Unexpected 0% long-term loan interest rate

(NLDO) – From the city's resources, the Ho Chi Minh City State Financial Investment Company will support 100% of loan interest rates for projects in a number of priority areas.

Conference scene to implement interest rate support policy

On November 8, the Ho Chi Minh City State Financial Investment Company (HFIC) and the Ho Chi Minh City Department of Industry and Trade jointly organized a conference to deploy interest rate support policies for investment projects in four key industries, supporting industries and logistics in the city.

The conference focused on disseminating interest rate policies, creating conditions for businesses to access and guiding loan applications from financial resources of Ho Chi Minh City.

Mr. Nguyen Quang Thanh, Deputy General Director of HFIC, said that the loan program for projects in four key industries, supporting industries and logistics will last for 5 years, targeting 100% domestic enterprises implementing projects in Ho Chi Minh City and public units.

Accordingly, HFIC will lend 200 billion VND with a 0% interest rate, with a 7-year term, for businesses to invest in new machinery and equipment, factories, etc. in the fields of high technology, trade, agricultural production, healthcare, education, environment, mechanization, automation, food processing, textiles, footwear, etc.

The logistics sector alone is supported with 50% interest, meaning the borrower only pays interest on half of the loan amount according to the formula: average 12-month savings interest rate of 4 major banks (Vietcombank, Agribank , BIDV, VietinBank) plus 2%-2.2%.

The disbursement condition is that the enterprise must have a feasible project appraised by HFIC, have collateral, and guarantee the ability to repay the debt...

However, many businesses say the immediate barrier is that they no longer have collateral and may not be able to access loans.

To address this issue, Mr. Thanh said that HFIC is willing to accept mortgages on future assets. However, the value of these assets will be approximately 50% of the value that the business has purchased, from which the loan amount will be determined.

"In particular, businesses with project investment ideas can contact HFIC to consult on the feasibility of that project, to have the opportunity to access 0% interest rate.

Enterprises that are not eligible for interest rate support for investment projects in the four key industries, supporting industries and logistics, but are in the industry group that HFIC is targeting, will be able to borrow long-term capital with the current interest rate of 6.7%/year," Mr. Thanh added.

Source: https://nld.com.vn/duoc-vay-dai-han-voi-lai-suat-0-nhung-doanh-nghiep-van-keu-kho-vi-sao-196241108120235637.htm