Poor ethnic minority households are entitled to a preferential loan of 40 million VND to build a house

Deputy Prime Minister Le Minh Khai has just issued a decree on policy preferential credit implement the National Target Program on socio-economic development in ethnic minority and mountainous areas for the period from 2021 to 2030.

Accordingly, beneficiaries of loans to support residential land and houses include: Poor households ethnic minority; poor households of Kinh ethnic group who reside legally in extremely difficult communes, especially disadvantaged villages in ethnic minority and mountainous areas.

Borrowers must fully satisfy the following conditions: Legally reside in the locality and be on the list of households that are eligible for housing and housing support policies approved by competent authorities; Representative members of households who are 18 years of age or older, have full civil act capacity as prescribed by law; Having a loan plan suitable for the purpose of using the loan.

Poor ethnic minority households are entitled to a preferential loan of 40 million VND to build a house. Illustration.

Customers are entitled to borrow capital to use to cover the cost of acquiring residential land, the cost of building new or repairing or renovating houses.

The loan amount shall be agreed upon by the Bank for Social Policies and the borrower but shall not exceed VND 50 million/household (for residential land support loans), VND 40 million/household (for housing support loans). live).

The loan term is agreed upon by the Bank for Social Policies and the borrower, but the maximum is 15 years. In the first 5 years, customers have not had to pay the principal. Loan interest rate is 3%/year. Overdue debt interest rate is equal to 130% of loan interest rate.

The Decree also stipulates investment loans and supports the development of precious medicinal herbs growing areas. Accordingly, enterprises, cooperatives, unions of cooperatives, households and organizations in extremely difficult areas in ethnic minority areas are entitled to a loan of not more than 96 billion VND to grow precious medicinal herbs; no more than 92 billion VND with the project of breeding center for precious medicinal herbs.

The condition is that enterprises have a plan to invest and use loan capital to grow or propagate precious medicinal herbs. The Bank for Social Policies will appraise the loan plan; maximum loan term of 10 years; interest rate 3.96%/year; overdue debt interest rate is equal to 130% of loan interest rate.

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