Circular No. 27/2015/TT-NHNN guides the policy on loans for planting production forests and developing livestock breeding, applicable to the Social Policy Bank and the Agricultural and Rural Development Bank. The interest rate is 1.2% per year, with the implementation period ending December 31, 2020.
Scope of application
The Social Policy Bank, the Agricultural and Rural Development Bank of Vietnam; households planting production forests and developing livestock breeding under Government Decree No. 75/2015/NĐ-CP.
Key points
- Households are eligible for unsecured loans from the Banks to plant production forests and develop livestock breeding at an interest rate of 1.2% per year (Article 4).
- The loan interest rate is 1.2% per year (Article 5).
- Households may only borrow from one of the two Banks and must comply with the provincial People's Committee guidelines on determining types of crops and livestock (Article 3).
- The Banks must establish specific regulations regarding loan application documents and procedures for households (Article 6).
- Monthly, the Banks report on the implementation of loans under Government Decree No. 75/2015/NĐ-CP (Article 8).
🌐 Social impact of this document
- To help achieve sustainable poverty reduction and support ethnic minorities through credit policies.
- To provide opportunities for households to plant production forests and develop livestock breeding.
- To ensure risk management in lending activities through the establishment of specific regulations on loan application documents and procedures (positive impact).
- It may impose financial burdens on households if the borrowed funds are not used effectively (negative impact).
❓ Frequently asked questions
How much money can a household borrow?
There is no specific regulation on the maximum amount that a household can borrow, but it is limited to unsecured loans (Article 3).
What is the loan interest rate?
The loan interest rate is 1.2% per year (Article 5).
Where can households obtain loans?
Households can only obtain loans from the Social Policy Bank or the Agricultural and Rural Development Bank of Vietnam (Article 3).
What is the loan term?
The policy implementation period ends on December 31, 2020 (Article 11).
What documents do households need to prepare to obtain loans?
The Banks will establish specific regulations regarding loan application documents and procedures for households, but detailed information is not provided in this document (Article 6).
Full text
CIRCULAR
Guidelines for implementing loans for commercial forest planting and livestock development as prescribed in N |||Decree number Decree No. 75/2015/NĐ-CP dated September 9, 2015 of Cthe Government on mechanisms and policies for forest protection and development, linked to rapid poverty reduction policies and sustainable support for ethnic minority groups during the period 2015-2020
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Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;
Pursuant to the Law on Credit Institutions No.No. 47/2010/QH12 dated June 16, 2010;
Pursuant to Decree No. 156/2013/NĐ-CP dated November 11, 2013, of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;
Pursuant to Decree No. 75/2015/NĐ-CP dated September 9, 2015 of the Government on mechanisms and policies for forest protection and development,developmentlinked to rapid poverty reduction policies and sustainable supportắduring the period 2015-2020;ồ2021 - 2030, phasedevelopmentrom 202No. The guidelines for implementing loans for commercial forest planting and livestock development as prescribed in Decree No. 75/2015/NĐ-CP dated September 9, 2015 of the Government on mechanisms and policies for forest protection and development, linked to rapid poverty reduction policies and sustainable support for ethnic minority groups during the period 2015-2020 (hereinafter referred to as Decree No. 75/2015/NĐ-CP).
At the proposal of the Director of the Department of Credit for Economic Sectors;
The Governor of the State Bank of Vietnam promulgates THE1. The Vietnam Bank for Social Policies, the Vietnam Agriculture and Rural Development Bank (hereinafter collectively referred to as the Bank).FUNCTIONS, DUTIES, POWERS, ORGANIZATIONAL STRUCTURE, OPERATIONAL REGULATIONS, AND RELATIONSHIPS OF MANAGEMENT BOARDS; DUTIES, POWERS OF THE CHAIRPERSON, VICE CHAIRPERSON (IF ANY), SECRETARY, AND MEMBERS OF MANAGEMENT BOARDS2. Households belonging to the target group as stipulated in Clause 1, Article 2 of Decree No. 75/2015/NĐ-CP engaged in commercial forest planting with timber trees, non-timber forest products on land allocated by the State for forest development planning (hereinafter referred to as commercial forest planting); livestock development (hereinafter collectively referred to as households).No. 3. Organizations and individuals related to borrowing from the Bank for commercial forest planting and livestock development as prescribed in Decree No. 75/2015/NĐ-CP.
Chapter I
GENERAL PROVISIONS
Article 1. Scope of Regulation
Article 3. Principles of lending
Article 2. Applicability
1. The Bank shall implement lending to households in accordance with this Circular. Matters not specified in this Circular shall be implemented as follows:
a) The Vietnam Bank for Social Policies shall implement lending in accordance with Decree No. 78/2002/NĐ-CP dated October 4, 2002 of the Government on credit for the poor and other policy targets and relevant laws;
b) The Vietnam Agriculture and Rural Development Bank shall implement lending in accordance with Decree No. 55/2015/NĐ-CP dated June 9, 2015 of the Government on credit policies for agricultural and rural development and relevant laws.
2. Households may only borrow unsecured loans for commercial forest planting and livestock development as prescribed in Article 4 of this Circular from one of the two Banks and must comply with the guidance of the provincial People's Committee regarding the identification of tree species and livestock breeds based on local conditions.
