Raising loan limits to create jobs for young people

According to information from the Social Policy Bank, production and business establishments owned by union members, youth union members, and youth when borrowing capital from the National Employment Fund, the capital source of the Central Youth Union according to Decree 61/2015/ND-CP, will have their loan amount increased.

Illustrative photo. (Source: Vietnam Bank for Social Policies)

Specifically, the maximum loan amount is not more than 1 billion VND (instead of 500 million VND previously) for production and business establishments and not more than 50 million VND (instead of 20 million VND) for 1 employee who is newly employed.

The lending interest rate is equal to the lending interest rate for poor households in each period as prescribed by the Prime Minister (currently 0.55%/month). Production and business establishments employing 30% or more of the total workforce who are disabled or ethnic minorities or both disabled and ethnic minorities shall have the lending interest rate equal to 50% of the lending interest rate according to this regulation.

Loan term is not more than 60 months. For loans over 50 million VND, production and business establishments must have assets to secure the loan according to regulations.

According to the report of the Policy Bank, by the end of January, the outstanding loan balance for job creation from the Central Youth Union channel provided by the Social Policy Bank reached more than 60 billion VND, for 1,473 customers and 959 loan projects, of which 300 projects are production and business establishments./.

According to Vietnam+