Loosening the credit mechanism for agriculture and rural areas

The Governor of the State Bank of Vietnam has issued Circular No. 29/2025/TT-NHNN guiding credit institutions and foreign bank branches in lending to the agricultural and rural sectors.

Tea growing area in Lam Dong . Illustration photo: Quang Quyet/VNA

This document aims to implement the provisions of Decree 55/2015/ND-CP of the Government on credit policy for agricultural and rural development, as amended and supplemented by Decree 116/2018/ND-CP and Decree 156/2025/ND-CP.

The Circular consists of 8 articles, regulating the scope, subjects of application, debt repayment restructuring for customers facing difficulties due to objective reasons, force majeure, debt grace period, maximum deduction rate for secured assets, and responsibilities of credit institutions and units under the State Bank.

Specifically, the Circular stipulates the restructuring of debt repayment terms for customers facing difficulties due to objective and force majeure reasons; accordingly, the restructuring of debt repayment terms prescribed in this Circular does not limit the number of times the debt repayment term is restructured, but the time for restructuring debt repayment terms for the same specific objective and force majeure reason shall not exceed 12 months from the due date of each principal and interest balance for which the repayment term is restructured for short-term debt; 36 months from the due date of each principal and interest balance for which the repayment term is restructured for medium- and long-term debt.

At the same time, regulations on debt grace period for customers borrowing capital to plant, care for, and replant perennial crops; in which, the credit institution and the customer agree on a grace period for principal and/or interest in accordance with the construction stage of perennial crops.

In addition, another important content of the Circular is the regulation on the maximum deduction rate for collateral of loans in the agricultural and rural sectors equal to the maximum deduction rate for collateral according to the Government 's regulations on the deduction level, method of setting up risk provisions and the use of provisions to handle risks in the operations of credit institutions and foreign bank branches.

The Circular takes effect from November 15, 2025, expected to create more favorable conditions for people and businesses to access agricultural and rural credit capital, contributing to promoting production development and social security.

Source: https://baotintuc.vn/tai-chinh-ngan-hang/noi-co-che-tin-dung-nong-nghiep-nong-thon-20251004092119308.htm