Title: How Much Can Individuals Who Have Completed Their Prison Sentences Borrow for Business? What is the Term for Business Loans for Individuals Who Have Completed Their Prison Sentences?
Maximum Loan Amount for Former Inmates to Start a Business
According to the provisions of Article 6 of Decision 22/2023/QD-TTg, the Prime Minister of the Government of Vietnam stipulates the loan amount for former inmates as follows:
Loan Amount
1. For loans to vocational training
The maximum loan amount is VND 4 million per month per former inmate.
2. For loans to produce, do business, and create jobs
a) Former inmates: The maximum loan amount is VND 100 million per former inmate;
b) Business establishments: The maximum loan amount is VND 2 billion per project and not more than VND 100 million per employee at the business establishment.
Thus, according to the provisions mentioned above, former inmates can borrow up to VND 100,000,000 per person for business purposes.
How much can former inmates borrow to start a business? What is the loan term for former inmates to start a business? (Image from the internet)
Loan Term for Former Inmates to Start a Business
According to the provisions of Clause 2, Article 8 of Decision 22/2023/QD-TTg, the Prime Minister of the Government of Vietnam stipulates the loan term for former inmates as follows:
Loan Term
1. For loans to vocational training
a) The loan term is the period from the day the former inmate starts receiving the loan until the debt (principal and interest) is fully repaid. The loan term includes the disbursement period and the repayment period;
b) The disbursement period is from the day the former inmate receives the first loan disbursement until the end of the course, including the period when the former inmate is allowed to take a leave of absence by the vocational training institution with their academic results preserved (if any);
c) The repayment period is divided into repayment periods as prescribed by the Social Policy Bank, as follows:
For training programs with a duration of up to one year, the maximum repayment period is twice the disbursement period.
For other training programs, the maximum repayment period is equal to the disbursement period.
2. For loans to produce, do business, and create jobs
The maximum loan term is 120 months. The specific loan term will be determined by the Social Policy Bank based on the capital source, the production and business cycle, and the borrowing client's repayment ability, in agreement with the borrowing client.
The maximum loan term for former inmates to start a business is 120 months. The specific loan term will be determined by the Social Policy Bank based on the capital source, the production and business cycle, and the borrowing client's repayment ability, in agreement with the borrowing client.
Loan Methods for Former Inmates
According to the provisions of Clause 1, Article 4 of Decision 22/2023/QD-TTg, the loan methods are stipulated as follows:
Loan Methods
1. For former inmates
a) Loans are made through the family. The family representative of the former inmate is the one who signs for the loan and conducts transactions with the Social Policy Bank. If there are no remaining family members aged 18 or older, or if the remaining members are unable to work or lack full civil legal capacity as prescribed by law, the former inmate may directly sign for the loan at the Social Policy Bank;
b) The Social Policy Bank providing the loan will implement the loan through the assignment to socio-political organizations.
2. For business establishments
The Social Policy Bank providing the loan will implement direct loans.
Thus, according to the provisions mentioned above, the loan methods for former inmates are regulated as follows:
- Former inmates will obtain loans through the family. The family representative of the former inmate will sign for the loan and transact with the Social Policy Bank. If there are no family members aged 18 or older, or if the remaining members are unable to work or lack full civil legal capacity as prescribed by law, the former inmate may directly sign for the loan at the Social Policy Bank.
- The Social Policy Bank providing the loan will implement the loan through the assignment to socio-political organizations.
Decision 22/2023/QD-TTg will take effect from October 10, 2023.
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