Former inmates to be provided with bank loans to restart their lives

From October 10, people released from prison will be entitled to borrow up to VND 100 million from the Bank for Social Policies within five years after their release for getting back to production and trade activities.

Under Prime Minister Decision 22/2023/QD-TTg dated August 17, eligible for the loans are those who have completely served their imprisonment sentences and have been granted certificates of prison sentence completion and amnesty recipients who have amnesty certificates.

These former inmates are also requested to comply with law and refrain from involving in social evils as certified by commune-level public security offices.

Meanwhile, those wishing to borrow loans for the purpose of improving their occupational skills may borrow up to VND 4 million per month.
 

Under the new rule, production and business establishments, including small- and medium-sized enterprises, cooperatives, cooperative groups and business households that have at least 10 percent of their employees being former inmates who satisfy the aforementioned conditions will also have access to bank loans.

Every project employing former inmates may borrow no more than VND 2 billion and up to VND 100 million per employee.

Household representatives of former inmates will act as loan borrowers to conduct transactions with the Bank for Social Policies.

In case where there is no household member aged full 18 years or older or where other household members no longer have working capacity or full civil act capacity, a former inmate himself will act as the borrower.

Former inmates may actually receive loans from the Bank for Social Policies through its entrusted socio-political organizations, while production and business establishments may get such loans directly from the Bank.

Former inmates and production and business establishments are ineligible for loans in case they are currently indebted to the Vietnam Bank for Social Policies under other credit programs for the purpose of job training, business and production operation or job creation.

By: Vietnam Laws & Legal Forum