Hướng dẫn 1520/NHCS-TDNN

GUIDANCE

PROVIDING PREFERENTIAL INTEREST LOANS FOR POOR HOUSEHOLDS IN 61 POOR DISTRICTS

According to the Government’s Resolution No. 30a/2008/NQ-CP dated December 27th, 2008

Pursuant to the Government’s Resolution No. 30a/2008/NQ-CP dated December 27th, 2008 on the program of supporting quick and sustainable poverty reduction for 61 poor districts.

Pursuant to Circular No. 30a/2008/NQ-CP">06/2009/TT-NHNN dated 9th April 2009 of the State Bank of Vietnam regulates in detail on the preferential interest policy under the support program for 61 poor districts at the Government’s Resolution No. 30a/2008/NQ-CP dated December 27th, 2008.

To lend with the preferential lending rate for poor households in 61 poor districts according to the Government’s Resolution No. 30a/2008/NQ-CP dated December 27th, 2008 (hereinafter called Resolution 30a), The General Director of the Vietnam Bank for social Policies (VBSP) makes instruction for provincial branches as follows:

1. Application scope and beneficiaries:

Being poor households entitled to borrow loans under the current regulations of VBSP in 61 poor districts (List of 61 poor districts under Resolution 30a on the support program for quick and sustainable poverty reduction includes districts stated in Annex I enclosed with Letter No.705/TTg-GKVX dated May 11th 2009 of the Prime Minister. The districts just separated from 61 above poor districts belong to the beneficiaries of Resolution 30a).

2. Condition of applying the policy of supporting preferential lending rate:

2.1. The poor households inhabit and have the legal residence in commune and townships in 61 poor districts, belong to lists of disadvantaged households selected by the Savings & credit Groups and certified by the Chairman of communal People's Committee in compliance with the poverty standard stated by the MOLISA.

2.2. The householder (or authorized person) has full civil behavior ability, acting as the family's representative in credit relationship with the bank.

3. Loan size, loan rate and loan term:

Poor households of 61 poor districts are entitled to borrow loans in VBSP as stipulated at the Decree No.78/2002/NĐ-CP dated 4th October 2002 on providing preferential credit for the poor and other social policy beneficiaries and other relevant documents of the Government, Prime Minister, Ministries and Agencies. In addition, the borrowers also enjoy the following policy when borrowing in VBSP:

3.1. To borrow a maximum preferential loan of VND 5 million one time, exemption from lending rate in the periods of 02 years to procure seedlings, poultry or cattle or aqua-culture.

3.2. In case poor households are in unfavorable conditions for animal husbandry but have demand for handicraft development, shall be lent a maximum preferential loan of VND 5 million one time, exemption from lending rate in 02 years .

Supporting lending rate stated at items 3.1 & 3.2 above is to be applied for new loans since the instruction document is of validity. In case the borrowers borrow over VND 5 million and more than 02-year term shall be applied the current lending rate of poor households at the lending moment. Moreover, the poor households who borrowed loans as 31st December 2009 are still enjoyed the policy of lending rate support under Decision No.579/QĐ-TTg dated May 6th 2009 of the Prime Minister, Guidance No.1221/NHCS-KT dated May 19th 2009 of the VBSP General Director. In case less then 02-year term but have to make loan extension or overdue debt scheduling, the borrowers are still exempted from the lending rate in that 02-year period.

In case the clients borrowed loans from the poor household lending program or borrowed VND 30 million at maximum, they are still entitled to borrow more VND 05 million at maximum with lending rate of 0% in 02 years if having borrowing needs for the purposes stated at Item 3 of this document.

4. Loan procedures and process:

To implement in compliance with the current guidance of VBSP and use the borrowing request cum loan utilization project in Form 01B/TD (attached).

5. Payment of commission and entrusted service fees:

Payment of trusted service fees for mass organizations at commune level and commissions for SCGs is exercised once a quarter based on the quarterly average outstanding loans as regulated:

- service fees for mass organizations at commune level: 0.03%/month;

- Commission for SCGs: 0.05%/month.

6. Recording and supervision of credit dossiers:

- Borrowing request cum loan utilization project (Form 01B/TD).

- Loan book: Recording and supervising outstanding loans in Loan Book (kept by borrowers) and Book of supervising Lending, Loan collection and Outstanding loan (kept by the bank) shall be exercised the same as the recording way of conducting lending rate support under the Guidance No.1221/NHCS-KT dated May 19th 2009 of the VBSP General Director.

- List of poor households who request loans (Form 03/TD) is revised as follows:

+ Column 4 & 7 “amount” is replaced by “total amount”.

+ Adding the column “of which: lending rate of 0% in 02 years” into parts of Request of SCGs and Approval of VBSP.

7. Implementation:

7.1. Statistic reporting system:

Total results of lending, loan collection and outstanding loans of the poor household program in 61 poor districts under Decree 30a are consolidated in the report of lending to poor households (Form 02.1/BCTD).

Besides, to submit the result of lending to poor households under Decree 30a to the Prime Minister and relevant Ministries and Agencies, the statistic report shall be submitted by provincial branch to the VBSP HQ on date 7th every month according to Form 02 enclosed with Circular No.06 30a/2008/NQ-CP">06/2009/TT-NHNN Especially, the amount of bad debts in form 02 includes overdue loan and frozen loan from non-bearing interest loans under this document.

7.2. The Directors of provincial and district branches take responsibility to report to People's committees at levels, Representative Unit of BOD at the same level in order to steer and coordinate with mass organizations implementing lending to poor households with preferential loan rate under Decree 30a/2008/NQ-CP of the Government.

7.3. VBSP coordinates with localities to organize on public the preferential loan policy of Decree 30a in People's committee at commune level and coordinate with relevant agencies to communicate this one to beneficiaries and exercise the instruction of General Director in this document. VBSP is not allowed to reject applying this policy for eligible borrowers.

In case the borrowers use loans for wrong purpose, the bank coordinates with mass organization and People's Committee at levels to collect loans and base on violation levels to address as regulated by the Law.

This guidance takes effect from signing date, replacing Guidance No.867/NHCS-TD dated 20th April 2009 of General Director out of validity.

(Enclosed with Circular No. 30a/2008/NQ-CP">06/2009/TT-NHNN dated 9th April 2009 of the Central Bank of Vietnam)