Loan procedures for building flood shelters

700 poor households in 14 communes severely affected by floods in 7 provinces: Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Nam, Quang Ngai and Phu Yen will receive loans from the Vietnam Bank for Social Policies to build flood shelters.

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Implementing Decision No.716/QD-TTgAccording to the Prime Minister's decision, the Vietnam Bank for Social Policies has planned to mobilize capital to lend to the above subjects to build flood shelters with a maximum amount of no more than 10 million VND/household.

The above households will be able to borrow at an interest rate of 3%/year, with a loan term of 10 years, including a grace period of 10 years, a repayment period of 5 years starting from the 6th year, and a minimum annual repayment of 20% of the total loan amount.

The Social Policy Bank will provide loans in a partially entrusted manner through socio-political organizations. The entrusted lending mechanism is similar to lending to poor households and other policy beneficiaries.

Disbursement directly to borrowers

The Policy Bank said that in the case of borrowers who are eligible to borrow capital from this program and are members of the Savings and Loan Groups currently borrowing capital from programs of the Social Policy Bank, if they have a need, they can still continue to borrow capital from this program.

In case the borrower is not a member of the Savings and Loan Group, he/she must join the group and be admitted by the Savings and Loan Group so that the borrower is eligible to apply for a loan from the Social Policy Bank.

Households wishing to borrow capital write a Loan Application and a plan for using the loan and send it to the Savings and Loan Group.

The savings and loan group, together with the socio-political organization and the commune-level poverty reduction committee, organizes a meeting to compare the names of loan applicants with the list of households eligible for loans approved by the district-level People's Committee, then compiles a list of households requesting loans with a loan application form and sends it to the commune-level People's Committee for confirmation.

After receiving confirmation from the Commune People's Committee, the Savings and Loan Group will send the Social Policy Bank a list of loan requests along with the Loan Application Form and loan usage plan to complete the loan procedures.

The Social Policy Bank affirms that it will review and approve loans, ensuring direct disbursement to borrowers on the approved list.

Depending on specific conditions, the lending bank can choose to disburse directly in cash to the borrower or transfer money to buy supplies and materials, if requested by the borrower, for households to build their own flood shelters.

According to (Chinhphu.vn)-LT