Is it permissible for farmers in rural areas in Vietnam to be provided with 200.000.000 VND unsecured loans to develop agriculture?

Is it permissible for farmers in rural areas in Vietnam to be provided with 200.000.000 VND unsecured loans to develop agriculture?

Pursuant to Clause 2 Article 9 of the Decree 55/2015/NĐ-CP (amended by Clause 3 Article 1 of the Decree 116/2018/NĐ-CP), individuals, family households, artels, business households, cooperatives, cooperatives alliances and farm owners, shall be provided with unsecured loans dependent on the following limits:

a) A maximum amount of VND 100 million for individuals and family households which reside outside of rural areas and do agribusiness (except for cases specified at Point c Clause 2 this Article);

b) A maximum amount of VND 200 million for individuals and family households which reside within rural areas;

c) A maximum amount of VND 200 million for individuals, family households investing in industrial and fruit perennials;

d) A maximum amount of VND 300 million for artels and business households;

dd) A maximum amount of VND 500 million for aquacultural production households, offshore fishery households signing the contract for product consumption with direct processing and export organizations;

e) A maximum amount of VND 01 billion for cooperatives, farm owners that operate within rural localities, or carrying out business operations in the agriculture sector;

g) A maximum amount of VND 02 billion for cooperatives specializing in aquacultural production or offshore fishery or provision of services for the offshore fishery; aquacultural farm owners; cooperatives alliances operating within rural localities or carrying out business operations in the agriculture sector, exclusive of entities specified at Point h Clause 2 of this Article;

h) A maximum amount of VND 03 billion for cooperatives alliances specializing in aquacultural production or offshore fishery or provision of services for the offshore fishery. 

As regulations above, you are permissible to be provided with unsecured loan of a maximum amount of VND 200 million for agricultural development.

What documents are needed for unsecured loans in Vietnam?

Pursuant to Clause 3 Article 9 of the Decree 55/2015/NĐ-CP stipulating mechanism for securing loans in Vietnam as follows:

3. Unsecured loan customers specified in Clause 2 of this Article must submit land use right certificates to lending credit institutions (applicable to those issued with land use right certificate), or documents confirming by the People’s Committees of communes that land use right certificates have not been issued yet and such land is not in dispute. Customers shall only be allowed to use the document confirming that the land use right certificate has not been issued yet and such land is not in dispute to serve the purpose of taking out loans at a credit institution and assume their legal liability to use this written confirmation to take out unsecured loans in accordance with regulations laid down in this Decree.

As regulations above, you have to submit land use right certificates, or documents confirming by the People’s Committees of communes that land use right certificates have not been issued yet and such land is not in dispute.

What are lending principles for developing agriculture in Vietnam?

Pursuant to Article 5 of the Decree 55/2015/NĐ-CP stipulating lending principles as follows:

1. Credit institutions shall provide loans for customers in accordance with regulations hereof. Contents that fall outside of this Decree shall be governed by applicable laws on lending by credit institutions to customers.

2. Customers shall be allowed to have access to unsecured loans in accordance with regulations laid down in Article 9, 14 and 15 hereof. If customers have the demands for loans which are greater than the demands for unsecured loans as prescribed in this Article, the surplus loan demand shall be governed by applicable laws on lending by credit institutions to customers.

Above are 2 lending principles for agricultural development in Vietnam.

Best regards!