* Workers borrowing at VBSP:
- Lending via households: Head of household is the representative in getting loan from VBSP and making repayment, the representative shall be the mother/father or another member of the household who is 18 years old or above certified by local CPC.
- In case the worker is single, he/she shall directly get a loan from VBSP and take responsibility for repayment.
* Recruiter:
- Enterprises having licenses granted by Ministry of Labor, Invalids and Social Affairs to take workers working abroad for limited terms and representatives that such enterprises give authorization to recruit workers to go working abroad.
- Employers abroad
- Workers: employees to go working abroad for limited terms.
* Labor contract:
- Official contract signed between the recruiter and workers on working abroad for limited terms.
* Target clients:
- Wives (husbands), children of revolutionary martyrs.
- War invalids (includes: Level B war invalids acknowledged from 31 December 1993 and earlier, now called soldiers suffering from accidents at work ); people receiving policy beneficiaries as for war invalids, people lose working capacity from 21% and over (hereinunder called invalids)
- Wives (husbands), children of the invalids.
- Children of Heros of the armed forces, heros of labor; children of people involved in the resistance, people supporting the resistance and acknowledge with medals; children of people joining the resistance before August 1945 .
- Labors coming from poor households as stipulated by the Law.
* Lending conditions:
- Borrowers have legal residence at the locality where the lending VBSP locates.
- Have certification from the local CPC that the borrowers are policy beneficiaries. If a borrower is not beneficiary of social welfares managed by the CPC he/she shall show certified documents such as: the invalid card, certifications etc.) for the CPC to certify.
- Have formal acceptances of recruiters to go working abroad for limited terms.
* Loan size:
- Maximum is VND 30,000,000/labor
* Loan terms:
- Determination of loan terms depends on: working duration aboard stated in the labor contracts and repayment capacity of the borrowers but not exceed the working duration aboard in the labor contracts.
* Loan utilization:
- To pay for essential legal fees, expenditures to go working abroad according to contracts signed between recruiters and labors such as: training tuitions, conctract counselling fee, deposits, one-way ticket from Vietnam to the destination country, and other necessary fees as stated in the labor contracts.
* Lending interest rate:
- 7.8%/year for loan taken before May 1, 2009. From May 1, 2009 to December 31, 2011 the interest rate is: 3.8%/year.
- Over due rate equals to 130% of the contract rate.
* Lending methods:
- Borrowers (including via households and directly in case the borrowers are single) are free from collateral but must joint in SCGs, being nominated by such SCGs, and named in the loan application list which is sent to CPC for certification.
- Lending is partially entrusted to mass organizations in adherence to prevailing entrust mechansism applied to lending to the poor and other policy beneficiaries of VBSP.
*Loan Extension:
- By the due date, if borrowers are facing objective difficults which make them unable to repay debts, VBSP shall consider loan extension.
- Loan extension procedures: The borrower fills in the loan extention application form (form 09/TD) and send to the lending VBSP for consideration of loan extension.
- Loan extension duration: loan extension can be conducted one or several times but its maximum duration shall not exceed 1/2 of the loan duration stated in the Loan contract.
