Businesses start to get loans at 2%/year interest rate

Deputy Prime Minister Le Minh Khai has just signed Decree No. 31 dated May 20, 2022 on support interest rate from the state budget for loans from enterprises, cooperatives and business households.

Accordingly, Decree 31 clearly states that enterprises, cooperatives and business households are entitled to interest rate support (referred to as customers) in one of the following cases:

For the purpose of using loan capital in one of the registered business sectors specified in the Prime Minister’s Decision No. 27 dated July 6, 2018 promulgating the system of Vietnamese economic sectors, including: air, transportation, warehousing, tourism, accommodation services, catering, education and training, agriculture, forestry and fishery, processing industry, manufacturing, software publishing, microcomputer programming computing and related activities, and information service activities.

In addition, the loan is used for the purpose of implementing projects to build social housing, housing for workers, and renovate old apartment buildings on the list of projects compiled and announced by the Ministry of Construction.

Conditions for interest rate support are that the customer has requested interest rate support and meets the loan conditions in accordance with the current law on lending activities of credit institutions, foreign bank branches. out to customers.

The loan with interest rate support 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 capital for the right purpose. according to regulations and have not received interest rate support from the state budget according to other policies.

The loan shall not continue to receive interest support in case the principal balance is overdue and/or the late payment interest balance is not eligible for interest support for the interest payment obligation at the interest payment term that The point of repayment is within the period of overdue principal balance 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.

In addition, the loan extension is not supported with interest for the debt extension period.

The Decree stipulates the period of interest support from the date of loan disbursement to the time the customer pays off the loan principal and/or interest according to the agreement between the commercial bank and the customer, in accordance with the economic source of the loan. The interest rate support fee is announced, but not beyond 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 also stipulates that the interest rate support must ensure publicity, transparency, right objects, right purposes, and avoid policy profiteering. Commercial banks provide interest rate support to ensure compliance with regulations, creating favorable conditions for customers.

The 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 May 20, 2022. 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.