Procedure for Lending to Workers from Poor Households to Work Abroad under Contract
How is the lending method for impoverished workers going abroad under contract?
According to Section 10 of Guidance 7886/NHCS-TDNN in 2019, the lending method is stipulated as follows:
Lending Method
The Vietnam Bank for Social Policies (VBSP) provides direct loans to workers going abroad under contracts at the provincial branches or district branches of VBSP where the workers reside legally (hereinafter referred to as VBSP lending branches).
Thus, the lending method for impoverished workers going abroad under contract is that the Vietnam Bank for Social Policies extends direct loans at the provincial branches or district branches of VBSP where the workers have legal residency.
Loan process for impoverished workers going abroad under contract
What is the purpose of loan use for impoverished workers going abroad under contract?
Pursuant to Section 9 of Guidance 7886/NHCS-TDNN in 2019, the purpose of loan use is stipulated as follows:
Purpose of Loan Use
The loans are used to pay the expenses for working abroad as stipulated in the contract signed between the worker and the enterprise arranging the worker’s overseas employment.
Therefore, the purpose of loan use for impoverished workers going abroad under contract is to cover the expenses for working abroad as specified in the contract signed between the worker and the enterprise.
What is the lending process for impoverished workers going abroad under contract?
Pursuant to Section 11 of Guidance 7886/NHCS-TDNN in 2019, the specific procedures and lending process are stipulated as follows:
Procedures and Lending Process
...
11.2. Lending Process:
Within 10 working days from the date of receiving the complete loan application, the Director of the VBSP lending branch assigns a credit officer to:
- Verify, compare, and assess the completeness, legality, and validity of the loan applicant, loan application, and concurrently prepare an Appraisal Report (Form 02/LDNN) for submission to the Head of Planning - Business Department/Team Leader of Planning - Credit Business for review, then submit to the Director for loan approval.
+ If not approved, the VBSP lending branch notifies the applicant of the refusal using Form 04a/LDNN, clearly stating the reason for refusal.
+ If approved, the VBSP lending branch sends a Loan Approval Notification (Form 04/LDNN) to the loan applicant.
- The VBSP lending branch and the loan applicant sign the Credit Contract (Form 05/LDNN); create a Loan Security Contract and execute the loan security measures (if any) according to the law and VBSP regulations.
- The Appraisal Report and the contracts mentioned above are created in line with each loan applicant and security asset type but must follow the content guiding forms in this document and be typed.
- After the loan application is completed, it is handed over to the accounting department as the basis for loan disbursement to the applicant, wherein the Appraisal Report is made in 02 copies according to Form 02/LDNN, 01 copy kept at the credit department, 01 copy kept at the accounting department.
- Before disbursing the loan, the VBSP lending branch: files the loan security documents and relevant loan security papers (if any) into the current VBSP regulations; guides the loan applicant to open a payment deposit account at the VBSP lending branch. The opening of a payment deposit account is conducted following the current regulations of VBSP.
The lending process for impoverished workers going abroad under contract is carried out through the following steps:
Step 1:
Within 10 working days from the date of receiving the complete loan application, the Director of the Vietnam Bank for Social Policies (VBSP) lending branch assigns a credit officer to:
- Verify, compare, and assess the completeness, legality, and validity of the loan applicant and loan application, and concurrently prepare an Appraisal Report (Form 02/LDNN) for submission to the Head of Planning - Business Department/Team Leader of Planning - Credit Business for review, then submit to the Director for loan approval.
+ If not approved, the VBSP lending branch notifies the applicant of the refusal by formal written notice specifying the reasons for refusal.
+ If approved, the VBSP lending branch sends a Loan Approval Notification (Form 04/LDNN) to the loan applicant.
Step 2:
- The VBSP lending branch and the loan applicant sign the Credit Contract.
- The Appraisal Report and the contracts mentioned above are created in line with each loan applicant and type of security asset.
- After the loan application is completed, it is handed over to the accounting department, ensuring the Appraisal Report has 01 copy kept at the credit department and 01 copy kept at the accounting department.
Step 3:
- Before disbursing the loan, the VBSP lending branch: files the loan security documents and relevant loan security papers (if any);
Guides the loan applicant to open a payment deposit account at the VBSP lending branch.
The opening of a payment deposit account is conducted following the current regulations of VBSP.
LawNet