Circular No. 4-NH/TT Supplementing Policies and Measures for Loans to Cadres, Workers, Civil Servants, and Cooperative Members in Urban Areas Engaged in Family Economy and Addressing Certain Difficult Cases in Their Lives

CIRCULAR

PURSUANT TO THE DECISION OF THE STATE BANK NO. 4-NH/TT DATED APRIL 8, 1985 SUPPLEMENTING POLICIES AND MEASURES FOR LOANS TO OFFICIALS, WORKERS, EMPLOYEES, AND MEMBERS OF COOPERATIVES IN URBAN AREAS ENGAGED IN FAMILY BUSINESS AND RESOLVING
CERTAIN DIFFICULT SITUATIONS IN THEIR LIVES
CERTAIN DIFFICULT SITUATIONS IN DAILY LIFE

In recent times, loans provided to officials, workers, employees, and members of collective economic organizations in urban areas engaged in family business and resolving certain difficult situations in their lives, according to Decision No. 24/NH/QH dated April 6, 1983 of the General Director of the State Bank, have initially had good effects; those who borrowed have taken advantage of time outside working hours and utilized auxiliary labor to increase products for society and income for their families.

To further implement this loan policy and align with the contents of Resolution No. 6 of the Central Committee of the Party, contributing to enhancing socio-economic efficiency, family economy, and actively addressing difficulties in the lives of workers, especially state officials and military personnel, the General Director of the State Bank supplements the following contents into the policies and measures for loans to officials, workers, employees, and cooperative members in urban areas engaged in family business.

1. For some officials, workers, and employees at agencies who do not have direct production or breeding conditions, branches of the bank where the borrower's family resides may consider providing loans for organizing production and breeding at home if the trade union executive committee and the head of the agency managing the borrower confirm that they have sufficient conditions to effectively implement the economic activities and commit to repaying the debt on schedule to the bank. Military and police officers stationed in provinces and districts with separate household registration at the local level can also be granted loans.

2. Loans for house repairs can be applied to officials, workers, and employees with household registration in towns who genuinely need to repair their houses and have permits from housing management authorities. Initially, priority should be given to loans for repairing houses classified as level 4 or lower, and careful consideration must be made.

3. The person named as the borrower must be the official applying for the loan and the head of the household must sign to bear responsibility for the loan amount. If the borrower cannot repay the debt, the head of the household or the lawful heir of the property must repay it.

4. Given limited capital, priority should first be given to loans for developing family economies for officials, workers, and employees who still have savings deposits in their savings accounts (for borrowers seeking loans for house repairs and purchasing consumer goods, specific deposit requirements will be stipulated below): only after these needs are met should loans be considered for others.

5. Depending on the type of loan, the borrower must ensure they have sufficient self-funded capital as specified in the regulations. This self-funded capital can be in cash, savings account balances, or materials and equipment currently used in production. Specifically, for loans for house repairs, the borrower's self-funded capital must include a savings account balance of at least 50% of the cost of house repairs.

6. For credit to purchase necessary household items and resolve living difficulties, it is now divided into two types:

a) Loans for purchasing certain necessary items for daily life such as transportation means (bicycles), bedding, warm clothing, medicine for treatment or health recovery.

This type of credit does not require self-funded capital. The maximum loan amount is 5,000 dong. The maximum loan term is 12 months.

b) Loans for purchasing household items including:

- Beds, tables, chairs, cabinets (wooden furniture);

- Semiconductor or electronic radios.

The borrower must have self-funded capital, at least 30% reflected in a savings account.

The maximum loan amount is 10,000 dong.

The maximum loan term is 18 months.

The above borrowing needs must be purchased from socialist commerce.

7. For production and breeding loans, the borrower has the responsibility to repay the debt promptly after completing the product, or depending on the borrower's ability, they can commit to monthly repayments using other sources of income.

8. For loans for house repairs, purchasing necessary household items, and purchasing medicines for treatment and health recovery, monthly debt collection continues. Borrowers do not necessarily need to regularly deposit money into a savings account each month to create a repayment source.

9. Other issues shall continue to be implemented according to Circular No. 4-NH/TT dated June 20, 1983.

10. Implementation organization:

Branches of the bank must train and guide staff involved in lending to master the business and enhance their sense of responsibility. Planning work must be prioritized, particularly the establishment and implementation of loan and debt collection targets.

The directors of provincial, municipal, district, and county branches of the State Bank must strengthen inspection work, prevent embezzlement, abuse of loans, or lending contrary to policy and principles. Localities must report monthly and quarterly to the central authority according to the prescribed content and deadlines.