According to this Decree, the interest rate subsidy for enterprises, cooperatives and household business is 2% per year on the loan balance and loan interest subsidy terms in the prescribed periods.
The term for subsidizing loan interest rate shall start from the date of disbursement of a loan to the date on which the borrower pays off the principal in conformity with the announced funding resource for providing the interest subsidy, but it must not exceed December 31, 2023.
To be eligible for the above subsidized interest rate, a borrower needs to meet the following requirements:
- The borrower applies for the interest rate subsidy, meets loan requirements as prescribed by applicable laws on taking loans from credit institutions and foreign bank branches to borrowers;
- The loan is granted in Vietnam dong under a loan agreement and disbursed within the period from January 1, 2022 to December 31, 2023, and not yet provided interest subsidies from the state budget.
Decree No. 31/2022/ND-CP comes into force from May 20, 2022.
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