Article 4. Policy for lending for commercial forest planting and livestock development
Households shall be granted unsecured loans by the Bank for commercial forest planting and livestock development as prescribed in Clause 1 and Clause 2, Article 8 of Decree No. 75/2015/NĐ-CP.
b) The Vietnam Agriculture and Rural Development Bank shall implement loans in accordance with the provisions of Government Decree No. 55/2015/NĐ-CP dated June 9, 2015 on credit policies to support agricultural and rural development and related laws.
2. Households are only eligible to borrow unsecured funds for planting production forests and developing livestock breeding in accordance with Article 4 of this Circular at one of the two Banks and must comply with the guidance of the Provincial People's Committee on identifying tree species and livestock breeds suitable to the actual conditions of the locality.
Chapter II
SPECIFIC PROVISIONS
Article 4. Loan policy for planting production forests and developing livestock breeding
Households are entitled to borrow from banks without collateral for planting production forests and developing livestock breeding as stipulated in Clause 1 and Clause 2 of Article 8 of Government Decree No. 75/2015/NĐ-CP.
Article 5. Currency and Loan Interest Rates
1. The currency for loans shall be the Vietnamese Dong.
2. Households may borrow funds to plant production forests and develop livestock with an interest rate of 1.2% per year.
Article 6. Loan Application Documents and Procedures
1. Based on the provisions of this Circular and relevant laws, banks shall establish specific regulations regarding loan application documents and procedures for households seeking loans, ensuring simplicity, clarity, and ease of implementation.
2. In cases where a loan is refused, within ten working days from the date of receipt of the complete loan application package as stipulated by each bank, the bank must notify the borrowing household in writing, clearly stating the reasons for the refusal.
Article 7. Debt Restructuring and Risk Management
1. Debt restructuring and risk management at the Vietnam Social Policy Bank shall be carried out in accordance with Decision No. 50/2010/QĐ-TTg dated July 28, 2010, issued by the Prime Minister on the mechanism for handling risky debts at the Vietnam Social Policy Bank and related legal provisions.
2. Debt restructuring and risk management at the Vietnam Agriculture and Rural Development Bank shall be implemented in accordance with Decree No. 55/2015/NĐ-CP dated June 9, 2015, issued by the Government on credit policies to serve agricultural and rural development, and the guiding documents thereof.
Article 8. Information Reporting
1. Monthly (before the tenth day of the following month), the Vietnam Social Policy Bank and the Vietnam Agriculture and Rural Development Bank shall compile the situation of loans for planting production forests and developing livestock according to Decree No. 75/2015/NĐ-CP and send it to the State Bank of Vietnam (Credit Department for Economic Sectors) using Form 01 attached to this Circular.
2. Monthly (before the tenth day of the following month), branches of the Vietnam Social Policy Bank and the Vietnam Agriculture and Rural Development Bank in provinces and centrally-administered cities shall report the situation of loans for planting production forests and developing livestock according to Decree No. 75/2015/NĐ-CP in their respective localities to the State Bank of Vietnam branch in the province or centrally-administered city where they are headquartered using Form 02 attached to this Circular.
Chapter III
IMPLEMENTING PROVISIONS
Article 9. Responsibilities of Banks
1. To develop credit plans and capital mobilization plans to ensure the implementation of loans to households in accordance with Decree No. 75/2015/NĐ-CP and this Circular.
2. To establish and publicly display loan application documents and procedures for households seeking loans.
3. To monitor, inspect, and supervise the use of borrowed funds and to urge the timely repayment of debts in accordance with Decree No. 75/2015/NĐ-CP, this Circular, and related legal provisions.
4. To report to the State Bank of Vietnam and the People's Committee of the province or centrally-administered city about difficulties and obstacles encountered during the implementation of loans so that they can be promptly reviewed and resolved.
1. Department of Credit for Economic Sectors:
a) To be responsible for monitoring and compiling the implementation status of lending activities under Decree No. 75/2015/NĐ-CP;
b) Take the lead and coordinate with related units to handle any issues arising during the implementation of this Circular.
2. Banking Inspection and Supervision Authority:
Banking inspection and supervision agencies and State Bank branches shall carry out inspections, supervision, and handle violations by lenders in compliance with Decree No. 75/2015/NĐ-CP and this Circular when implementing loans for investment in planting production forests and developing livestock within their authority.
3. State Bank branches in provinces and centrally-administered cities:
To monitor the situation of loans for planting production forests and developing livestock as stipulated in Decree No. 75/2015/NĐ-CP by the Vietnam Social Policy Bank and the Vietnam Agriculture and Rural Development Bank in their respective areas to report to the State Bank of Vietnam when requested; to advise the provincial or centrally-administered city People's Committee on handling issues arising during the implementation of loans. In cases exceeding their authority, they shall promptly report to the State Bank of Vietnam (Credit Department for Economic Sectors) for review and resolution.
Article 11. Implementation Organization
1. This Circular takes effect from December 22, 2015.
2. Where there are multiple credit support mechanisms for the same content, this Circular shall apply; for households still having outstanding balances under other preferential policies, they shall continue to implement according to the terms of the signed loan agreement.
3. The signing of loan agreements between banks and households in accordance with this Circular shall be valid until December 31, 2020, and the contents agreed upon in the loan agreements, as well as any amendments or supplements to the loan agreements (if any), shall continue to be implemented until their expiration.
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