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Updated: 2019-02-26 15:06:12

Credit limit to double for the poor

(VBSP News) The Government will double the credit limit for poor people seeking loans without collateral, as part of efforts to reduce poverty and prevent loan sharks.

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Under a new decision, which will take effect from March 1 this year, poor households will be allowed to borrow a maximum of VNĐ100 million (US$4,300) instead of VNĐ50 million as before, for up to 120 months from the Vietnam Bank for Social Policies (VBSP).

Besides poverty reduction, the new policy on increasing the limits of unsecured loans given by banks to the poor is also aimed to prevent those people from approaching loan sharks with exorbitant interest rates. The number of loan sharks preying on vulnerable people has increased sharply recently and caused adverse impacts on society.

According to the State Bank of Việt Nam (SBV)’s Banking Supervision Agency, loan sharks often target people with unstable incomes, who live in remote areas and need money for healthcare and food. Banks should therefore expand their formal credit to remote areas, helping prevent and repel loan sharks.

In order to prevent loan sharks, SBV Deputy Governor Đào Minh Tú instructed VBSP should also supplement consumer lending programmes to facilitate the lives of poor households, .

According to Tú, it is possible to request such loans and disbursement within one day, meeting the urgent and legitimate needs of borrowers. The goal of this flexible policy is to financially support low-income people and farmers in remote areas so that they don’t look for illegal money lending - VNS  

Accordingly, since March 1, 2019, VBSP formally raises the maximum loan for poor households from 50 million VND/household to 100 million VND / household without loan security. At the same time, raising the maximum loan term to 120 months in accordance with the growth and development process of long-term production and business.

By the end of 2018, total outstanding loans of VBSP reaches over VND 187 trillion; in which, outstanding loan of poor household is 38 trillion VND (accounting for 20.2% of total outstanding loan) with 1.28 million active borrowers.



Poor Households

Lending to poor households 6,6%/year
Lending to poor households in 64 poor districts as stipulated by the Government Resolution No.30a in 2008 3,3%/year

Near Poor Households

Lending to near poor households 7,92%/year


Lending to disadvantaged students 6,6%/year

People in need of loans for job creation

Lending to business establishments owned by war invalids and handicapped persons 3,3%/year


Term Deposit Rate
Overnight 3,04%/year
1 week 3,23%/year
2 week 3,5%/year