Decision 22/2023/QD-TTg on the Loan Interest Rate for Persons Who Have Completed Their Prison Sentences - What Are the Regulations?
Decision 22/2023/QD-TTg on the loan interest rate for individuals who have completed their prison sentences:
At Article 9 Decision 22/2023/QD-TTg, the loan interest rate for individuals who have completed their prison sentences is specified as follows:
Loan interest rate
1. The loan interest rate is equal to the loan interest rate for poor households as regulated from time to time.
2. The overdue debt interest rate is 130% of the loan interest rate.
The loan interest rate for individuals who have completed their prison sentences is equal to the loan interest rate for poor households as regulated from time to time.Moreover, the overdue debt interest rate is 130% of the loan interest rate.
Decision 22/2023/QD-TTg on the loan interest rate for individuals who have completed their prison sentences (Image from the Internet)
What is the maximum loan term for individuals who have completed their prison sentences to obtain business loans?
Pursuant to Clause 2, Article 8 of Decision 22/2023/QD-TTg on the loan term for individuals who have completed their prison sentences, it is specified as follows:
Loan term
1. For loans for vocational training
a) The loan term is the period from the day the individual who has completed their prison sentence begins receiving the loan until the day the debt (principal and interest) is fully repaid. The loan term includes the disbursement period and the repayment period;
b) The disbursement period is the time from when the individual who has completed their prison sentence receives the first loan installment until the end of the training course, including the time the individual is allowed a leave of absence and the retention of study results (if any) by the vocational training institutions;
c) The repayment period is divided into repayment terms as prescribed by the Social Policy Bank as follows:
For training programs with a duration not exceeding 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 Social Policy Bank based on the capital resources, production and business cycle, and the borrower's repayment capability, in agreement with the borrower.
Thus, the maximum loan term for individuals who have completed their prison sentences to obtain business loans is 120 months.The specific loan term is determined by the Social Policy Bank based on capital resources, production and business cycles, and the borrower's repayment capability, in agreement with the borrower.
What is the maximum loan amount for individuals who have completed their prison sentences for business purposes?
At Article 6 of Decision 22/2023/QD-TTg, the Prime Minister of the Government of Vietnam specifies the loan amounts for individuals who have completed their prison sentences as follows:
Loan amount
1. For loans for vocational training
The maximum loan amount is 4 million VND per month per individual who has completed their prison sentence.
2. For loans for production, business, and job creation
a) Individuals who have completed their prison sentences: The maximum loan amount is 100 million VND per individual.
b) Production and business establishments: The maximum loan amount is 2 billion VND per project and not exceeding 100 million VND per employee at the production and business establishment.
Therefore, based on the above regulations, individuals who have completed their prison sentences can borrow up to 100,000,000 VND per person for business purposes.
What conditions must individuals who have completed their prison sentences meet to obtain loans?
At Article 3 of Decision 22/2023/QD-TTg on the subjects and conditions for obtaining loans, it is specified as follows:
Eligible subjects and loan conditions
The eligible subjects and loan conditions include:
1. Eligible subjects
a) Individuals who have completed their prison sentences, including those who have completed the prison term and have been issued a certificate of completion of a prison term as specified in the Law on Execution of Criminal Judgments and those who received amnesty and have been issued a certificate of amnesty in accordance with the Law on Amnesty;
b) Production and business establishments, including small and medium enterprises, cooperatives, cooperative groups, and business households employing individuals who have completed their prison sentences.
2. Loan conditions
a) Individuals who have completed their prison sentences: Must have a need for loans; be listed among individuals who have completed their prison sentences and reside locally, comply with legal regulations, and do not participate in social evils, as listed by the communal police and certified by the communal People’s Committee according to Form No. 01 attached to this Decision. The period from completing the prison term to the time of applying for the loan must be no more than 5 years;
b) Production and business establishments: Must be legally established and operate in accordance with the law; employ at least 10% of the workforce who are individuals who have completed their prison sentences and meet the conditions specified at point a of this clause and have labor contracts as per labor law; have a feasible loan plan and obtain certification from the communal People’s Committee where the plan is implemented according to Form No. 02 attached to this Decision.
3. Individuals who have completed their prison sentences and production and business establishments specified in Clauses 1 and 2 of this Article must not have existing debts at the Social Policy Bank for other credit programs with the same purpose of vocational training loans, production, business, and job creation loans as per the law.
The loan conditions for individuals who have completed their prison sentences include the following conditions:
* Individuals who have completed their prison sentences must have a need for loans; be listed among individuals who have completed their prison sentences and reside locally, comply with legal regulations, and do not participate in social evils, as listed by the communal police and certified by the communal People’s Committee according to Form No. 01 attached to this Decision. The period from completing the prison term to the time of applying for the loan must be no more than 5 years.
* Production and business establishments must be legally established and operate in accordance with the law; employ at least 10% of the workforce who are individuals who have completed their prison sentences and meet the conditions specified at point a of this clause and have labor contracts as per labor law; have a feasible loan plan and obtain certification from the communal People’s Committee where the plan is implemented according to Form No. 02 attached to Decision 22/2023/QD-TTg.
* Individuals who have completed their prison sentences and production and business establishments specified in Clauses 1 and 2 of Article 3 Decision 22/2023/QD-TTg must not have existing debts at the Social Policy Bank for other credit programs with the same purpose of vocational training loans, production, business, and job creation loans as per the law.
Decision 22/2023/QD-TTg will take effect from October 10, 2023.
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