Finance - Banking

From September 2, increase the loan level for construction of clean water and rural environmental sanitation projects

HA KIEN • July 21, 2024 09:32

According to the Vietnam Bank for Social Policies, Hai Duong province branch, the Prime Minister has just issued a decision to expand the scope and increase the loan level for the rural clean water and environmental sanitation program.

According to new regulations, each household can borrow up to 50 million VND under the rural clean water and environmental sanitation policy credit program.

Accordingly, from September 2, 2024, the maximum loan amount will be increased from VND 10 million/type of construction/household to VND 25 million/type of construction/household. Each household will be able to borrow capital to build, upgrade, renovate, and repair 2 types of clean water and environmental sanitation works.

The scope of loans is supplemented with the town areas of the districts (ie households in the communes and towns of the districts can borrow capital under this program).

The interest rate and loan term remain the same as the old regulations. Specifically, the maximum loan term is 5 years (60 months), the loan interest rate is 9%/year.

According to statistics from the Vietnam Bank for Social Policies, Hai Duong branch, at the end of June 2024, the outstanding credit balance of the clean water and rural environmental sanitation program in the whole province was more than 1,116 billion VND, accounting for nearly 22% of the total outstanding credit balance of the policy. In the first 6 months of 2024, the whole province had 10,650 households borrowing capital from this program, building 21,300 clean water and sanitation works in rural areas.

HA KIEN