Press Release: The lending interest rates for near poor households and some policy credit programs has been decreased from June 5th, 2015

(VBSP News) On June 1st, 2015, the Prime Minister issued the Decision No. 750/QĐ-TTg on adjusting to decrease the interest rates of some policy credit programs.

Specifically, the interest rates of lending to poor households, job creation, migrant workers abroad for limited terms and disadvantaged students decreased from 0.6%/month to 0.55%/month (6.6%/year); The interest rates of lending to safe water and rural environment sanitation, business and production households living in extremely disadvantaged areas.

The General Director of VBSP also recently has issued the Document on the implementation for lending interest rate to near poor households and some policy credit programs. Accordingly:

- The interest rate of lending to near poor households under the program for near poor households prescribed in Decision No. 15/2013/QĐ-TTg dated February 23^rd, 2013 of the Prime Minister is equal to 120% of the lending interest rate for poor households prescribed in each period. Thus, the lending interest rate for near poor households reduces from 0.72%/month (8.64%/year) to 0.66%/month (7.92%/year).

- The lending interest rate for poor households in the poor districts 30a reduces from 0.3%/month to 0.275%/month (3.3%/year).

- The lending interest rate of migrant workers abroad for limited terms in poor districts (according to Decision No. 71/2009/QĐ-TTg of the Prime Minister) for poor households and ethnic minority households decreases from 0.3%/month to 0.275%/month (3.3%/year); for the remaining customers reduces from 0.6%/month to 0.55%/month (6.6%/year).

- The lending interest rate of forest sector development program decreases from 0.6%/month to 0.55%/month (6.6%/year).

- The lending interest rate of project: “Inclusive finance: small finance for businesses employing, serving or owned by persons with disabilities (Nippon)” decreases from 0.6%/month to 0.55%/month (6.6%/year).

- The lending interest rate of project on providing microfinance services for HIV-infected and affected people and former drug users reduces from 0.6%/month to 0.55%/month (6.6%/year).

- The lending interest rate of RIDP project reduces from 0.6%/month to 0.55%/month (6.6%/year).

- The lending interest rate for traders doing business in disadvantaged areas decreases from 0.8%/month to 0.75%/month (9.0%/year).

- The lending interest rate for poor households according to local standards applying in Ho Chi Minh City, Hanoi City, Da Nang City and Binh Duong province reduces from 0.72%/month to 0.66%/month (7.92%/year).

- The lending interest rate for near poor households according to local standards applying in Ho Chi Minh City, Hanoi City, Da Nang City and Binh Duong province reduces from 0.864%/month to 0.792%/month (9.504%/year).

The above lending interest rates are applied to new loans (including revolving loans) from June 5^th, 2015.