From August 8, what is the maximum loan increase for households doing production and business in difficult areas?

According to Decision 17/2023/QD-TTg dated June 5, 2023, households can borrow up to 100 million VND/person. This decision also adds conditions for borrowing capital.

Tăng mức cho vay tối đa với hộ gia đình sản xuất, kinh doanh tại vùng khó khăn từ ngày 8/8/2023. (Nguồn: Internet)

Increase the maximum loan amount for households doing production and business in difficult areas from August 8, 2023. (Source: Internet)

On June 5, 2023, the Prime Minister issued Decision 17/2023/QD-TTg amending Decision 31/2007/QD-TTg on credit for households engaged in production and business in disadvantaged areas and Decision 92/2009/QD-TTg on credit for traders conducting commercial activities in disadvantaged areas.

Increase maximum loan amount for households doing production and business in difficult areas from August 8, 2023

According to Clause 4, Article 1 of Decision 17/2023/QD-TTg amending Article 7 of Decision 31/2007/QD-TTg, the maximum loan amount is 100 million VND/borrower.

Currently, in Article 7 of Decision 31/2007/QD-TTg (amended in Decision 306/QD-TTg in 2016), the loan amount for households producing and doing business in difficult areas is as follows:

- The maximum loan amount for a production and business household is 50 million VND.

- In some specific cases, the loan amount of a household can be over 50 million VND. The Social Policy Bank will base on the capital capacity, investment needs and debt repayment ability of the production and business household to determine the specific loan amount, but not exceeding 100 million VND.

For production and business households with a loan demand of over 50 million VND, in addition to the conditions specified in Article 4 of Decision 31/2007/QD-TTg, they must also:

+ Have own capital (including: Value of materials, land use rights, labor, capital) participating at least equal to 20% of the total capital demand of the project or production and business plan;

+ Commit to using assets formed from loan capital as collateral for the loan.

Thus, the maximum loan amount for households doing production and business in difficult areas increases from 50 million VND to 100 million VND/borrower.

Currently, regulations stipulate that in some specific cases, the loan amount of a household can be over 50 million VND. The Social Policy Bank is assigned to base on the capital capacity, investment needs and debt repayment ability of the production and business household to determine the specific loan amount, but not exceeding 100 million VND.

Supplementing conditions for borrowing capital for households producing and doing business in difficult areas

Conditions for borrowing capital for households producing and doing business in difficult areas according to Article 4 of Decision 31/2007/QD-TTg (amended in Decision 17/2023/QD-TTg) are as follows:

(1) Borrowers must have a project or production and business plan confirmed by the People's Committee of the commune where the project or production and business plan is implemented.

(2) Borrowers must have full civil capacity.

(3) The borrower must legally reside at the location where the project or production or business plan is implemented.

(4) Borrowers are not poor households, near-poor households or households that have just escaped poverty according to the Prime Minister's Decision.

(5) Borrowers have no outstanding debt at the Social Policy Bank for the following programs:

- Loan program to support job creation, maintenance and expansion according to the provisions of law on job creation support policies and the National Employment Fund;

- Investment loan program, support for the development of precious medicinal herb growing areas according to the provisions of law on preferential credit policies to implement the National Target Program on socio -economic development in ethnic minority and mountainous areas from 2021 to 2030, phase 1: from 2021 to 2025 and amended, supplemented and replaced documents (if any).

- Other credit loan programs for households to carry out production and business activities according to the provisions of law (if any).

Accordingly, (4) and (5) are the conditions added in Decision 17/2023/QD-TTg.

Source