Banks lower interest rate, continue with stringent loan conditions

08-May-2012 Intellasia | HCM City Law | 11:11 AM Print This Post

Although the State Bank of Vietnam (SBV)’s Circular No 14 on lowering the lending interest rate is to take effect from May 8, in the market, from May 7, some banks agreed to lend at the loan rate of 15 percent per year for prioritised borrowers.

Meanwhile, enterprises still have to meet loan conditions to access bank loans. Therefore, ineligible firms still find it hard to borrow capital at banks.

In an interview on the local newswire Phap Luat TP HCM (HCM City Law), Nguyen Hoang Minh, deputy director of SBV’s HCM City branch, said that enterprises who want to borrow capital must prove their financial capacity. Particularly, they must have a part of capital, feasible business plan and prove their solvency. In addition, they must have collateral and transparent financial report.

From May 8, the highest lending interest rate for four prioritised sectors namely agriculture and rural areas, export, supporting industry and small and medium sized enterprises (SMEs) are no higher than 15 percent per year.

Enterprises with collateral but without feasible business plan will also be hard to access bank loans, Minh said.

The central bank has continued to lower the deposit and lending interest rates and controlled the lending interest rate at 15 percent per year. Especially, the central bank has loosened the borrowers in both foreign currency and local currency. However, lending conditions have not be eased because it may cause risks for bank and the economy” Minh said.

 


Category: Finance

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