Credit policy for people who have completed their prison sentence in Vietnam

Credit policy for people who have completed their prison sentence in Vietnam

Decision 22/2023/QD-TTg stipulates credit policies for people who have completed prison sentences and production and business establishments that employ workers who have completed their prison sentence can borrow capital from the Bank for Social Policies for vocational training, production, business, and job creation.

In particular, the purpose and loan level are specified as follows:

Purpose of using loan capital

- For loans for vocational training

Expenses for studying and living expenses of people who have completed their prison sentence while studying at universities (or equivalent to universities), colleges, professional secondary schools, and vocational education establishments established and operating in accordance with Vietnamese law.

This cost includes: tuition, expenses for purchasing books and learning aids, and travel accommodation expenses.

- For loans for production, business, and job creation

Costs for production, business, and job creation include costs for carrying out production, business, and job creation activities.

Loan capital level

- For loans for vocational training

The maximum loan capital 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: the 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 establishment.

Loan method

- For people who have completed their prison sentence

+ Implement lending methods through households. The household representative of the person who has completed his prison sentence is the person who borrows money and transacts with the Bank for Social Policies.

In case there is no member at least 18 years old in the household or the remaining member no longer has the ability to work or has 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 made, provides loans in the form of entrustment to socio-political organizations.

- For production and business establishments

The Bank for Social Policies, where the loan is made, directly lends.

More details can be found in Decision 22/2023/QD-TTg, taking effect on October 10, 2023.

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