1,195 employees whose jobs were suspended due to the Covid-19 pandemic borrowed loans from the VND 16,000 billion credit package

(VBSP News) VBSP branches in provinces and cities are organizing to sign credit contracts and disburse loans for employers to pay work suspension wages for their employees due to the effects of the Covid-19 pandemic according to the Government's policy.

VBSP is implementing Decision No. 32/2020/QD-TTg dated October 19, 2020 amending and supplementing a number of articles of Decision No. 15/2020/QD-TTg dated April 24, 2020 of the Prime Minister on the implementation of policies to support people facing difficulties caused by the COVID-19 pandemic (Decision No. 32/2020).

VBSP branch in Hung Yen province signs the credit contract with customers

In addition, VBSP branches in other provinces and cities are continuing to coordinate with customers to complete loan applications and disbursement plans. As of November 17, sixteen VBSP branches are allocated capital according to Decision 32/2020 to sign credit contracts and disburse loans to 40 customers (employers) with 1,195 employees. The total amount is more than VND 6 billion.

Customers are approved for loans when they fully meet the following conditions: Employing laborers who have taken part in social insurance payments but were forced to stop working for at least one month between April 1 and December 31, 2020; Having their revenue drop by at least 20 per cent in the first quarter of 2020 or in the quarter prior to the lending approval compared to the corresponding period in 2019; Not having bad debts at credit institutions and foreign bank branches as of December 31, 2019.

VBSP branch in Quang Binh province signs the credit contract with customers

Lending size is maximally one month per customer, equal 50 per cent of the regional minimum wage times the number of laborers facing work suspension. Each customer can take up a loan for at most three months during the period of April 1-December 31, 2020. Lending interest rate is zero per cent per year. Overdue debt interest rate is 12 per cent per annum. The lending term is 12 months. The disbursement of VBSP is implemented until January 31, 2021.

vbsp.org.vn