Pursuant to …;

Regarding credit for clean water supply and rural environmental sanitation

______________________

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing Certain Provisions of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to Decree No. 78/2002/NĐ-CP dated October 4, 2002 of the Government on credit for the poor and other policy beneficiaries;

At the proposal of the Minister of Agriculture and Rural Development;

The Prime Minister issues this Decision on credit for clean water supply and rural environmental sanitation. ||| This Decision stipulates the credit policy for clean water supply and rural environmental sanitation to implement the National Strategy on Clean Water Supply and Rural Sanitation until 2030, with a vision to 2045 as per Decision No. 1978/QĐ-TTg dated November 24, 2021.

Article 1. Scope of Regulation

1. Household-scale water supply works.

2. Household-scale environmental sanitation works.

2. Households as specified in Clause 1, Article 4 of this Decision.

Article 3. Creditors

3. Other relevant agencies, organizations, and individuals.

1. Rural areas refer to administrative regions not including urban wards under districts and cities as provided for in the Government's Decree on mechanisms and policies to encourage enterprises to invest in agriculture and rural areas.

Article 3. Explanation of Terms

In this Decision, the following terms shall be understood as follows:

2. Household-scale water supply works refer to facilities, equipment, and tools for exploiting, collecting, storing, and treating water for households.

3. Household-scale environmental sanitation works refer to household sanitation facilities, collection and treatment works for domestic waste, livestock waste, production, and business waste from households.

Article 4. Borrowers and loan conditions

1. Borrowers: Households residing in rural areas where they are registered as permanent or temporary residents (hereinafter referred to as customers).

Article 5. Loan methods

The Social Policy Bank providing loans shall implement entrusted loans through political-social organizations.

Article 6. Loan amount

1. The maximum loan amount is 25 million VND per type of work per customer.

2. Customers may borrow funds to invest in new, upgrade, improve, or repair two types of household water and sanitation works, but the total outstanding debt for each type of work must not exceed the maximum loan amount for each type of work.

Article 7. Currency for borrowing and repayment

Article 8. Loan term

The currency for loan and repayment is the Vietnamese Dong.

The loan term shall be agreed upon between the Social Policy Bank and the customer but shall not exceed five years (60 months).

Article 9. Interest rate on loans

1. The interest rate on loans is 9.0% per annum.

2. The overdue interest rate is 130% of the loan interest rate.

Article 10. Guarantee for loans

Customers borrowing funds pursuant to this Decision are not required to provide loan guarantees.

Article 11. Sources of loan funds

1. Funds raised by the Social Policy Bank, supplemented by the State budget for interest rate and management fee subsidies as prescribed.

2. Local government budget funds annually entrusted through the Social Policy Bank for lending.

3. Other lawful sources of funds.

Article 12. Classification of debts and handling of risky debts

Implementation shall follow the regulations on debt classification and handling of risky debts at the Social Policy Bank.

Article 13. Loan application documents, procedures, and terms for repayment, repayment amounts, extension of debt, and conversion of overdue debt

1. The Social Policy Bank shall guide on loan application documents, procedures, and terms for repayment, ensuring simplicity, clarity, and ease of implementation.

2. Extension of debt and conversion of overdue debt shall be carried out according to the regulations of the Social Policy Bank.

1. Borrowers are responsible for using borrowed funds for their intended purpose and repaying the loan fully and on time to the Social Policy Bank.

Article 14. Implementation Organization

2. The Ministry of Agriculture and Rural Development shall take the lead and coordinate with the Social Policy Bank and relevant agencies in organizing, implementing, and reporting.

3. People's Committees of provinces and centrally-administered cities

a) Annually review and allocate local government budget funds entrusted through the Social Policy Bank for lending as prescribed by law;

b) Direct departments, sectors, and related units to submit to competent authorities for approval of annual local government budget allocation entrusted through the Social Policy Bank for lending;

c) Direct the People's Committees of communes to verify borrowers and eligibility criteria as stipulated in Article 4 of this Decision;

d) Coordinate with the Vietnam Fatherland Front, political-social organizations, and the Social Policy Bank to promote the policy; organize and supervise the implementation of this Decision.

4. The Social Policy Bank

a) Guide on the contents stipulated in Article 13 of this Decision;

b) Manage, raise, and utilize loan funds; monitor the borrowing, usage, and repayment process of customers to ensure that the borrowed funds are used for their intended purpose and are effective as prescribed in this Decision;

c) Coordinate with ministries and sectors, report to competent authorities to promptly address difficulties and obstacles during the implementation of lending as prescribed in this Decision;

d) Coordinate with the Vietnam Fatherland Front, political-social organizations to promote the policy and organize its implementation as prescribed in this Decision.

5. Ministries, ministerial-level agencies, and government agencies shall cooperate with the Ministry of Agriculture and Rural Development and the Social Policy Bank in the organization and implementation of this Decision as prescribed by their functions, tasks, and powers.

Any agency, organization, or individual taking advantage of the policy stipulated in this Decision for personal gain or violating the law shall be liable for compensation, disciplinary action, administrative penalties, or criminal prosecution according to the law depending on the nature and severity of the violation.

Article 15. Handling Violations

An organ, organization, or individual who takes advantage of the policies stipulated in this Decision to seek undue benefits and violates the law shall be liable to compensate, be subject to disciplinary action, administrative sanction, or criminal prosecution according to the provisions of the law depending on the nature and extent of the violation.

Article 16. Conditions for Continuation

1. Customers who have signed a credit contract before this Decision takes effect shall continue to perform according to the contents stipulated in the signed credit contract. In cases where customers fall within the target group, meet the conditions, and have a need, they shall continue to be eligible for loans at the loan amount specified in Article 6 of this Decision.

2. In cases where customers have signed a credit contract, and at the time this Decision takes effect, they no longer belong to rural areas as defined in this Decision, they shall continue to perform according to the commitments, rights, and responsibilities recorded in the signed credit contract with the Social Policy Bank until the contract ends.

Article 17. Effective Date

1. This Decision takes effect from September 2, 2024.

2. This Decision replaces Decisions No. 62/2004/QĐ-TTg dated April 16, 2004.

3. Abolish Decision No. 1205/QĐ-TTg dated September 19, 2018.

4. The Minister, Head of a ministerial-level agency, Head of a government-affiliated agency, Chairman of the People's Committee of provinces and centrally governed cities, Chairman of the Board of Directors, and General Director of the Social Policy Bank are responsible for implementing this Decision.