Zero Interest Funds for SMEs

Interest free lending project, funded by the US-based ABS Fund, has recently been introduced by the Centre for Economic Development Studies under the Economics School, Vietnam National University of Hanoi.

 

Accordingly, Vietnam’s small and medium-sized enterprises (SMEs) can borrow from the fund if they prove their sound financial position, assets to collateralize and good plans to use and repay the borrowing.

 

Mr Do Thanh Long, Deputy Director of the Centre for Economic Development Studies, said ABS will provide a total loan of US$180,000 interest free for northern SMEs, particularly women-led entities. The selection of borrowers will start from October 2010 and the disbursement is scheduled from January 2011. Each company can borrow a maximum of US$20,000 for fixed assets like machines, workshops and production lines.