Unsecured loan cap for farmers to increase from July 1

Farmers can get loans of up to VND300 million ($12,000) without collateral from July 1 this year as part of efforts to promote agriculture and rural development as regulated by a new Government decree.

The Vietnam News Agency has quoted the State Bank of Vietnam as reporting that under Government Decree No.156/2025/ND-CP which has amended Decrees No.25/2015/ND-CP and  No.116/2018/ND-CP on credit policies for agriculture and rural development,  the unsecured lending ceiling for households and individuals will increase from VND100–200 million to VND300 million.

For cooperative groups and household businesses, the cap is extended to VND500 million.

Farm owners can borrow up to VND3 billion ($114,000) from previously VND1–2 billion while cooperatives and alliances will be able to borrow up to VND5 billion ($190,000), up from VND1–3 billion as regulated by the previous decrees.

The new decree also simplifies loan procedures. Accordingly, borrowers are no longer required to submit certificates proving their land use right is dispute-free. The submission of land use right certificates will be handled based on agreement between borrowers and banks rather than being made compulsory.

Notably, the decree expands credit incentives to include organic and circular agriculture, allowing them to access preferential terms similar to those of high-tech and value-chain based agricultural production.