New credit momentum for rural areas to take effect soon

The new policy will facilitate peasants’ access to banking credits for production development – Photo: VGP

According to the Decree, since June 1, individuals or households engaging in agriculture, forestry, pisci-culture, and salt production can borrow loans, VND 50 million in maximum, without property guarantee.

Individuals or households providing agricultural services will also be considered to borrow up to VND 50 million.

Banking institutions specializing in agriculture and rural development, small-sized financial organizations, commercial banks, or other Government-founded financial entities will be assigned to conduct the lending activities.

8 sectors to be benefited

- Production costs for agriculture, forestry, aqua-culture, and salt making;

- Jobs creation in rural areas;

- Rural infrastructure development

- Processing and distribution of agricultural, forestry, aquatic and salt products

- Provision of agricultural, forestry, aquatic and salty products and services

- Industrial production and provision of non-agricultural services in the rural areas

- Consumption stimulation in rural areas

- And loans lent under the Government’s economic programs

If borrowers cannot pay their loans off on time because of large-scaled natural disasters and epidemics, the Government will provide specific assistance to hard-hit insolvent individuals and organizations.

By Hải Minh