Methods of Lending for Workers from Poor Households to Work Abroad under Contract
Loan Method for Workers from Poor Households Working Abroad Under Contract
According to Section 10 Guidance 7886/NHCS-TDNN 2019, the loan method is stipulated as follows:
Loan Method
NHCSXH lends directly to workers going abroad under contract at the provincial branch headquarters or district branch headquarters where the worker legally resides (hereinafter referred to as NHCSXH lending location).
Therefore, the loan method for workers from poor households working abroad under contract is that the Social Policy Bank lends directly at the NHCSXH provincial or district branch headquarters where the worker legally resides.
Loan Method for Workers from Poor Households Working Abroad Under Contract
Purpose of the Loan for Workers from Poor Households Working Abroad Under Contract
Based on Section 9 Guidance 7886/NHCS-TDNN 2019, the purpose of the loan is defined as follows:
Purpose of Loan Use
The loan is used to pay for expenses to work abroad according to the contract signed between the worker and the enterprise sending workers abroad.
Therefore, the purpose of the loan for workers from poor households working abroad under contract is to cover the expenses for working abroad as recorded in the contract signed between the worker and the enterprise.
Loan Procedure for Workers from Poor Households Working Abroad Under Contract
Based on Section 11 Guidance 7886/NHCS-TDNN 2019, the loan procedure is specifically defined as follows:
Loan Procedure
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11.2. Loan Process:
Within 10 working days from receiving the completed loan application, the Director of NHCSXH at the lending location assigns a credit officer to:
- Check, compare, and verify the completeness, legality, and validity of the borrower and the loan application, and simultaneously prepare an Appraisal Report (Form 02/LDNN) to be submitted to the Head of Planning - Operations / Head of Planning - Credit Operations for review, then submit to the Director for approval of the loan application.
+ If not approved, the NHCSXH at the lending location will notify the borrower of the refusal using Form 04a/LDNN, clearly stating the reason for refusal.
+ If approved, the NHCSXH at the lending location will send a loan approval notification using Form 04/LDNN to the borrower.
- The NHCSXH at the lending location prepares a Credit Contract (Form 05/LDNN); prepares a Loan Security Contract and implements loan security measures (if any) according to legal regulations and NHCSXH policies.
- The appraisal report and the contracts mentioned above are prepared in accordance with the loan object and type of collateral but must comply with the contents of the sample guidance in this document and be typewritten.
- After the loan application is completed, it is handed over to the accounting department as a basis for disbursing the loan, with 2 copies of the Appraisal Report (Form 02/LDNN), one stored in the credit department, and one stored in the accounting department.
- Before disbursing the loan, the NHCSXH at the lending location: receives the loan security and related documents (if any) according to current regulations of NHCSXH; guides the borrower to open a payment deposit account at NHCSXH at the lending location. The opening of a payment deposit account is done according to current NHCSXH regulations.
The loan procedure for workers from poor households working abroad under contract is carried out through the following steps:
Step 1:
Within 10 working days from receiving the completed loan application, the Director of the Social Policy Bank (NHCSXH) at the lending location assigns a credit officer to:
- Check, compare, verify the completeness, legality, and validity of the borrower and the loan application, and simultaneously prepare an Appraisal Report (Form 02/LDNN) to be submitted to the Head of Planning - Operations / Head of Planning - Credit Operations for review, then submit to the Director for approval of the loan application.
+ If not approved, the NHCSXH at the lending location will notify the borrower of the refusal in writing, clearly stating the reason for refusal.
+ If approved, the NHCSXH at the lending location will send a loan approval notification using Form 04/LDNN to the borrower.
- After the loan application is completed, it is handed over to the accounting department, with the Appraisal Report having one copy stored in the credit department and one copy stored in the accounting department.
Step 2:
- Before disbursing the loan, the NHCSXH at the lending location: receives loan security documents and related papers (if any);
Guides the borrower to open a payment deposit account at NHCSXH at the lending location.
Opening a payment deposit account is done according to current NHCSXH regulations.
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