On 23/9/2019, the Government enacted Decree No. 74/2019/ND-CP on amending and supplementing a number of articles of Decree 61/2015/ND-CP on employment promotion policies and the National Fund for Employment, directed towards increasing preferential loans from the National Fund for Employment granted to small and medium-sized enterprises, cooperatives, co-operative groups, business households and laborers. Particularly:
Eligible borrowers and lending limits
- Laborers: VND 100 million maximum (currently, VND 50 million).
- Businesses: maximum VND 2 billion/project and not exceed VND 100 million for 1 laborer whose job is created, maintained or expanded (currently, maximum VND 1 billion/project and not exceed VND 50 million/1 laborer).
Security measure
Regarding loans of VND 100 million or more, businesses and laborers who borrow loans for oversea working under contracts must have security properties as prescribed by the law on security transactions.
Lending term
- The preferential lending term by the National Employment Fund is up to 120 months (currently, the maximum is 60 months).
- The specific lending term will be agreed between the Vietnam Bank for Social Policies and borrowers based on the funding sources, business cycles and the borrower’s solvency.
Lending interest rate
For the subjects specified in Article 12.1 of the Law on employment, the lending interest rate will equal to the one applicable to near-poor households as prescribed by the law on credit. (currently, the lending interest rate is equal to the one for poor households).
