Procedures to borrow capital for deposits of employees working in Korea at Vietnam Bank for Social Policies

Procedures to borrow capital for deposits of employees working in Korea at Vietnam Bank for Social Policies (Internet image)

On June 1, 2023, the Prime Minister issued Decision 16/2023/QD-TTg on providing support for loans to deposit at the Vietnam Bank for Social Policies for employees who are eligible to work in Korea under the Employment Permit Program for Foreign Workers of Korea.

Procedures to borrow capital for deposits of employees working in Korea at Vietnam Bank for Social Policies

Specifically, Article 10 of Decision 16/2023/QD-TTg stipulates the procedures for borrowing capital to deposit funds of employees working in Korea at Vietnam Bank for Social Policies as follows:

(1) Loan documents include:

(i) The original copy of the loan application, certified by the People's Committee of the commune where the employee is registered for permanent residence (according to the form enclosed with this Decision).

(ii) A copy of the Contract for sending workers to work in Korea under the EPS Program between the Overseas Labor Center and the employee.

(iii) A copy of the National Identity Card or a copy of the National Identity Card or a copy of a valid passport.

In addition to the above documents, in case the employee is a relative of a person with meritorious services to the revolution, a copy of the certificate of relatives of a person with meritorious services to the revolution shall be added according to Form No. 4, promulgated together with Decree 74/2019/ND-CP amending and supplementing a number of articles of Decree 61/2015/ND-CP stipulating policies to support job creation and the National Employment Fund;

In case the employee is subject to land recovery, an additional copy of the decision on land recovery of the competent authority shall be submitted.

Copies of papers specified in (ii), (iii) must be presented together with the originals for comparison.

(2) Loan procedures:

After signing the Contract to send workers to work in Korea under the EPS Program with the Overseas Labor Center, the employee requests the People's Committee of the commune where the employee registers for permanent residence to certify the beneficiary on the loan application form specified in (1).

Within 03 working days from the date of receipt of the complete application as prescribed in (1), the Bank for Social Policies shall approve the loan in accordance with regulations.

Term and interest rate of loan for deposit for employees to work in Korea

- About the time to lend capital for the deposit of employees to work in Korea

The loan term shall be agreed upon by the employee and the Bank for Social Policies in accordance with the regulations of the Bank for Social Policies and the deposit term stated in the contract of sending workers to work in Korea under the EPS Program of the borrower, but not exceeding 05 years and 04 months.

(Article 6 of Decision 16/2023/QD-TTg)

- Regarding the interest rate of loans for deposits of employees working in Korea

The lending interest rate is applied according to the lending interest rate of the Bank for Social Policies for laborers working abroad under contracts suitable to each subject.

Employees who borrow from the Bank for Social Policies to make a deposit are entitled to a deposit interest rate equal to the loan interest rate for deposit.

(Article 7 of Decision 16/2023/QD-TTg)

Conditions for borrowing capital for deposits of employees working in Korea

To be eligible for a loan at the Bank for Social Policies, employees must fully meet the conditions specified in Article 3 of Decision 16/2023/QD-TTg, specifically as follows:

- Being eligible for a loan from the Bank for Social Policies to work abroad in accordance with current regulations.

- Having signed a contract to work in Korea under the EPS Program with the Overseas Labor Center.

- Having registered permanent residence in the area where the Bank for Social Policies handles procedures for employees to borrow capital.

Decision 16/2023/QD-TTg takes effect from June 1, 2023.

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