Which Workers Are Eligible for Loans to Work Abroad Under Contract from the Vietnam Bank for Social Policies?
Which workers are eligible to borrow funds for overseas employment contracts from the Social Policy Bank?
According to Section 2 of Guidance 7886/NHCS-TDNN of 2019 regarding which workers are eligible to borrow funds for overseas employment contracts from the Social Policy Bank, it includes:
- Workers belonging to poor households as defined by the Prime Minister of the Government of Vietnam from time to time;
- Workers belonging to near-poor households as defined by the Prime Minister of the Government of Vietnam from time to time;
- Workers who are ethnic minorities;
- Workers who are relatives of persons with meritorious services to the revolution. Relatives of persons with meritorious services to the revolution are confirmed by the commune People's Committee according to Form 4 issued with Decree 74/2019/ND-CP.
- Workers whose land is reclaimed, including:
+ Workers from households or individuals directly engaged in agricultural production that have been allocated agricultural land by the State (excluding cases where the household or individual is a retired, incapacitated, or terminated employee of a state-owned farm or forest enterprise that enjoys benefits) when the State reclaims agricultural land and compensates them with money for the reclaimed agricultural land area;
+ Workers from households or individuals when the State reclaims homestead land combined with business and services, requiring them to relocate.
- Workers in poor districts who need to go work overseas under contract.
Which workers are eligible to borrow funds for overseas employment contracts from the Social Policy Bank?
What are the conditions for workers to borrow funds for overseas employment contracts from the Social Policy Bank?
According to Section 4 of Guidance 7886/NHCS-TDNN of 2019 regarding the specific conditions for lending as follows:
Lending Conditions
Borrowers must meet the following conditions:
4.1. Have full civil capacity;
4.2. Legally reside in the locality;
4.3. Have the need to borrow funds to work overseas under contract, have signed a contract with an enterprise that sends workers abroad;
4.4. Provide loan guarantees as prescribed by law and the Social Policy Bank (if any);
4.5. The following subjects require additional conditions:
- The subject specified at Point 2.5, Clause 2 of this document must have a land reclamation decision within 5 years from the date of the land reclamation decision;
- The subject specified at Point 2.6, Clause 2 of this document must have had permanent residence registration for 12 months or more in poor districts, have been accepted by the foreign country to work, and have signed a contract with an enterprise that sends workers abroad.
Thus, according to the above regulations, the conditions for workers to borrow funds for overseas employment contracts from the Social Policy Bank include:
- Have full civil capacity.
- Legally reside in the locality.
- Have the need to borrow funds to work overseas under contract, and have signed a contract with an enterprise that sends workers abroad.
- Provide loan guarantees as prescribed by law and the Social Policy Bank (if any).
How much financial support can workers get for overseas employment contracts from the Social Policy Bank?
According to Section 5 of Guidance 7886/NHCS-TDNN of 2019 regarding the specific lending amount as follows:
Lending Amount
The maximum loan amount is equal to 100% of the cost of working overseas under the signed contract between the worker and the enterprise sending workers abroad.
Thus, according to the above regulations, workers going to work overseas under contract are supported with a maximum loan amount equal to 100% of the cost of working overseas under the contract signed between the worker and the enterprise sending workers abroad from the Social Policy Bank.
What is the loan interest rate from the Social Policy Bank for workers going overseas under contract?
According to Article 6 of Guidance 7886/NHCS-TDNN of 2019 regarding specific loan interest rates as follows:
Loan Interest Rates
6.1. Preferential loan interest rates for workers going to work overseas under contract are equal to loan interest rates for poor households as specified by the Government of Vietnam from time to time (currently, the loan interest rate for poor households is 6.6% per year). Specifically, the subject stipulated at Point 2.6, Clause 2 of this document, being workers from poor households or ethnic minorities, are eligible for loans at an interest rate equal to 50% of the loan interest rate for poor households as specified by the Government of Vietnam from time to time.
6.2. The overdue debt interest rate is equal to 130% of the loan interest rate.
Thus, according to the above regulations, the loan interest rate for workers going to work overseas under contract is:
- For workers going to work overseas under contract, the interest rate is equal to the loan interest rate for poor households, which is 6.6% per year.
- Specifically, the subject being workers in poor districts who need to go work overseas under contract, if they are from poor households or ethnic minorities, they are eligible for loans at an interest rate equal to 50% of the loan interest rate for poor households.
- The overdue debt interest rate is 130% of the loan interest rate.
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