On April 26, 2014, the Prime Minister signed the Decision No. 29/2014/QD-TTg on credit program for households, HIV patients, rehabilitated drug abusers, persons undergoing opium replacement therapy, and reformed prostitutes.
Accordingly, household borrowers are households having members that are HIV patients; rehabilitated drug abusers; persons undergoing opium replacement therapy and reformed prostitutes may take a maximum loan of VND 30 million when have conditions such as: the household is legally and stably residing in the administrative division where the loan is granted; the household has a business plan and is able to repay the loan as committed and the household is a member of a Saving and Borrowing Club of the Vietnam Bank for Social Policies.
Individual borrowers who are HIV patients, persons undergoing opium replacement therapy and reformed prostitute may take a maximum loan of VND 20 million with no collateral.
Besides, apart from conditions as the households, individual borrower lives alone or with an underage child, or parents, spouse, children, grandparents, siblings that exceed the working age or cannot work. If a borrower is also eligible to take loans from other incentive programs of Vietnam Bank for Social Policies, only loans from one of such incentive programs shall be granted.
This Decision also points out clearly that the maximum loan period is 60 months. The specific loan period shall be agreed between Vietnam Bank for Social Policies and the borrower, which suits the borrower’s business cycle and ability to repay the loan.
During the experimental period from 2014 to 2016, the maximum loan period is 36 months. The interest rates are that applied to poor families prescribed by the government in each period. The rate of interest on overdue debt is 130% of the initial interest rate.
This Decision takes effect on June 15, 2014.
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