Farmers get increased loans without collateral
Individuals and households residing in rural areas can borrow up to 200 million VND (old regulation maximum 100 million VND).
The Government has just issued Decree 116/2018/ND-CP amending and supplementing a number of regulations on credit policies serving agricultural and rural development.
Accordingly, the Government decided to increase the loan level for individuals, households, cooperatives, business households, cooperatives, cooperative unions and farm owners without collateral.
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| Maximum 100 million VND for individuals and households residing outside rural areas with production and business activities in the agricultural sector. |
Specifically, individuals, households, cooperatives, business households, cooperatives, cooperative unions and farm owners are provided with unsecured loans by credit institutions at the following levels:
- Maximum of 100 million VND for individuals and households residing outside rural areas with production and business activities in the agricultural sector (old regulation maximum of 50 million VND) (except for individuals and households investing in industrial crops and perennial fruit trees).
- Maximum 200 million VND for individuals and households residing in rural areas (old regulation maximum 100 million VND).
Regarding credit policies to encourage high-tech agricultural production, customers with projects and production and business plans in high-tech agricultural zones and high-tech agricultural regions will be considered by credit institutions for loans without collateral up to 70% of the value of the project or plan.
The Decree also adds a provision that enterprises that have not been granted a certificate of high-tech agricultural enterprise but have a project or plan for production and business applying high technology or a high-tech agricultural zone will be considered by credit institutions for loans without collateral up to a maximum of 70% of the value of the project or plan.
Credit institutions are allowed to receive assets formed from loan capital of projects, production and business plans applying high technology in agriculture and other assets as collateral for customer loans according to the provisions of law.
