ACLEDA finds big market in Lao micro finance
ACLEDA finds big market in Lao micro finance
ACLEDA Bank Lao Ltd has become a major loan provider for small businesses in Laos as the country promotes the establishment of SMEs.
The bank's Managing Director and CEO, Mr Narin Phon, told local media last week that since the bank opened for service in 2009 through to June this year, it has provided loans to small businesses totaling US$191 million so that they can use the funds to expand their businesses.
The amount of each loan ranged from 300,000 kip to 8 million kip. About 37,000 families have benefited from the loan facility, he said.
Mr Narin said that the ACLEDA bank had a policy to provide loans to small businesses, creating conditions for them to expand and grow.
The policy of the bank is in line with the Lao government policy for small and medium enterprises to have access to investment funds to expand their businesses, which will create jobs and income for Lao people so that they can grow out of poverty.
Access to finance is one of the things operators of small and medium d enterprises identified as a challenge for them to st art and expand their business. The Lao government has acknowledged this problem and is trying to create conditions for foreign banks to open in Laos.
There are more than 30 commercial banks in Laos and most of them are foreign including ACLEDA bank.
Mr Narin said that ACLEDA Bank Lao Ltd not only offered loans to small businesses but also helped them to get the loan more easily, adding that the bank has cut a number of documentation processes so that the businesses would find it easier to get the loan.
He said people who asked for loans from the bank would get loan approval and money within a few days, which he said was faster than other commercial banks.
He also said that to enable small businesses to access investment funds, the bank had set up a team to send bank officials to offer loans at the homes of their customers, adding that the move will help customers as they no longer h ave to travel to the bank to apply for the loan.
He said that a group of small business people did not need assets to guarantee the bank loan because they can use only their group identity instead.
At present, the ACLEDA bank has 34 offices, one headquarters, 7 branches and 26 service units. These offices cover, Vientiane, Vientiane province, Luang Prabang, Xayaboury, Borikhamxay, Khammuanm Savannakhet, Champassak, Saravan, Xekong and Attapeu.
vientiane times
