Reduce loan interest rates for poor households, pupils and students

The Prime Minister has just signed Decision No. 872/QD-TTg dated June 6, 2014 adjusting and reducing lending interest rates for a number of policy credit programs at the Vietnam Bank for Social Policies.

Accordingly, the lending interest rate for poor households, job creation, and policy beneficiaries working abroad for a limited period (according to Decision No. 365/2004/QD-NHNN) is adjusted to 7.2%/year (0.6%/month). This regulation replaces the regulation in Section 1, Section 2 of Document No. 1212/TTg-KTTH dated August 24, 2005 of the Prime Minister on handling a number of issues related to the activities of the Social Policy Bank.

Loan activities to create jobs of the Social Policy Bank of Da Nang city. (Source: Da Nang Newspaper)

Also according to the Decision, the loan interest rate for students is 7.2%/year (0.6%/month). This regulation replaces the regulation in Clause 2, Article 1 of Decision No. 853/QD-TTg dated June 3, 2011 of the Prime Minister on adjusting the loan level and loan interest rate for students.

The Decision takes effect from the date of signing and applies to new loans from the date this Decision takes effect./.

Section 1, Section 2 of Official Dispatch No. 1212/TTg-KTTH dated August 24, 2005 of the Prime Minister stipulates: The lending interest rate for poor households and other policy beneficiaries is 0.65%/month. The lending interest rate for poor households in Region III and especially disadvantaged communes in mountainous, remote and isolated areas is 0.6%/month.

Clause 2, Article 1 of Decision No. 853/QD-TTg dated June 3, 2011 of the Prime Minister stipulates: Adjusting the lending interest rate prescribed in Clause 1, Article 7 of Decision No. 157/2007/QD-TTg dated September 27, 2007 of the Prime Minister on credit for pupils and students as follows: Preferential lending interest rate for pupils and students is 0.65%/month.

According to the Communist Party of Vietnam