Borrow 3 billion VND without collateral for the 1 million hectare rice cultivation project in the Mekong Delta.

The State Bank of Vietnam has directed credit institutions to provide loans for the implementation of the 1 million hectare high-quality rice project in the Mekong Delta with preferential interest rates reduced by 1% and unsecured loan limits of up to 3 billion VND.

Rice production in the Mekong Delta

On October 15th, at a briefing session of the Central Propaganda Department, a representative from the State Bank of Vietnam provided information on the implementation plan for the project "Sustainable Development of 1 Million Hectares of High-Quality Rice Specialization Linked to Green Growth in the Mekong Delta by 2030" (according to Decision No. 1490/QD-TTg of the Prime Minister ).

According to the State Bank of Vietnam, the program for lending to link rice production, processing, and consumption will be implemented in two phases. The pilot phase, lasting from now until the end of 2025, will be spearheaded by the Vietnam Agricultural Bank. The expansion phase will continue from 2026 to 2030 at other credit institutions.

Following directives from the State Bank of Vietnam, lending interest rates for this project will be reduced by at least 1% per year compared to normal rates. Other preferential policies such as unsecured loans, a special debt resolution mechanism, and incentives for purchasing agricultural insurance will also be applied.

According to the State Bank of Vietnam's guidelines, customers participating in rice production linkages will enjoy many credit incentives. The maximum unsecured loan amount can range from 100 million VND to 3 billion VND, depending on the borrower, such as individuals, cooperatives, or associations. In particular, for agricultural production projects following a linkage model and applying high technology, the unsecured loan amount can reach 70%-80% of the project or plan value.

The State Bank of Vietnam has sent guidance documents to the People's Committees of provinces and cities in the Mekong Delta region and credit institutions to promptly implement this directive. However, the disbursement capacity still depends on the announcement of actual cost norms and the identification of specialized and linked farming areas (to be carried out by the Ministry of Agriculture and Rural Development and the People's Committees of the localities).

To support customers facing difficulties, the State Bank of Vietnam has introduced a flexible debt restructuring mechanism. Customers experiencing difficulties due to objective reasons or force majeure can have their repayment terms restructured while maintaining their current debt classification. For cases severely affected by natural disasters, epidemics, or large enterprises facing difficulties, banks may apply a debt freezing mechanism to help customers overcome this challenging period.

In addition, the bank encourages farmers and businesses to purchase agricultural insurance, which will entitle them to preferential interest rate reductions on loans. The interest rate reduction can reach a minimum of 0.2% (per year) compared to the normal interest rate of similar loans with the same term.

VAN PHUC

Source: https://www.sggp.org.vn/vay-3-ty-dong-khong-can-the-chap-cho-de-an-1-trieu-ha-lua-tai-dbscl-post763793.html