Subjects Eligible for Loans for Individuals Who Have Completed Their Prison Sentences: Which Subjects Are Included? What Are the Available Loan Methods?
Subjects eligible for loans for persons having served their prison sentences include which subjects? What are the loan methods?
Article 3 of Decision 22/2023/QD-TTg stipulates the loan subjects and loan conditions as follows:
Loan Subjects and Conditions
Loan subjects and conditions include:
1. Loan Subjects
a) Persons having served their prison sentences, including those who have completed their prison term and obtained a certificate of completion of the prison sentence as stipulated in the Law on Criminal Judgment Execution and those who have received amnesty and obtained a certificate of amnesty as stipulated in the Law on Amnesty;
b) Production and business establishments, including small and medium-sized enterprises, cooperatives, cooperative groups, and business households that employ persons who have completed their prison sentences.
2. Loan Conditions
a) Persons having served their prison sentences must have a need for loans, be listed in the local residency register for persons having served their prison sentences, adhere to legal regulations, avoid social evils, according to the list formulated by the Commune Police and confirmed by the Commune People's Committee as per Form No. 01 attached to this Decision. The period from the completion of the prison sentence to the time of loan application should not exceed 5 years;
b) Production and business establishments must be legally established and operating in accordance with the law, employ at least 10% of the total workforce who have completed their prison sentences and meet the conditions specified in point a of this clause, sign labor contracts as per labor legislation, and have a loan plan confirmed by the Commune People's Committee where the plan is to be implemented as per Form No. 02 attached to this Decision.
3. Persons having served their prison sentences and production and business establishments stated in clause 1 and clause 2 of this Article must not have outstanding loans from the Social Policy Bank for other credit programs with the same loan usage purposes for vocational training, production, business, and job creation in accordance with the law.
Accordingly, the loan subjects include:
- Persons having served their prison sentences, including those who have completed their prison term and obtained a certificate of completion of the prison sentence as stipulated in the Law on Criminal Judgment Execution and those who have received amnesty and obtained a certificate of amnesty as stipulated in the Law on Amnesty;
- Production and business establishments, including small and medium-sized enterprises, cooperatives, cooperative groups, and business households that employ persons who have completed their prison sentences.
Additionally, Article 4 of Decision 22/2023/QD-TTg on loan methods includes:
* For persons having served their prison sentences:
- Loans are provided through family households. The representative of the family household of the person having served their prison sentence is the borrower and transacts with the Social Policy Bank. In cases where no member in the family household is 18 years or older, or the remaining member is incapacitated for labor, lacks full civil capacity according to law, the person having served their prison sentence directly undertakes the loan at the Social Policy Bank.
- The Social Policy Bank where the loan is provided implements loan disbursement through political-social organizations.
* For production and business establishments:
- The Social Policy Bank where the loan is provided implements direct lending.
Subjects eligible for loans for persons having served their prison sentences include which subjects? What are the loan methods?
Can production and business establishments borrow up to 2 billion VND per project if employing persons who have completed their prison sentences?
Article 6 of Decision 22/2023/QD-TTg stipulates the loan amount as follows:
Loan Amount
1. For vocational training loans
The maximum loan amount is 4 million VND/month/person having completed their prison sentence.
2. For production, business, and job creation loans
a) Persons having served their prison sentences: The maximum loan amount is 100 million VND/person having completed their prison sentence;
b) Production and business establishments: The maximum loan amount is 2 billion VND/project and no more than 100 million VND/worker at the production and business establishment.
Therefore, for production and business establishments employing persons who have completed their prison sentences, the maximum loan amount is 2 billion VND/project and no more than 100 million VND/worker at the production and business establishment.
In addition, clause 2 of Article 8 of Decision 22/2023/QD-TTg stipulates the loan term for production and business establishments borrowing for production, business, and job creation as follows:
Loan Term
...
2. For production, business, and job creation loans
The maximum loan term is 120 months. The specific loan term is determined by the Social Policy Bank based on capital resources, production and business cycles, debt repayment capabilities of the borrower, and agreed upon with the borrower.
Accordingly, the maximum loan term for production and business establishments borrowing for production, business, and job creation is 120 months. The specific loan term is determined by the Social Policy Bank based on capital resources, production and business cycles, debt repayment capabilities, and agreed upon with the borrower.
What is the purpose of the loans for persons who have completed their prison sentences?
Based on Article 5 of Decision 22/2023/QD-TTg, the purpose of loans for persons having completed their prison sentences is stipulated as follows:
- For vocational training loans:
+ Expenses for studying and living of persons having completed their prison sentences during the study period at universities (or equivalent), colleges, professional secondary schools, and vocational education institutions established and operating under the laws of Vietnam. These expenses include: tuition fees; costs for textbooks, learning tools; costs for food, accommodation, and travel.
- For production, business, and job creation loans:
+ Expenses for production, business, and job creation include costs for carrying out production, business activities, and job creation.
Decision 22/2023/QD-TTg will be effective from October 10, 2023.
LawNet