05 things you should know about credit for people who have completed their prison sentence in Vietnam

05 things you should know about credit for people who have completed their prison sentence in Vietnam (Internet image)

Regarding this issue, LawNet answers as follows:

1. Credit borrowers for people who have completed their prison sentence in Vietnam

According to Clause 1, Article 3 of Decision 22/2023/QD-TTg, credit loan borrowers for people who have completed their prison sentence include:

- People who have completed serving their prison sentence include people who have completed serving their prison sentence and have been issued a certificate of completion of their prison sentence as prescribed in the Law on Execution of Criminal Judgments, and the person granted amnesty has been granted a certificate of amnesty specified in the Law on Pardon, cooperatives, cooperative groups, and business households that employ workers who have completed prison sentences.

2. Credit loan conditions for people who have completed their prison sentence in Vietnam

Specifically, Clause 2 of Article 3 of Decision 22/2023/QD-TTg stipulates credit loan conditions for people who have completed their prison sentences as follows:

(i) People who have completed their prison sentence: need a loan; whose name is on the list of people who have completed their prison sentence and returned to reside in their locality, well obeyed the provisions of the law, and did not participate in social evils prepared by the Commune Police and certified by the Commune People's Committee according to Form No. 01 attached to Decision 22/2023/QD-TTg.

The maximum time from the time of serving the prison sentence to the time of borrowing capital is 05 years;

(ii) Production and business establishments: legally established and operating according to the provisions of the law; Employ at least 10% of the total number of employees who have completed their prison sentences and meet the conditions stated in (i) and sign labor contracts according to the provisions of labor law; have a loan plan and have it confirmed by the Commune People's Committee where the plan is implemented according to Form No. 02 attached to Decision 22/2023/QD-TTg.

Note:

People who have completed their prison sentence and the production and business establishments specified in Sections 1 and 2 must have no outstanding debt at the Bank for Social Policies for other credit programs with the same purpose of using loan capital for vocational training, production, business, and job creation according to the provisions of law.

3. Credit loan capital level for people who have completed their prison sentence in Vietnam

The loan capital level for each subject of credit for people who have completed their prison sentence is prescribed as follows:

- For loans for vocational training: the maximum loan amount is 04 million VND/month/person who has completed their prison sentence.

- For loans for production, business, and job creation

+ People who have completed their prison sentence: Maximum loan amount is 100 million VND/person who has completed their prison sentence;

+ Production and business establishments: Maximum loan capital is 02 billion VND/project and not more than 100 million VND/employee at the production and business establishments.

(Article 6 of Decision 22/2023/QD-TTg)

4. Credit loan term and interest rate for people who have completed their prison sentence

4.1. Loan maturity date

According to Article 8 of Decision 22/2023/QD-TTg, the loan term of each credit subject for people who have completed their prison sentence is as follows:

- For loans for vocational training

+ Loan term is the period of time calculated from the date the person who has completed his prison sentence begins receiving the loan until the date the debt is fully paid (principal and interest). Loan term includes the loan disbursement period and the debt repayment period;

+ Loan issuance term is the period of time from the date the person who has completed his prison sentence receives the first loan until the date the course ends, including the time when a person who has completed his prison sentence is allowed by vocational training establishments to leave school for a certain period of time and have his or her study results preserved (if any);

+ The debt repayment period is divided into repayment periods prescribed by the Bank for Social Policies, as follows:

For training programs with a training period of no more than one year, the maximum repayment period is 2 times the loan issuance period.

For other training programs, the maximum repayment period is equal to the loan issuance period.

- For loans for production, business, and job creation

Maximum loan term is 120 months. The specific loan term is considered and decided by the Bank for Social Policies based on capital sources, production and business cycles, and the borrower's ability to repay debt to negotiate with loan customers.

4.2. Interest rates

Specifically, Article 9 of Decision 22/2023/QD-TTg regulates credit lending interest rates for people who have completed their prison sentences as follows:

- The loan interest rate is equal to the lending interest rate for poor households prescribed from time to time.

- Overdue debt interest rates are 130% of loan interest rates.

5. Credit lending methods for people who have completed their prison sentence in Vietnam

Credit lending methods for people who have completed their prison sentence are prescribed as follows:

(1) For people who have completed their prison sentence

- Implementing lending methods through households. The representative of the household of the person who has finished serving the prison sentence is the person who borrows money and makes transactions with the Bank for Social Policies. In case there is no longer a member of the household who is 18 years of age or older or the remaining member no longer has the ability to work or does not have full civil act capacity according to the provisions of law, people who have completed their prison sentence directly borrow capital at the Bank for Social Policies;

- The Bank for Social Policies, where the loan is granted, provides loans by entrustment method to socio-political organizations.

(2) For production and business establishments: The Bank for Social Policies, where the loan is granted, will lend directly.

(Article 4 of Decision 22/2023/QD-TTg)

Decision 22/2023/QD-TTg takes effect from October 10, 2023.

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