*Lending purposes:
- To implement the National Rural Clean Water Supply and Sanitation Strategy for the purpose of improving their health and living conditions and promoting socio-economic development in rural areas.
* Lending principles:
- Using the loan properly as stated in loan purpose.
- Repaying principal and interest on time.
* Lending conditions:
- Being permanent resident or having registered long-term residence in a rural area where a VBSP’s Branch Office locate.
- Clean water and environment sanitation works are unavaiable or already available but are neither yet up to the national standards for clean water nor certified by CPC for environment sanitation.
- The household shall not be subject to property mortgage but have to be members of SCG, nominated by such SCG in a loan application list certified by CPC.
* Loan utilization:
- Purchasing materials, paying contruction costs and other necessary costs for building, renovating or upgrading, to ensure National standard of clean water supply and environment sanitation (latrine or latrine with biogaz, breeding facilities; sewage and rubbish disposal at rural production village area).
* Terms of loan:
- The maximum term of loan shall be up to 60 months.
* Lending interest rates:
- 10.8%/year for loans taken before 1 May 2009.
- 6.8%/year for loans taken from 1 May 2009 to 31 December 2011.
- Overdue debt rate is 130% of the normal interest rate.
* Loan size:
- The maximum loan for each construction is VND 4,000,000/household.
* Loan extension:
- In case a household cannot make repayment on time due to natural calamities causing damages to the household’s contruction or making impacts to their living which lead them to difficulties in debt repayment, and the household has a loan extension proposal certified by CPC (form 09/TD), VBSP shall consider 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.
