Conditions for Credit Guarantee Changed

Conditions for credit guarantee will be stricter, according to the regulation on establishment, organisation and operation of credit guarantee fund for small and medium-sized enterprises issued together with the Decision No. 58/2013/QD-TTg dated October 15, 2013.

 

To have VND loans guaranteed at Vietnamese credit institutions, SMEs must have a total collateral and mortgage value equal at least 15 percent of the loan value and have at least 15 percent of owner’s equity in projects and business plans used to apply for loans. Besides, they still have to guarantee conditions of current regulations: Have effective investment projects and business plans and be capable of repaying loans; have no overdue loans and bad debts at the time of being guaranteed.

 

The guarantee of the Credit Guarantee Fund includes obligations for paying principals and interests of loans guaranteed. The maximum guarantee for one client cannot exceed 15 percent of owner’s equity of the Credit Guarantee Fund.