Farmers can borrow up to 300 million VND without collateral from July 1

According to information from the State Bank on the afternoon of June 20, the Government has just issued Decree 156 amending and supplementing a number of articles of Decree 55/2015 and Decree 116/2018 on credit policies for agricultural and rural development. The new Decree takes effect from July 1.

The policy amendment is to suit reality, meet the growing capital needs of people in agricultural production, and contribute to the overall effort to achieve the goal of accelerating socio -economic development.

One of the notable changes is the increase in the unsecured loan limit for farmers, cooperatives, farm owners...

Specifically, the unsecured loan limit for individuals and households has been adjusted to increase from 100-200 million VND to 300 million VND. For cooperatives and business households, the limit has increased from 300 million VND to 500 million VND.

The limit for farm owners has been increased from 1-2 billion VND to 3 billion VND. As for cooperatives and cooperative unions, the limit has been raised to 5 billion VND instead of 1-3 billion VND as before.

In addition to raising the limit, the Decree also simplifies loan procedures. Accordingly, people do not need to submit a certificate of land without a red book or without disputes as before. The submission of the land use right certificate will be carried out according to the agreement between the bank and the customer, instead of being mandatory.

Notably, the Decree also expands the beneficiaries of credit incentives such as organic and circular agriculture, allowing access to capital and risk management similar to high-tech production models or chain linkages.

The newly added contents in the Decree are: Adding some concepts related to debt forgiveness policy to facilitate debt forgiveness and be consistent with the reality of debt forgiveness in the past; adding credit policies to encourage organic and circular agriculture to enjoy credit policies similar to customers producing high-tech agriculture, linking in agricultural production (regarding unsecured loan levels, risk handling mechanisms) to be consistent with the current trend of agricultural development according to new models under the direction of the Prime Minister .