Loan Methods for Individuals Who Have Completed Their Prison Sentences as Regulated from October 10, 2023
Decision 22/2023/QD-TTg regarding lending methods for individuals who have completed serving prison sentences: What are the regulations?
The lending methods for individuals who have completed serving prison sentences are stipulated in Article 4 of Decision 22/2023/QD-TTg.
Lending Methods
1. For individuals who have completed serving prison sentences
a) Implement lending methods through the borrower’s household. The household representative of the individual who has completed serving a prison sentence will be the loan applicant and will engage in transactions with the Social Policy Bank. In cases where the household does not have any members who are 18 years of age or older, or the remaining members are no longer able to work, or do not have full civil act capacity as prescribed by law, the individual who has completed serving the prison sentence will directly apply for the loan at the Social Policy Bank;
b) The Social Policy Bank at the lending location will carry out the lending through entrustment to socio-political organizations.
2. For production and business establishments
The Social Policy Bank at the lending location will lend directly.
Individuals who have completed serving prison sentences can apply for loans from the Social Policy Bank through their households.
The household representative of the individual who has completed serving a prison sentence will be the loan applicant and will engage in transactions with the Social Policy Bank.
In cases where the household does not have any members who are 18 years of age or older, or the remaining members are no longer able to work, or do not have full civil act capacity as prescribed by law, the individual who has completed serving the prison sentence will directly apply for the loan at the Social Policy Bank.
The Social Policy Bank at the lending location will carry out lending through entrustment to socio-political organizations.
Decision 22/2023/QD-TTg regarding lending methods for individuals who have completed serving prison sentences: What are the regulations? (Image from the Internet)
What is the purpose of using loan capital for individuals who have completed serving a prison sentence?
As stipulated in Article 5 of Decision 22/2023/QD-TTg, the purposes of using loan capital are as follows:
* For loans for vocational training
Costs for the education and living expenses of individuals who have completed serving a prison sentence during their study period at universities (or equivalent), colleges, intermediate professional schools, and vocational education establishments established and operating according to Vietnamese law. These costs include tuition fees, expenses for purchasing books and learning materials, and living, accommodation, and travel expenses.
* For loans for production, business, and job creation
Costs for implementing production, business, and job creation activities.
What are the stipulated loan amounts for individuals who have completed serving a prison sentence?
As stipulated in Article 6 of Decision 22/2023/QD-TTg, the loan amounts are as follows:
Loan Amount
1. For loans for vocational training
The maximum loan amount is 4 million VND/month/person who has completed serving a prison sentence.
2. For loans for production, business, and job creation
a) Individuals who have completed serving a prison sentence: The maximum loan amount is 100 million VND/person who has completed serving a prison sentence;
b) Production and business establishments: The maximum loan amount is 2 billion VND/project and not more than 100 million VND/worker at the production and business establishment.
The specific loan amounts for individuals who have completed serving a prison sentence are as follows:
* For loans for vocational training
- The maximum loan amount is 4 million VND/month/person who has completed serving a prison sentence.
* For loans for production, business, and job creation
- Individuals who have completed serving a prison sentence: The maximum loan amount is 100 million VND/person who has completed serving a prison sentence;- Production and business establishments: The maximum loan amount is 2 billion VND/project and not more than 100 million VND/worker at the production and business establishment.
How does Decision 22/2023/QD-TTg regulate the loan interest rates for individuals who have completed serving a prison sentence?
As stipulated in Article 9 of Decision 22/2023/QD-TTg, the loan interest rates for individuals who have completed serving a prison sentence are as follows:
Loan Interest Rates
1. The loan interest rate is the same as the loan interest rate for poor households stipulated for each period.
2. The overdue debt interest rate is 130% of the loan interest rate.
The loan interest rate for individuals who have completed serving a prison sentence is the same as the loan interest rate for poor households stipulated for each period.
Additionally, the overdue debt interest rate is 130% of the loan interest rate.
Moreover, individuals who have completed serving a prison sentence and apply for loans for vocational training and loans for production, business, and job creation are not required to provide loan security (clause 1 Article 10 of Decision 22/2023/QD-TTg).
For production and business establishments employing individuals who have completed serving a prison sentence and applying for loans over 100 million VND, loan security must be provided as stipulated by law and the Social Policy Bank regarding the assurance of loan obligations (clause 2 Article 10 of Decision 22/2023/QD-TTg).
Decision 22/2023/QD-TTg will take effect from October 10, 2023.
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