The Farmers Support Fund with the purpose of lending capital is lending under the Household Group Project to build economic development models in order to expand and improve the scale of production and commodity production, creating different types of agricultural products. goods and services of high quality in the direction of the association, cooperation for collective economic development, cooperatives create large goods, gradually overcome small-scale production. Therefore, if the farmer-member households have different purposes for using capital but have a need to borrow money, the Commune Farmers’ Union can introduce those households to loan groups so that they can access capital from commercial banks in the area. So, what does a loan application for a farmer support fund include? How are the loan procedures and procedures carried out? Today, LSX Lawfirm will give you an article about “Dossier to borrow funds from the Farmers Support Fund in Vietnam”, as follows:
What is the Farmer Support Fund?
Farmers’ support fund is understood as a type of fund aimed at:
– Firstly, Support and assist farmer members in building and replicating economic development models for poverty alleviation; raise production scale and produce goods, develop professions; contribute to economic restructuring and development of collective economic forms in rural areas; create jobs, and promote the application of technical advances and new technologies to agricultural production, exploit the potentials and strengths of each region to create a variety of quality and efficient agricultural products, goods and services high fruit.
– Secondly, Create conditions for Vietnam Farmers’ Association to promote activities, propagate and gather farmers, and successfully implement economic development programs of the Party and State for agricultural development and rural construction. to improve farmers’ lives and build a strong association.
Dossier for loans from the Farmers Support Fun
An application file for a loan from the farmer support fund includes:
- Minutes of the meeting of the farmers’ association
- Loan application form cum capital use plan (applicable to households, cooperative groups)
- Minutes of the meeting of households participating in the People’s Fund loan project
- Questions about borrowing funds to support farmers then.
- Loan projects (applicable to Projects of Household Groups, Cooperative Groups, Cooperatives) L
- ist of households applying for loans
- Minutes of project appraisal (applicable to projects of Household groups, cooperative groups, and cooperatives) then.
- List of households that have assessed to be eligible for loans
- Loan application form
- Loan contract (applicable to households, cooperative groups, cooperatives) then.
- Disbursement minutes
- List of households receiving loans
- Minutes of checking loan use
- Notice of overdue debt transfer
- Authorization contract with the Commune Farmers’ Association
- List of collection fees for HTND
- Entrustment contract between the Central People’s Union Fund and the Provincial People’s Union.
Documents in the application for a loan from the Agricultural Support Fund are kept
– For the application for loans from the Farmers Support Fund, the records to kept include:
- Minutes of meeting members of the loan project.
- The borrower’s loan application letter cum business plan has approve.
- Loan project, together with a list of loan applicants.
- Project appraisal minutes; loan approval decision of the Standing Board of the Farmers’ Association at the same or higher level.
- List of Borrowers approved for loans;
- Entrustment contracts, loan entrustment.
- List of fees for loans to the Farmers Support Fund; types of decisions, loan notices, debt collection, debt extension, overdue debt transfer, debt settlement at risk…
- Other relevant documents.
Conditions to get a loan from the Farmers Support Fund
To be eligible for a loan from the Farmers Support Fund, the borrower must meet the following conditions:
- For households: the head of the household or the representative of the household must be a member of the Vietnam Farmers’ Union
- For cooperative group members, cooperative members must be founded by a member of a farmer’s association
- Borrowers must have civil legal capacity, civil act capacity, and take civil liability in accordance with the law, specifically:
- Having a legal residence address, the head of household or the representative of the household must have the full civil legal capacity and civil act capacity.
- The purpose of using the loan is lawful
- Have the financial ability to pay the debt within the committed period
- Having a feasible production, business, or service project and plan, certified by the commune-level People’s Committee and approved by a competent association.
Borrowers from the Farmers Support Fund
The Farmers Support Fund provides loans to the following subjects:
1. Firstly, Farmer’s member households voluntarily participate in group projects to borrow capital for production and business development under the direction and guidance of Farmers’ Associations at all levels;
2. Secondly, Members of cooperative groups of farmers’ members, members of agricultural production and business cooperatives;
3. Thirdly, Other subjects when there is a decision of the Central Committee of the Vietnam Farmers’ Association.
Borrowers specified in this Article are collectively referred to as Borrowers.
What fields and industries do the Farmer Support Fund lend to?
The Farmers Support Fund provides loans to the following 4 areas and industries:
1. Firstly, Agriculture, forestry, fishery, and salt production.
2. Secondly, Developing trades and handicrafts.
3. Thirdly, Processing and consuming agricultural, forestry, aquatic products, and salt.
4. Finally, Trading in products and services serving agricultural, forestry, fishery, salt production, and farmers’ lives.
How is the loan term determined?
The loan term is based on:
- Firstly, the purpose of using a loan
- Secondly, the Production and business cycle
- AndBorrower’s financial ability
- Thirdly, Funds from the Farmers Support Fund
Currently, the Farmers Support Fund applies two types of loan terms as follows:
Short-term loans: loans with a term of up to 12 months.
Medium-term loans: loans with terms from 12 months to 36 months.
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The Central Farmers Support Fund regulates the repayment of principal and loan fees as follows:
– Firstly, Pay the principal at the end of the loan term. Borrowers can pay the principal once when they no longer need to use the capital during the loan term.
– Secondly, Payment of fees is paid in installments, up to 3 months/per term.
+ In case the borrower pays the principal before the due date, the payable fee is only calculated from the date of receiving the loan to the date of principal repayment.
+ For loans that do not pay the principal and fees on time but cannot be extended, the borrower must pay the fee according to the overdue debt fee.
Debt cancellation conditions:
+ Firstly, Capital is at risk due to objective reasons.
+ Secondly, Has taken advantage of all possible sources of payment.
– The amount of principal write-off and fee for the borrower is equal to the amount the borrower has to pay to the Farmers Support Fund after the Farmers Support Fund has applied recovery measures.
– Firstly, Farmer Support Fund activities are not for profit but must preserve and develop capital and cover management costs.
– Secondly, take self-responsibility for the Fund’s operations before the law; comply with regulations on financial and credit operations in accordance with the State’s current regulations.
– Thirdly, the Farmer Support Fund is not allowed to raise capital and borrow capital in the form of savings deposits, issue valuable papers, or borrow capital from organizations and individuals such as credit institutions.
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