EXTREMELY DISADVANTAGED ETHNIC MINORITY HOUSEHOLDS

* Lending purposes:

- Providing loans to extremely disadvantaged ethic minority households to develop production, settle down and soon overcome poverty.

*Target clients:

- Ethnic minority households (including households with only wife or husband as an ethnic minority person) live in disadvantage areas.

- Having income equaling to 50% of income of a poor household.

- Total assets of the household is not over VND 3,000,000 (regardless of value of land-using right, of tent(s) on the hill farms, of house(s) granted by the State or other credit organizations).

- Having a productive plan but being in shortage or lack of capital for implementation.

* Lending principles:

- The consideration of eligible ethnic minority households is conducted publicly, democratically and properly. Eligible borrowers shall be listed at each commune. Annually, the list of borrowers is reviewed to add or delete such households that are no longer eligible clients of this program.

- Lending shall base on a productive plan and a specific commitment of each household or a group of households in attachement to guidance on doing business/production of authorities and mass organisations at various levels; more disadvantaged households are prior to borrow first.

- Lending is partially entrusted to mass organizations.

* Loan types and size:

- Borrowers can borrow loan one or several times.

- Total loan amount shall not be over VND 5 million/household, borrowers are exempted from collateral and any loan procedure fees.  

- In case a household wants to borrow over VND 5,000,000, policies of the Lending to poor households program regulated at Decree No 78/2002/ND-CP dated 4th October 2002 of the Government are applicable.

* Loan term:

- 60 months at maximum.

* Lending interest rate:

- 0%

* Risk handling:

- Households cannot make repayment as the result of natural calamities, fire, epidemic diseases, or other unavoidable difficulties, Commune People’s Committee shall make a certification report  to district VBSP,  the district VBSP shall collect reports, combine and sent to the District People’s Committee for approval and send to provincal VBSP. Finally,  the province VBSP will clarify, synthesize and submit to the provincial people’s Commitee to consider writing off the loans.