Good practices earn firms low-cost loans
Good practices earn firms low-cost loans
Companies with transparent finances, profitability and potential projects may avail of dong loans at 6 – 7 per cent interest, the State Bank of Viet Nam's (SBV's) weekly revealed on Monday.
The lending interest rate for privileged industries is 8 per cent. The five priority sectors include agriculture, export, support industries, small- and medium-d enterprises and high-tech firms.
Other sectors may have to pay 9-10.5 per cent interest per year for short-term loans and 11-12.5 per cent interest for mid- and long-term loans.
The business trend survey of Q2, 2014 for credit organisations by the SBV's Monetary Statistics and Forecast Department reported that the majority of the industries expected lower lending interest rates.
An industry expert stated that enterprises should view the reduction in interest as an opportunity to expand business and production.
Apart from attempts to boost loans for companies in the two economic hubs of HCM City and Ha Noi, the central city's People's Committee of Da Nang late last month decided to offer preferential loans at 7.5 per cent interest to businesses for a one-year period.
Profitable or audited businesses and enterprises without bad debts in any bank in the city can avail of a loan of VND120 billion ($5.7 million) from the city's budget and the Investment and Development Fund. In other words, each eligible business can avail of a maximum loan of VND5 billion ($238,000) once, with strict regulations from this year onwards. The loan will be provided to businesses involved in the stable price programme in the city. Enterprises running at a loss but employing a large workforce can avail of the loan if they propose an effective production plan or provide confirmation of their tax returns and debt payments in the previous years.
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