This new policy has many supporting regulations, with the highlight being a raised limit for loans without collateral. Before, farmers like Ba can only borrow up to 2.3 thousand US dollars, while their actual demand for capital is usually higher. According to the Government’s Decree 55, which will soon come into effect, farmers will be able to take loans of up to 4.6 thousand US Dollars without collateral.
The limit on a loan without collateral for farm households will be raised up to 46 thousand US dollars, depending on the size of the business. This is the highest level so far. The new decree aims to support the value chain model and applications of high technology.
According to the Vietnam Bank for Agriculture and Rural Development, its total loan for farmers in Đong Anh district of Hanoi is about 200 million US dollars. With the new policy, this number is expected to rise 20 percent.
The bank also promised to design different schemes for households with different products, to make sure that the due day for loans is suitable with their harvest time. Decree 55 is expected to provide a boost to the development of the agriculture sector.
