Borrow 3 billion VND without collateral for the 1 million hectare rice project in the Mekong Delta

The State Bank has directed credit institutions to provide loans to implement the 1 million hectare high-quality rice project in the Mekong Delta with preferential interest rates reduced by 1% and unsecured loan limits of up to VND3 billion.

Rice production in the Mekong Delta

On October 15, at the meeting of the Central Propaganda Department, the representative of the State Bank provided information on the implementation plan of the Project "Sustainable development of 1 million hectares of high-quality rice cultivation associated with green growth in the Mekong Delta region by 2030" (according to Decision No. 1490/QD-TTg of the Prime Minister).

According to the State Bank, the lending program for rice production, processing and consumption will be implemented in two phases. The pilot phase will last from now until the end of 2025, with the Vietnam Bank for Agriculture as the lead agency. The expansion phase will continue from 2026 to 2030 at other credit institutions.

According to the direction of the State Bank, the lending interest rate to implement this project will be reduced by at least 1%/year compared to the normal lending rate. Other preferential policies such as loans without collateral, special debt handling mechanisms and incentives to buy insurance in agriculture will also be applied.

According to the State Bank's guidance, customers participating in rice production linkages will enjoy many credit incentives. The maximum unsecured loan amount can range from VND100 million to VND3 billion, depending on the subject such as individuals, cooperatives or cooperatives. In particular, for agricultural production projects following the linkage model and applying high technology, the unsecured loan amount can reach 70% -80% of the value of the plan or project.

The State Bank has sent a document of guidance to the People's Committees of provinces and cities in the Mekong Delta region and credit institutions to soon implement this directive. However, the ability to disburse depends on the announcement of actual cost norms and the determination of specialized and linked areas (implemented by the Ministry of Agriculture and Rural Development and the People's Committees of localities).

In order to support customers in difficulty, the State Bank has introduced a flexible debt settlement mechanism. Customers facing difficulties due to objective reasons or force majeure can have their debt repayment period restructured while maintaining their current debt group. In cases severely affected by natural disasters, epidemics or large enterprises facing difficulties, banks can apply a debt suspension mechanism to support customers to overcome difficult times.

Along with that, the bank also encourages farmers and businesses to buy agricultural insurance to enjoy preferential loan interest rates. The interest rate reduction can reach a minimum of 0.2% (per year) compared to the normal interest rate of loans of the same type and with the corresponding term.

VAN PHUC

Source: https://www.sggp.org.vn/vay-3-ty-dong-khong-can-the-chap-cho-de-an-1-trieu-ha-lua-tai-dbscl-post763793.html