Decision 22/2023/QD-TTg on loan terms for workers who have completed their prison sentences.
What is the loan term for workers who have served their prison sentences according to Decision 22/2023/QD-TTg?
According to the provisions of Article 8 Decision 22/2023/QD-TTg on the loan term as follows:
Loan Term
1. For loan to vocational training
a) The loan term is the period calculated from the day the person who has served their prison sentence starts receiving the loan until the debt (principal and interest) is fully paid. The loan term includes the disbursement period and the repayment period;
b) The disbursement period is the time from the day the person who has served their prison sentence receives the first loan amount until the end of the training course, including the time when they are allowed by the vocational training institutions to take a temporary leave and have their study results preserved (if any);
c) The repayment period is divided into repayment periods as prescribed by the Vietnam Bank for Social Policies, as follows:
For training programs with a duration of no more than one year, the maximum repayment period is twice the disbursement period.
For other training programs, the maximum repayment period equals the disbursement period.
2. For loans for production, business, and job creation
The maximum loan term is 120 months. The specific loan term is determined by the Vietnam Bank for Social Policies based on the capital source, business cycle, and repayment capacity of the borrower to reach an agreement with the borrower.
According to the above regulations, for loans to vocational training for those who have served their prison sentences:
- The loan term is the period calculated from the day the person who has served their prison sentence starts receiving the loan until the debt (principal and interest) is fully paid. The loan term includes the disbursement period and the repayment period.
The disbursement period is the time from the day the person who has served their prison sentence receives the first loan amount until the end of the training course, including the time when they are allowed by the vocational training institutions to take a temporary leave and have their study results preserved (if any). The repayment period is divided into repayment periods as prescribed by the Vietnam Bank for Social Policies, as follows:
+ For training programs with a duration of no more than one year, the maximum repayment period is twice the disbursement period.
+ For other training programs, the maximum repayment period equals the disbursement period.
For loans for production, business, and job creation, the maximum loan term is 120 months. The specific loan term is determined by the Vietnam Bank for Social Policies.
Decision 22/2023/QD-TTg on loan term for workers who have served their prison sentences
What are the loan conditions for those who have served their prison sentences?
According to Article 3 of Decision 22/2023/QD-TTg on loan conditions for those who have served their prison sentences:
Borrowing entities and conditions
Borrowing entities and conditions include:
...
2. Loan conditions
a) Individuals who have served their prison sentences: Must have a demand for loans; be listed in the local residency list of those who have served their prison sentences, comply well with legal regulations, not involved in social evils, prepared by the Commune-level Police and certified by the Commune-level People's Committee according to Form No. 01 attached to this Decision. The period from the completion of the sentence to the loan application must not exceed 5 years;
b) Business establishments: Must be legally established and operate in accordance with the law; employ at least 10% of their workforce being those who have served their prison sentences and meet the conditions specified in point a of this clause and have labor contracts as per labor law; have a loan plan and be confirmed by the Commune-level People's Committee according to Form No. 02 attached to this Decision.
3. Individuals who have served their prison sentences and business establishments specified in clauses 1 and 2 of this Article must not have outstanding debts at the Vietnam Bank for Social Policies for other credit programs with the same purpose for vocational training loans and production, business, and job creation according to regulations of the law.
The loan conditions for those who have served their prison sentences are as follows:
- Must have a demand for loans
- Must be listed in the local residency list of those who have served their prison sentences
- Must comply well with legal regulations, not involved in social evils, prepared by the Commune-level Police and certified by the Commune-level People's Committee according to Form No. 01 attached to Decision 22/2023/QD-TTg.
- The period from the completion of the sentence to the loan application must not exceed 5 years
- Must not have outstanding debts at the Vietnam Bank for Social Policies for other credit programs with the same purpose for vocational training loans and production, business, and job creation according to regulations of the law.
Through what methods can those who have served their prison sentences borrow?
Those who have served their prison sentences can borrow through the methods specified in clause 1 Article 4 of Decision 22/2023/QD-TTg as follows:
- Through the household method. The representative of the household of the person who has served their prison sentence is the one to sign the loan and transact with the Vietnam Bank for Social Policies. If there are no other household members aged 18 or above, or if the remaining members are incapable of labor, or lack full civil act capacity under the law, the person who has served their prison sentence will directly sign the loan with the Vietnam Bank for Social Policies;
- The Vietnam Bank for Social Policies will delegate loan issuance to socio-political organizations where applicable.
Decision 22/2023/QD-TTg will take effect from October 10, 2023.
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