Loan limit for one customer from the Farmers Support Fund in Vietnam

Loan limit for one customer from the Farmers Support Fund in Vietnam 

- The outstanding loan balance for one customer must not exceed 10% of the equity of the Farmer Support Fund stated in the annual financial statement or the latest 6-month financial statement approved by the Management Board.

- The outstanding loan balance for a general plan of a group of members of the Farmers' Union does not exceed 20% of the equity of the Farmers Support Fund stated in the annual financial statement or the financial statement of the last 6 months.
approved by the Management Board.

- The Management Board of the Farmers' Support Fund shall submit to the Standing Committee of the Farmers' Union at the same level the decision on the loan limit for each customer and the general plan of the group of members of the Farmers' Union to exceed the above-mentioned loan limit.

- For the loan plan using the entrusted capital source with regulations on lending limits different from those of this Decree, the agreement signed with the entrusting party shall be followed.

Restructure the repayment term for borrowers from the Farmers Support Fund in Vietnam

The Farmers Support Fund considers and decides to restructure the repayment term (including debt term adjustment and debt extension measures) on the basis of the borrower's request, the financial capacity of the Farmers Support Fund and the results of the Farmers Support Fund's assessment of the borrower's debt repayment ability, specifically:

- The customer is unable to repay the loan principal and/or interest on time and is assessed by the Farmers Support Fund as being able to fully repay the loan principal and/or interest according to the adjusted repayment term, the Farmers Support Fund considers and adjusts the repayment term of the loan principal and/or interest in accordance with the customer's repayment ability; The loan term remains unchanged.

- The customer is unable to repay the loan principal and/or interest on time according to the agreed loan term and is assessed by the Farmer Support Fund as being able to fully repay the principal and/or interest on the loan for a certain period of time after the loan term, the Farmer Support Fund will consider extending the loan with a period suitable to the customer's repayment ability; no more than 1/2 of the loan period in the first signed credit contract.

- The content and authority to decide on debt rescheduling according to the Organization and Operation Charter of the Farmers Support Fund and the internal regulations on lending and debt management of the Farmers Support Fund.

More details can be found in Decree 37/2023/NĐ-CP effective as of August 8, 2023.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE