foreign organizations and individuals;
- Other lawful sources.
What are the conditions for loan borrowing from the National Employment Fund of Vietnam? What are the regulations on minimum loan amounts from the National Employment Fund of Vietnam?
Who are eligible borrowers of loans from the National Employment Fund of Vietnam?
According to the provisions of Article 12 of the Law on Employment 2013, regulations on loan borrowers are as follows:
Borrowers of loans from the National Employment Fund
1. Eligible borrowers of loans from the National Employment Fund include:
a/ Small- and medium-sized enterprises, cooperatives, cooperative groups and business households;
b/ Workers.
2. The entities defined in Clause 1 of this Article that fall in the cases below may take loans from the National Employment Fund at lower interest rates:
a/ Small- and medium-sized enterprises, cooperatives, cooperative groups and business households that employ many people with disabilities or ethnic minority people;
b/ Ethnic minority people who are living in areas with extremely difficult socio-economic conditions, and people with disabilities.
In Clause 2, Article 23 of Decree 61/2015/ND-CP, small and medium-sized enterprises, cooperatives, artels or business households (hereinafter referred to as business entities) that employ many disabled people or ethnics, in particular:
- The business entity employing many disabled employees means that the number of disabled employees accounts for at least 30% of the total number of employees;
- The business entity employing many ethnic employees means that the number of ethnic employees accounts for at least 30% of the total number of employees;
- The business entity employing many disabled and ethnic employees means that the number of disabled and ethnic employees accounts for at least 30% of the total number of employees.
Thus, the eligible borrowers of loans from the National Employment Fund of Vietnam include:
- Small- and medium-sized enterprises, cooperatives, cooperative groups and business households;
- Workers.
What are the conditions for loan borrowing from the National Employment Fund of Vietnam?
Article 13 of the Law on Employment 2013 stipulates as follows:
Conditions for loan borrowing
1. The entities defined at Point a, Clause 1, Article 12 of this Law may take loans from the National Employment Fund when fully meeting the following conditions:
a/ Having a loan-borrowing project that is feasible in the locality, suits their production and business lines and creates more stable jobs;
b/ Having a loan-borrowing project certified by a competent agency or organization in the locality where the project is implemented;
c/ Having loan collateral.
2. The entities specified at Point b, Clause 1, Article 12 of this Law may take loans from the National Employment Fund when fully meeting the following conditions:
a/ Having full civil act capacity;
b/ Wishing to take loans to create employment for themselves or attract more workers, as certified by a competent agency or organization in the locality where the project is implemented;
c/ Lawfully residing in the locality where the project is implemented.
3. The Government shall prescribe loan levels, duration and interest rates, the order and procedures for borrowing loans, and loan collateral conditions.
Accordingly, the conditions for loan borrowing from the National Employment Fund of Vietnam are specifically as follows:
- Small- and medium-sized enterprises, cooperatives, cooperative groups and business households can borrow capital from the National Employment Fund when they meet the following conditions:
+ Having a loan-borrowing project that is feasible in the locality, suits their production and business lines and creates more stable jobs;
+ Having a loan-borrowing project certified by a competent agency or organization in the locality where the project is implemented;
+ Having loan collateral.
- Employees can borrow capital from the National Employment Fund when they meet the following conditions:
+ Having full civil act capacity;
+ Wishing to take loans to create employment for themselves or attract more workers, as certified by a competent agency or organization in the locality where the project is implemented;
+ Lawfully residing in the locality where the project is implemented.
What are the regulations on minimum loan amounts from the National Employment Fund of Vietnam?
According to Clause 2, Article 1 of Decree 74/2019/ND-CP amending Article 24 of Decree 61/2015/ND-CP, regulations on maximum loan amounts for each case, specifically as follows:
- The maximum loan amount granted to a business entity is VND 02 billion/project but shall not exceed VND 100 million/employee benefiting employment creation, maintenance and development policies.
- The maximum loan amount granted to each eligible employee is VND 100 million.
- The specific loan amount shall be subject to the consideration and agreement between Vietnam Bank for Social Policies (VBSP) and the borrower according to fund sources, business cycle and solvency of that borrower
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