Vietnam: What are the eligibility requirements for a loan for persons who have completely served their full prison sentences under Decision 22/2023/QD-TTg?
- What are the eligibility requirements for a loan for persons who have completely served their full prison sentences in Vietnam?
- What are the regulations on the loan interest rate applicable to persons who have completely served their full prison sentences in Vietnam?
- What are the regulations on the loan application prepared by persons who have completely served their full prison sentences in Vietnam?
What are the eligibility requirements for a loan for persons who have completely served their full prison sentences in Vietnam?
Under Article 3 of Decision 22/2023/QD-TTg on borrowers and eligibility requirements for a loan as follows:
Borrowers and eligibility requirements for a loan
Borrowers and eligibility requirements for a loan include:
1. Borrowers
a/ Persons who have completely served their full prison sentences include persons who have completely served their full prison sentences and have been granted a certificate of completion of prison sentence specified in the Law on Execution of Criminal Judgments and persons who have been granted a certificate of pardon specified in the Law on Pardon;
b) Production and business establishments include small and medium enterprises, cooperatives, cooperative groups and household businesses employing employees who have completely served their full prison sentences.
2. Eligibility requirements for a loan
a/ Persons who have completely served their full prison sentences: Be on loan demands; be named in the list of persons who have completed their prison sentences for residing in the locality, well abide by the provisions of law, do not participate in social evils, be established by the commune-level police authority and certified by the commune-level People's Committee according to Form No. 01 enclosed with this Decision. The maximum period from the completion of the prison sentence to the time of applying for loans is 05 years;
b) Production and business establishments: be lawfully established and operate in accordance with law; employ at least 10% of the total number of employees who have completed their prison sentences satisfying the conditions mentioned at Point a of this Clause and conclude employment contracts in accordance with the labor law; have a plan for loans and be certified by the commune-level People's Committee of the locality where the plan is implemented according to Form No. 02 enclosed with this Decision.
3. Persons who have completed their prison sentences and production and business establishments specified in Clauses 1 and 2 of this Article must be in cases where there are no outstanding loans at the Vietnam Bank for Social Policies for other credit programs with the same purpose of using loans for vocational training and production, business and job creation in accordance with the provisions of law.
Accordingly, the eligibility requirements for a loan for persons who have completely served their full prison sentences in Vietnam are:
* Persons who have completely served their full prison sentences: Be on loan demands; be named in the list of persons who have completed their prison sentences for residing in the locality, well abide by the provisions of law, do not participate in social evils, be established by the commune-level police authority and certified by the commune-level People's Committee according to Form No. 01 enclosed with this Decision. The maximum period from the completion of the prison sentence to the time of applying for loans is 05 years;
* Production and business establishments: be lawfully established and operate in accordance with law; employ at least 10% of the total number of employees who have completed their prison sentences satisfying the conditions mentioned at Point a of this Clause and conclude employment contracts in accordance with the labor law; have a plan for loans and be certified by the commune-level People's Committee of the locality where the plan is implemented according to Form No. 02 enclosed with Decision 22/2023/QD-TTg.
* Persons 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 be in cases where there are no outstanding loans at the Vietnam Bank for Social Policies for other credit programs with the same purpose of using loans for vocational training and production, business and job creation in accordance with the provisions of law.
What are the regulations on the loan interest rate applicable to persons who have completely served their full prison sentences in Vietnam?
In Article 9 of Decision 22/2023/QD-TTg, loan interest rates applicable to persons who have completely served their full prison sentences in Vietnam are specified as follows:
Loan interest rates
1. The loan interest rate is equal to the loan interest rate applicable to poor households prescribed from time to time.
2. The overdue debt interest rate is equal to 130% of the loan interest rate.
Accordingly, the loan interest rate applicable to persons who have completely served their full prison sentences in Vietnam is equal to the loan interest rate applicable to poor households prescribed from time to time.
Besides, the overdue debt interest rate is equal to 130% of the loan interest rate.
What are the regulations on the loan application prepared by persons who have completely served their full prison sentences in Vietnam?
under Article 13 of Decision 22/2023/QD-TTg on loan application and procedures for applying for a loan as follows:
Loan application and procedures for applying for a loan, debt repayment term, debt repayment levels, debt extension, conversion into overdue debts
1. The Vietnam Bank for Social Policies shall simply, clearly, and easily provide guidance on loan application and procedures for applying for a loan, debt repayment term, and guaranteed debt repayment levels
2. The debt extension, conversion into overdue debts shall comply with the provisions of law.
Accordingly, the Vietnam Bank for Social Policies will guide borrowers on loan application and procedures for applying for a loan.
Decision 22/2023/QD-TTg will take effect from October 10, 2023.
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