Together with banks, the form of borrowing from people's credit funds in the province has promoted its role in supporting capital for production and business development. So how to get a loan?
In rural and remote areas, people's credit funds are quite popular with people, contributing to promoting production, business and life development. So what is a people's credit fund? How to get a loan from a people's credit fund ? Please consult now!
People's credit funds are credit institutions (credit institutions) voluntarily established by legal entities, individuals and households in the form of cooperatives to carry out a number of banking activities in accordance with law.
People's Credit Funds operate on the principle of voluntariness, autonomy and self-responsibility for the results of their operations with the main objective of mutual assistance among members to effectively carry out production, business, service and improving life.
Currently, in Vietnam, there are nearly 1,200 people's credit funds operating in 57/63 provinces and cities, serving more than 1.6 million members who are individuals and households.
Pursuant to Article 7 of Circular 39, customers can borrow money from people's credit funds when fully meeting the following conditions:
– Customer is a legal entity with civil legal capacity as prescribed by law. Customers being individuals aged full 18 years or older with full civil act capacity as prescribed by law or from full 15 years old to under 18 years old without loss or limitation of civil act capacity as prescribed by law. provisions of the law.
- Demand for loans to use for lawful purposes.
- Have a feasible plan to use capital.
Have the financial ability to repay the debt.
– Customers are assessed by the credit fund as having a transparent and healthy financial situation.
The People's Credit Fund has long become a familiar and closely linked credit institution with people in mutual assistance in developing production, business and life, especially poor households.
One of the methods of borrowing that is of great interest to many people is to borrow a red book mortgage at a credit fund, this form of loan will help borrowers solve all difficulties and stabilize their finances.
The conditions for you to get a red book mortgage at a credit fund are:
● Vietnamese individuals and households.
● Permanent residence or long-term temporary residence registration in the province/city where the credit fund's business unit is located.
● Having secured assets in accordance with the provisions of the credit fund.
● Have a stable income, financial capacity and repayment plan to ensure loan repayment.
The procedure for applying for a people's credit fund loan is quite quick and simple, you need to prepare a set of documents including some of the following documents:
● Loan application form: According to the form of the credit fund.
● Legal documents: ID card/passport, household registration/KT3, marriage certificate/single certificate, etc. of the borrower, spouse and guarantor (if any).
● Proof of income: Labor contract, salary confirmation, house rental contract, car rental, business license, etc. of the borrower and the debtor.
● Proof of property ownership.
According to Clause 2, Article 13 of Circular 39 and Clause 2, Article 1 of Decision No. 1730/QD-NHNN in 2020, credit institutions and customers agree on short-term lending interest rates in Vietnam Dong but not exceeding the interest rate. Maximum loan rate is 5.5%/year to meet some capital needs:
- Serving the field of agricultural and rural development in accordance with the Government's regulations on credit policies for agricultural and rural development;
- Implement the export business plan according to the provisions of the Commercial Law and guiding documents of the Commercial Law;
- Serving the business of small and medium-sized enterprises according to the Government's regulations on support for the development of small and medium-sized enterprises;
- Develop supporting industries according to the Government's regulations on supporting industry development;
- Serving the business of enterprises applying high technology according to the provisions of the Law on High Technology and guiding documents of the Law on High Technology.
The loan interest rate agreement will include the loan interest rate and interest calculation method for the loan.
In case the lending interest rate is not converted to the percentage/year and/or the method of calculating interest based on the actual loan balance, the period of maintaining that actual principal balance, in the agreement The loan agreement must contain the content of the interest rate converted at the rate of %/year (365 days) based on the actual loan balance and the time to maintain that actual loan balance.
* About overdue interest rate
In Clauses 4 and 5, Article 13 of Circular 39, when the customer fails to pay or fails to fully pay the loan principal and/or interest as agreed, the customer must pay interest as follows: :
- Interest on the principal at the agreed loan interest rate corresponding to the loan term but not yet paid;
- In case the customer fails to pay the above interest on time, he/she must pay late payment interest at the rate agreed upon by the credit institution and the customer but not exceeding 10%/year calculated on the corresponding late payment interest balance. with late payment period;
- In case the loan is transferred to overdue, the customer must pay interest on the overdue principal balance corresponding to the late payment period. overdue debt transfer point.
In addition, in case of applying adjustable lending interest rates, credit institutions and customers must agree on the principles and factors to determine the adjusted interest rates and the time to adjust the lending interest rates. If there are factors to determine the adjusted interest rate leading to many other lending interest rates, the credit institution shall apply the lowest lending interest rate.
After the documents and records are complete, the customer will appraise and approve, the time and process depends on each credit fund. You can refer to the red book mortgage loan process at a credit fund, specifically as follows:
● Step 1: Receive customers and make loan documents
The credit officer receives the loan application, verifies whether the customer is a member of the credit fund or not, if not a member, the credit officer will guide the customer to open a membership card. Then guide to complete the loan application.
Credit officers will guide customers to make loan documents, require customers to photocopy their identity cards, household registration books, certificates.
● Step 2: Credit appraisal
The credit officer together with the appraisal officer receives the customer's loan application to check the validity and conduct the appraisal:
● Direct interviews with borrowers.
● Assessing customers, focusing on the following contents: legal status (legal records), methods, capabilities, experience, management and operating organization.
● Reputation of customers and operators, reputation, business advantages and other information for business customers.
● Appraise customers' loan and debt repayment plans such as: loan needs, loan purposes, total capital needs for business plans.
● Determine the repayment plan: Pay monthly interest, pay the principal for how long.
● Appraisal of loan collateral as stated in the loan application such as quality of collateral, ability to convert into cash. Determine the value of the collateral.
Then proceed to make an appraisal report, loan documents to submit to the director for approval for loan customers.
● Step 3: Decide on a loan
Based on the appraisal report and records, the director will make a decision whether to approve the loan or not. If approved, the customer's loan application will be transferred to the credit department.
● Step 4: Sign the credit contract
Upon receiving the approved application from the credit fund director's office, the credit fund director will add the required documents from the loan approval document, merge into the completed dossier for submission to the director for official approval. On the basis of the contracts drawn up by the credit officer, the competent person will together with the customer sign a credit contract and loan security contract (if any).
● Step 5: Disbursement
The loan file signed by the director for approval of the loan is transferred to the accountant to check the loan file and compare the signatures on the papers. After checking the payment slip, transfer to the treasury department to disburse.
● Step 6: Check, monitor and liquidate the contract
Check the customer's withdrawal of loan periodically (if the customer withdraws periodically). The credit fund will consider the loan use situation, production and business situation, loan security status, implementation of commitments, revenue sources and debt repayment ability of customers. It is also possible for the credit fund to make an unexpected inspection if necessary. For each inspection, the credit fund officer will make a report on the customer's loan performance.
It can be said that, if possible, you should choose to borrow from a people's credit fund for the following benefits:
● Lowest loan interest rate in the area
● Highest savings interest rate in the area
● Quick process and procedures
● Professional and caring
● Always support and share difficulties
● Together for local & community development
As can be seen, to get a loan from a people's credit fund, you must meet the conditions as well as go through a strict loan approval process. Therefore, this will not be a useful solution for those who need money urgently.
Above is the information shared about how to borrow money from people's credit funds . Hopefully, the article will help you gain the necessary knowledge to be able to get a successful loan and solve your problem.