Lending scope of and conditions for loans of the Bank for Social Policies in Vietnam

Lending scope of and conditions for loans of the Bank for Social Policies in Vietnam (Internet image)

1. What is the Bank for Social Policies?

Article 2 of the Charter issued together with Decision 16/2003/QD-TTg stipulates the Bank for Social Policies as follows:

- Vietnam Bank for Social Policies is a legal person.

- Its Vietnamese name: Ngan Hang Chinh Sach Xa Hoi.

Abbreviated to: NHCSXH.

- Its international transaction name: Vietnam Bank for Social Policies.

Abbreviated to: VBSP.

- Its head-office is located in Hanoi capital.

- Its charter capital is VND 5,000,000,000,000 (five thousand billion Vietnam dong).

- It has its own seal and accounts opened at the State Bank, the State Treasury and domestic and foreign banks.

- It has its financial balance sheet and various funds as provided for by law.

2. Lending scope of the Bank for Social Policies of Vietnam

The lending scope of the Bank for Social Policies according to Article 5 of the Charter issued together with Decision 16/2003/QD-TTg includes:

- Poor households.

- Pupils and students being in difficult plights and studying in universities, colleges, intermediate vocational and job-training schools.

- Subjects needing to borrow capital for job settlement under Resolution No.120/HDBT of April 11, 1992 of the Council of Ministers (now the Government).

- Social policy beneficiaries going abroad to labor for definite terms.

- Economic organizations and production and/or business households in islands, mountainous regions II and III and under the program on socio-economic development in mountainous, deep-lying or remote communes meeting with exceptional difficulties (hereinafter called Program 135 for short).

- Other subjects to be decided by the Prime Minister.

3. Conditions for being lent with capital in Vietnam

Conditions for being lent with capital in Vietnam according to Article 8 of the Charter issued together with Decision 16/2003/QD-TTg include:

- The borrowers being poor households must have lawful residence addresses and be on the lists of poor households decided by commune-level People’s Committees under the poverty standards announced by the Ministry of Labor, War Invalids and Social Affairs, who are assessed and put on the lists by savings and capital-borrowing teams, with certification by commune-level People’s Committees.

- The borrowers being other social policy subjects shall comply with the current regulations of the State and Decree 78/2002/NĐ-CP on credits for the poor and other social policy beneficiaries.

4. Capital sources of the Bank for Social Policies of Vietnam

Capital sources of the Bank for Social Policies according to Article 4 of the Charter issued together with Decision 16/2003/QD-TTg is as follows:

- Capital sources from the State budget:

+ Charter capital;

+ Lent capital for hunger elimination and poverty alleviation, job creation and the implementation of other social policies;

+ Capital partly deducted from the sources of increased revenues and/or saved expenditures of budget of various levels in order to increase lent capital sources in localities;

+ ODA capital allocated by the Government.

- Mobilized capital:

+ Interest deposits of domestic and foreign organizations and individuals;

+ Deposits of State-run credit institutions being equal to 2% of the balance of mobilized capital in Vietnam dong with interests paid under agreement;

+ Voluntary interest-free deposits of domestic and foreign organizations and individuals;

+ Bonds issued under the Government’s guarantee, deposit certificates and other valuable papers;

+ Savings of poor people.

- Capital borrowed from:

+ Financial or credit organizations at home and abroad;

+ Postal Savings, Vietnam Social Insurance;

+ The State Bank.

- Non-refundable capital voluntarily contributed by domestic and foreign individuals, economic organizations, financial and credit organizations, socio-political organizations, associations, societies and non-governmental organizations.

- Capital entrusted for preferential loans by local administrations, economic organizations, socio-political organizations, associations, societies, non-government organizations and individuals at home and abroad.

- Other capital sources.

Quoc Dat

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