From July 25 on, the government’s Decree No. 55 on credit policies to service agriculture and rural development comes into forces. Comparing to current regulations, the decree maintains new features including the prominent feature of wider treatment subjects without distinguishing urban or rural areas. Concurrently, the loans without asset mortgage will be 1.5 to 2 times higher than before.
Treatment to be come true within expectations
The change most approved by people is the indiscrimination of residence localities. Those people living in cities and towns engaging in agriculture activities within rural areas will also become the subjects of preferential loans. The change is tremendously beneficial to residents in newly established districts including Bau Bang and some areas of Thu Dau Mot City.
Banks express more care for loans in agriculture and rural development field. In this photo: Farmers in Hiep An Ward of Thu Dau Mot City are making use of high-tech in cultivation of orchid.
Mr. Truong Cong Pho, a swine farm owner at Cau Sat Hamlet in Lai Hung Commune of Bau Bang District said: “We are farmers in a district in the north of the province, i.e. farmers in rural area. For years, we have acquired loans from agriculture banks and now, the Decree No. 55 will lighten the interest rates, we are so delight. As the input price is low, more profits will come.”
Mr. Vo Van Thuong, at Quarter 6 of Chanh Nghia Ward in Thu Dau Mot Town, is one of the farmers making use of high-tech in discus rearing in modern tanks and filtering systems. He has made a loan of VND 280 million and been so delight by Decree No. 55. He disclosed that before long he had quit seeking for loans due to complex procedures and processes. Now, the Decree No. 55 would give the door open to new opportunities.
Many new features
Mr. Nguyen Thanh Loi, Deputy Chair of Thu Dau Mot City Association of Farmers asserted that the Decree No. 41 formerly ruled on loans at rural areas without considering farmers living in cities who were unable to access credit loans for agriculture development. In the meantime, the needs for loans are still high in the cities, particularly in the stage of agriculture and high-tech promotion. Now, Decree No. 55 has adjusted to allocate benefits equally for more benefits.
Aside from the expansion of subjects beneficial of loans for business operations in agriculture, Decree No. 55 also elevates the loans without asset mortgage by 1.5-2 times higher than before. Besides, no charges or fees is required at certifying agencies for such mortgage contracts. The Decree No. 55 additionally rules on credit policies to promote agriculture development under connected model and high-tech application. Moreover, the Decree is to combine loans with national pivotal program in new rural area construction. Accordingly, the loan resources will be extended to many subjects to invest into rural infrastructure and other investments integrated to new rural construction targets.
In reality, the field of loans for agriculture and rural development has been prioritized by credit and banking institutions in the province. Thus, despite the freshness of Decree No. 55, banks like BIDV, Vietcombank, and HDbank have been rapidly promote the implementation. As informed by Song Than Industrial Park Branch of Agribank, the new regulations offer clear-cut loans regime to simplify document processing and procedures. Currently, the bank is pending for guidance of parent bank to carry out the credit policies to service rural fields under the regulations of Decree No. 55 at the soonest.
Reported by Thanh Hong – Translated by Vi Bao
