Loan for value chain-based production development support for ethnic minority and mountainous regions

Decree No. 28/2022/ND-CP dated April 26, 2022 of the Government on preferential credit policies for implementation of the National target program on socio-economic development of ethnic minority and mountainous regions in the 2021-2030 period, the first phase: 2021 – 2025.

Borrowers include poor households, near poor households; (Manufacturing, Processing, Trading) enterprises, cooperatives participating in value chains that employ ethnic minorities equal to 70% or more of the total number of employees.

Borrowers must fully meet the following conditions:

- For poor households and near poor households: must meet conditions for loan borrowing under the credit programs applicable to poor households, near poor households that are implemented in the VBSP, be included in the list of members participating in value chains approved by a competent agency and have a loan borrowing plan in conformity with the loan use purposes.

- For enterprises and cooperatives:

+ Be established and operate legally, have a loan use plan to participate in value chains and have the participation in value chains approved and certified by a competent agency.

+ Have a loan borrowing plan that is appraised by the VBSP before a competent agency’s approval.

+ Perform the loan security under regulations of the VBSP and law regulations on security transactions.

The loan size and loan terms applicable to poor households and near poor households participating value chains under this Decree shall comply with current regulations on credit programs for poor and near poor households VBSP. On the other hand, the loan size for enterprises and cooperatives participating in value chains must not exceed 2 billion VND/borrower. The maximum loan term is 5 years

The interest rate applicable to poor households shall be equal to 50% of the production and business loan interest rate applicable to poor households specified in each period. The loan interest rate applicable to near poor households, enterprises and cooperatives participating value chains shall be equal to 50% of the production and business loan interest rate applicable to near poor households specified in each period.

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