Loan term for people who have completed their prison sentence for production and business in Vietnam

Loan term for people who have completed their prison sentence for production and business in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Loan term for people who have completed their prison sentence for production and business in Vietnam

Loan terms for people who have completed their prison sentence for production and business in Vietnam are 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). The loan term includes the loan disbursement period and 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.

(Article 8 of Decision 22/2023/QD-TTg)

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

Borrowers and loan conditions include:

- Borrower object

+ People who have completely served 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 amnesty recipient has been granted a special amnesty certificate as prescribed in the Law on Pardon;

+ Production and business establishments include small and medium-sized enterprises, cooperatives, cooperative groups, and business households that employ workers who have completed prison sentences.

- Loan conditions

+ 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;

+ Production and business establishments: Established and operating legally according to the provisions of law; Employ at least 10% of the total number of employees who have completed their prison sentences and meet the conditions stated in Point a of this Clause 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.

- People who have completed their prison sentence and production and business establishments specified in Clauses 1 and 2, Article 3 of Decision 22/2023/QD-TTg 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.

(Article 3 of Decision 22/2023/QD-TTg)

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

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