Small and medium enterprises can borrow capital at an interest rate of 1.2%

About 600 billion VND in loans with interest rates from 1.2 - 4.4% have been disbursed through the Small and Medium Enterprise Development Fund.

The above information was provided by Ms. Tran Thanh Thuy - Head of Enterprise Support Department, Small and Medium Enterprise Development Fund (Ministry of Planning & Investment) at the seminar "Solutions to support small and medium enterprises in Hanoi to improve access to capital".

Providing more information about the Small and Medium Enterprise Development Fund, Ms. Thuy said that this is a non-budgetary state financial fund, operating not for profit. The fund supports small and medium enterprises through the following activities: lending, capital funding and capacity building support.

The Fund's support objects are small and medium enterprises operating in the fields of: Creative startups, participating in industry clusters and participating in value chains.

The most notable point is that small and medium enterprises can borrow capital from the Fund at preferential interest rates that are always lower than those of state-owned commercial banks and are kept fixed or reduced if policies change during the loan period. Currently, short-term loan interest rates: 1.2%/year, medium-term loan interest rates: 4.4%/year, long-term loan interest rates: 4.4%/year.

The maximum loan interest rate shall not exceed 80% of the total investment capital of each project or production and business plan. The total loan amount for a small and medium enterprise shall not exceed 15% of the actual charter capital of the Fund.

Small and medium-sized enterprises must ensure that their equity capital participating in projects and production and business plans is at least 20% of the total investment capital to implement projects and production and business plans, and must ensure sufficient capital to implement projects and production and business plans.

Currently, the Fund has signed framework contracts for indirect lending activities with 6 banks: BIDV, MBBank, SHB , Sacombank, Bac A Bank, HDBank and plans to continue expanding with a number of other commercial banks.

"The loan term is no more than 7 years, the maximum grace period is 2 years (for medium and long term). At the same time, businesses can proactively repay the debt early and are exempt from early repayment fees," Ms. Thuy informed.

Although the loan guidance process is very clear, Ms. Tran Thanh Thuy - Head of Business Support Department of Small and Medium Enterprise Development Fund pointed out some difficulties in the process of businesses accessing the Fund's capital.

Accordingly, some businesses have refused to borrow capital indirectly due to concerns about sharing information with third parties. In addition, there are difficulties in providing loan documents: Financial reports, social insurance payment documents, loans for investment in machinery and equipment requiring legal documents of the factory where the equipment is located, environmental impact assessment reports, etc.

"If there is no proof of social insurance payment for workers, the Fund will not approve the business's loan application," Ms. Thuy emphasized.

Also on this issue, Mr. Dinh Ngoc Dung - Director of Corporate Banking - SHB Commercial Joint Stock Bank (one of six banks participating in the lending activities from the Fund) also pointed out a number of reasons why businesses are "afraid" to access capital from the Small and Medium Enterprise Development Fund.

"Because the loan application must meet the appraisal requirements from the bank as well as the Fund, while the enterprise wants to quickly access capital, it has refused to borrow from the Fund," said Mr. Dung.

In addition, during the appraisal process, banks often provide internal financial reports instead of financial reports sent to tax authorities. Meanwhile, financial reports sent to tax authorities are a prerequisite when accessing loans from the Fund.

Mr. Dung proposed that the Small and Medium Enterprise Development Fund coordinate with banks to speed up the appraisal process of customers' loan applications. As well as stipulate a relatively specific time period for notifying the results when submitting the application to the bank and the Fund so that businesses can have a financial plan...

Speaking at the program, Mr. Mac Quoc Anh - General Secretary of the Hanoi Association of Small and Medium Enterprises said that with the coordination goal of the Small and Medium Enterprise Development Fund, Saigon - Hanoi Commercial Joint Stock Bank, the Hanoi Association of Small and Medium Enterprises in the coming time will further diversify financial services, preferential support channels, and open up more opportunities to realize loans so that businesses can deploy most effectively.

At the same time, affirming his readiness to participate as well as his commitment to best implement support activities for small and medium enterprises in the future. Mr. Mac Quoc Anh affirmed that the Association will accompany and make efforts to support enterprises to access capital through the Small and Medium Enterprise Development Fund.

According to Thuy An/VTV

Source: https://doanhnghiepvn.vn/doanh-nhan/doanh-nghiep-nho-va-vua-co-the-vay-von-voi-lai-suat-1-2/20240711114841957