Enterprises, cooperatives and business households are supported with interest rate of 2%/year

Decree 31/2022/ND-CP clearly states that enterprises, cooperatives and business households can interest rate support (referred to as customer) in one of the following cases:

Firstly: Having the purpose of using the loan capital in one of the registered business sectors specified in Decision No 27/2018/QD-TTg dated July 6, 2018 of the Prime Minister promulgating the system of Vietnam’s economic sectors, including: Aviation, transportation and warehousing (H), tourism (N79), accommodation and food services (I) ), education and training (P), agriculture, forestry and fishery (A), processing industry, manufacturing (C), software publishing (J582), computer programming and operations related (J-62), information service operations (J-63); including construction activities directly serving the above-mentioned economic sectors but excluding construction activities for real estate business purposes specified in economic sector code (L) under Decision No. 27/ 2018/QD-TTg.

Secondly: Having the purpose of using the loan capital to implement projects to build social housing, housing for workers, renovate old apartment buildings on the list of projects compiled and announced by the Ministry of Construction.

The Decree stipulates that the conditions for receiving interest rate support are: Customers have requested interest rate support, meet loan conditions in accordance with current laws on lending activities of credit institutions, foreign bank branches to customers.

The second is an interest-supported loan, which is a loan in Vietnam Dong, signed a loan agreement and disbursed in the period from January 1, 2022 to December 31, 2023, using the right capital. prescribed purposes and have not been supported by interest rates from the state budget under other policies.

Third, the loan cannot be continued interest rate support In the following cases: Loans with overdue principal balance and/or late payment interest balance are not eligible for interest support for the interest payment obligation at the interest payment term but the time of repayment is within the balance period. overdue principal and/or overdue interest balance. The loan can only continue to receive interest support for the next interest payment terms after the customer has fully paid the overdue principal balance and/or the late payment interest balance.

Loan extension cannot be extended interest rate support for the grace period.

The interest rate support period is from the date of loan disbursement to the time when the customer pays off the loan principal and/or interest as agreed between the commercial bank and the customer, in line with the funding source for interest support. rates announced, but not exceeding December 31, 2023.

The support interest rate for customers is 2%/year, calculated on the loan balance and the actual interest rate support loan term is within the period specified above.

By the time of repayment of each interest payment term, the commercial bank shall reduce the amount of loan interest payable to the customer by the amount of loan interest eligible for interest rate support in the period according to the guidance of the State Bank of Vietnam. Male.

The Decree clearly states that the interest rate support must ensure publicity, transparency, right subjects, right purposes, and avoid policy profiteering.

Commercial banks provide interest rate support to ensure compliance with regulations, creating favorable conditions for customers.

Job interest rate support applies to interest payment obligations at interest payment terms that arise during the period from the effective date of this Decree (May 20, 2022) to December 31, 2023.

Commercial banks will stop supporting interest rates after December 31, 2023 or when the funding source (interest support limit) is announced, whichever comes first.