In accordance with the Decree No. 55/2015/ND-CP dated June 09, 2015 of the Government on credit policies for agricultural and rural development, organizations and individuals that may borrow loans including individuals and households residing in rural areas or engaged in production and business activities in the field of agriculture; business households operating in rural areas; farm owners; cooperative groups, cooperatives and unions of cooperatives located in rural areas or engaged in production and business activities in the field of agriculture; enterprises conducting production and business activities in rural areas( except real estate enterprises, mining enterprises, hydropower and thermo-power plants…) Credit institutions may consider providing loans to clients with or without collateral in accordance with law.
Within that, the a loan without collateral from credit institutions, which must not exceed VND 50 million, for individuals and households residing outside rural areas and engaged in production and business activities in the field of agriculture, VND 100 million, for individuals and households residing in rural areas; and individuals and households residing outside rural areas and having agricultural production linkage with cooperatives or enterprises; VND 200 million, for individuals and households planting industrial trees and perennial fruit trees; VND 300 million, for cooperative groups and business households; VND 500 million, for aquaculture households and offshore fishing households signing product sale contracts with direct processing and exporting organizations and VND 3 billion, for unions of aquaculture or offshore fishing or offshore fishing service cooperatives.
Clients eligible to borrow loans without collateral as prescribed in Clause 2 of this Article shall submit to credit institutions a land use rights certificate (for those possessing this certificate) or a commune-level People’s Committee’s written certification that they have not yet been granted a land use rights certificate and that the land is dispute-free.
Credit institutions and clients shall reach agreement on loan terms and duration of credit limit maintenance for clients based on production and business cycles, capital recovery duration of production and business projects or plans, and payment ability of clients and loan-funding sources of credit institutions. If clients cannot pay debts on schedule due to an objective or force majeure circumstance, credit institutions may consider debt rescheduling and keeping unchanged debt categories for clients, and at the same time, based on the feasibility of production and business projects or plans and debt payment ability of clients, consider providing new loans with a view to helping clients overcome difficulties, stabilize production and pay both old and new debts.
This Decree takes effect on July 25, 2015.
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