Favourable Credits to Businesses

 

For its parts, Asia Commercial Bank has credit collateral programme or SMEs from credit fund (SMESC). The programme is to help upgrade and expand businesses lacking collateral assets. It also encourages businesses investing in sectors with less environment pollution. Accordingly, businesses can borrow US$25,000-100,000 or equivalence in Vietnamese dong. After investing, businesses can receive back 25 per cent of the loan value if reducing at least 50 per cent of the environment pollution, or 15 per cent for reduction of 30-50 per cent.

 

An Binh Bank has reserved VND1,500 billion for SMEs with interest rate 95 per cent that of other commercial banks. If the collateral is in real estate, the loan can be up to 80 per cent of the value of the asset, while in non-real estate it is 65 per cent. Mr Pham Quoc Thanh, Deputy Director General of An Binh Bank said that the bank is diversifying products suitable to business activities o SMEs, minimizing evaluation formalities and ensuring earliest disbursement.

 

Likewise, Vietnam International Bank (VIB Bank) has studied business practice, problems and demands to design appropriate products. It also defines business credibility from the first transaction to apply preferential interest rates.

 

A foreign bank, HSBC, has also applied measures to support SMEs in working capital : one, interest rate is based on disbursement and daily basis and payment noted in account sheet; second, short-term credits from one week to 12 months is applied monthly payment of interests.

 

Other supporting measures are also provided by commercial banks: ABBANK assisting in efficient use of capital and evaluation of key economic sectors, businesses of the same sector, investment opportunities, etc. The assistance is most appreciated by businesses for its practical needs.