Thursday, September 20 2018

VietNamNews

Credit limits for farmers without mortgages doubled

Update: September, 12/2018 - 15:00
A farm in southern Bình Phước Province uses an automated watering system. - VNA Photo
Viet Nam News

HÀ NỘI – The Vietnamese Government has doubled the credit limits for farmers who seek loans without mortgage assets, as part of efforts to boost rural and agriculture development.

According to Decree 116/2018/NĐ-CP dated September 7, individual farmers, farming households and farming cooperatives living and owning farming businesses in rural areas would be given maximum loans of VNĐ200 million without mortgage assets. This doubles the previous credit limit.

For those not living in rural areas but running farming businesses in rural areas, the maximum loan was increased from VNĐ50 million to VNĐ100 million.

The new decree also regulated credit policies to encourage hi-tech agricultural production. Accordingly, those with farming projects applying high-tech methods in production could receive loans without mortgage assets equivalent to 70 per cent of their project’s costs.

Việt Nam is striving to restructure the farming sector with a focus on promoting hi-tech agricultural production for sustainable development.

Credit policies for the rural and agricultural sector have played an important part in the country’s poverty reduction policies over the last decade. – VNS

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