Loan Amount for Overseas Labor Export: What are the terms? What is the interest rate for loans for overseas labor export?
Who is eligible for loans to go abroad for labor export?
Based on Section 2 of Guidance 7886/NHCS-TDNN 2019, eligible subjects for loans to go abroad for labor export under a contract include:
- Workers from poor households as per the poverty standards stipulated by the Prime Minister of the Government of Vietnam from time to time;
- Workers from near-poor households as per the near-poverty standards stipulated by the Prime Minister of the Government of Vietnam from time to time;
- Workers who are ethnic minorities;
- Workers who are relatives of people with meritorious services to the revolution. Relatives of people with meritorious services to the revolution are confirmed by the commune People's Committee according to Form No. 4 issued together with Decree 74/2019/ND-CP.
- Workers whose land has been reclaimed, including:
+ Workers from families or individuals directly involved in agricultural production who have been allocated agricultural land by the State as per the regulations (except for households or individuals who are officials, workers of state-owned farms, state-owned forestry farms who have retired, invalids, or those who have resigned and receive benefits) when the State reclaims agricultural land and compensates in money for the reclaimed agricultural land area;
+ Workers from families or individuals when the State reclaims homestead land combined with business, services, and they have to relocate.
- Workers from poor districts who need to work abroad under a contract.
Loan amount for labor export abroad. What is the interest rate for loans to go abroad for labor export?
What are the conditions for getting a loan to go abroad for labor export?
Based on Section 4 of Guidance 7886/NHCS-TDNN 2019, the conditions to get a loan to go abroad for labor export include:
Eligible subjects must meet the following conditions:
- Have full civil act capacity;
- Legally reside in the locality;
- Have a need for a loan to work abroad under a contract, and have already signed a contract with an enterprise sending workers to work abroad;
- Have loan security as prescribed by law and by NHCSXH (if any);
- Additionally, the following subjects must meet specific conditions:
+ Workers whose land has been reclaimed must have a Land Reclamation Decision within 5 years from the date of the Land Reclamation Decision;
+ Workers from poor districts who need to work abroad under a contract must have permanent residence for at least 12 months in poor districts, and be accepted by the foreign party to work and have already signed a contract with an enterprise sending workers to work abroad.
What is the loan amount for labor export abroad? What is the interest rate for loans to go abroad for labor export?
Based on Sections 5, 6 of Guidance 7886/NHCS-TDNN 2019, the loan amount and interest rate for labor export abroad are regulated as follows:
Loan Amount:
The maximum loan amount is equal to 100% of the costs to go to work abroad under the contract signed between the worker and the enterprise sending workers abroad.
Loan Interest Rate:
- The preferential loan interest rate for workers going abroad under a contract is equal to the loan interest rate for poor households as stipulated by the Government of Vietnam from time to time (currently, the loan interest rate for poor households is 6.6% per year).
Specifically, workers from poor districts who need to work abroad under a contract and belong to poor households or ethnic minorities are eligible for loans with an interest rate equal to 50% of the loan interest rate for poor households stipulated by the Government of Vietnam from time to time.
- Overdue loan interest rate is 130% of the loan interest rate.
What are the documents and procedures for getting a loan to go abroad for labor export?
Based on Section 11 of Guidance 7886/NHCS-TDNN 2019, the documents and procedures for getting a loan to go abroad for labor export are regulated as follows:
Loan Documents:
Loan applicants must complete the Loan Application Form according to Form No. 01/LDNN and submit it along with the required documents:
- A certified copy of the ID card or citizen identification card, household registration book or temporary residence book;
- A certified copy of the valid passport of the worker;
- A certified copy of the contract signed between the worker and the enterprise sending workers abroad;
- The worker's authorization letter according to Form No. 03/LDNN;
- The wage transfer agreement of the worker for debt repayment and loan interest according to Form No. 07/LDNN (hereinafter referred to as the Agreement) if the worker's wages are managed by the enterprise sending workers abroad;
- For relatives of individuals with meritorious services to the revolution applying for a loan, a certified copy of the Confirmation Form No. 4 issued according to Decree 74/2019/ND-CP;
- For loan applicants whose land has been reclaimed according to Decision 63/2015/QD-TTg of the Prime Minister, a certified copy of the Land Reclamation Decision by the competent authority is required;
- Documents proving asset security in case the loan requires loan security as per regulations.
Loan Procedure:
Step 1: Submit loan application
Step 2: Bank reviews application
Within 10 working days from the date of receiving the complete loan application, the bank will inspect, verify, and assess the completeness, legality, and validity of the loan applicant and the loan documents.
If the application is not approved, the bank will send a notice stating the reason for refusal to the loan applicant.
If the application is approved, the bank will send a notice of loan approval results to the loan applicant.
Step 3: Both parties sign the loan agreement
The policy bank where the loan is provided and the loan applicant will establish a credit agreement; establish a loan security agreement and implement loan security measures (if any) as prescribed by law and bank regulations.
Step 4: Disburse the loan
Prior to loan disbursement, the applicant will be guided to open a payment deposit account at the lending bank.
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