On May 20, 5, Deputy Prime Minister Le Minh Khai has just signed Decree No. 2022 promulgating policies to support interest rates for loans of enterprises, cooperatives and business households from the state budget. This Decree stipulates the support for loans in Vietnam dong arising from lending activities of commercial banks to customers according to Resolution No. 31/43/QH2022 dated 15/11/ 1 and Resolution No. 2022/NQ-CP dated January 11, 30.
1. Cases eligible for loan package support with 2% interest rate
In 2022, enterprises, cooperatives, and business households that are entitled to support (called customers) to borrow from banks with an interest rate of 2% according to Decree 31 in one of the following cases with the purpose of using loan capital as follows:
- Belongs to one of the registered business sectors including: aviation, transportation and warehousing (H), tourism (N79), agriculture, forestry and fishery (A), accommodation and catering services beverage (I), manufacturing, manufacturing (C), education and training (P), software publishing (J582), computer programming and related activities (J-62), operations information services (J-63).
- Construction activities directly serving the above mentioned economic sectors, excluding construction activities for real estate business purposes (L) specified in the economic sector code under Decision No. 27/2018/QD - TTg.
- Implement projects to build social housing, housing for workers, renovate old apartment buildings under the project synthesized and announced by the Ministry of Construction.
2. Conditions for interest rate support from loans
Customers requesting interest rate support need to meet loan conditions for lending activities of credit institutions, foreign bank branches in accordance with current law.
See more: Bank loan conditions
Loans in Vietnam dong, using capital sources for the right purposes according to regulations and not yet receiving interest rate support from the state budget according to other policies. Signing and disbursing during the period from January 1, 1 to December 2022, 31.
Loans that are not eligible for interest support are the following cases:
- The loan is obligated to repay interest at the interest payment term, which is within the period of overdue principal balance and/or late payment interest balance. After the customer has fully paid the overdue principal balance and/or late payment interest balance, the loan will continue to receive interest support for the next interest payment periods.
- If the loan is extended, the loan extension period will not be supported with interest.
3. Regulations on interest rate support levels
3.1. Support interest rate
The interest rate to support businesses is 2%/year, calculated on the loan balance and the actual interest rate support loan term. At the time of interest payment for each term, commercial banks reduce the amount of loan interest payable by the amount of loan interest supported in the period for customers according to the guidance of the State Bank of Vietnam.
3.2. Interest support period
Term of interest rate support calculated from the disbursement date to the time the customer fully repays the principal and/or interest of the loan according to the agreement between the bank and the customer, in accordance with the announced interest support fund source, but not exceeding December 31, 2023.
The interest rate support applies to interest payment obligations arising in the period from the date of this Decree Valid from May 20, 5 to December 2022, 31 at repayment terms. Commercial banks will stop supporting interest rates after December 31, 12 or when the funding source (support limit) is announced, whichever comes first.
In addition, the Decree clearly states that the support must ensure publicity, transparency, right objects and purposes, and avoid policy profiteering. Commercial banks strictly comply with regulations, creating convenience for customers.
