The State Bank’s Binh Duong branch in cooperation with North Tan Uyen district People’s Committee just held a conference to launch the Bank–business connection program in the district.
.jpg)
Rep of BIDV Binh Duong inks deals with partners.
The connection program helps create opportunity of approaching loans with preferential interest rates for enterprises, contributing to maintain production and business in the difficult period of economy.
Difficulties shared
At the conference, Binh Duong branch of Bank for Investment and Development of Vietnam (BIDV) signed a deal of increasing credit level and developing new clients. These loans will be disbursed from now till the end of this year with the interest rate of 8% per year. This is part of the preferential lending program for business clients of BIDV Binh Duong.
Rep of BIDV Binh Duong said that in order to support individual clients and households, from the early Sept. of this year to March 31, 2015, BIDV has launched the VND5,000 credit package for production and business operation of clients. Accordingly, clients joining in the credit package enjoy preferential loans with the interest rate of only 7% per year.
Besides, this bank has launched many other attractive credit programs for exporters, small and medium enterprises. Simultaneously, BIDV Online exempts finance and annual fees in the first year and reduces 10% of BIC Binh An premium.
Earlier, 5 businesses and 5 credit organization branches signed direct loan support, of which new businesses enjoyed a VND 5.5bil loan with the interest rate of 8-8.5% per year and more.
Meanwhile, credit organizations' lending rates for local businesses also reduced 0.5-1% per year compared with the common interest rate. Accordingly, short term lending rate was at 8-9% per year and 10-11% per for middle and long term loans.
Helping businesses and banks develop
Shortage of collateral security, low assessment of asset value, harsh legal procedure, difficulty of loan approach and more were referred by businesses at the meeting. Some enterprises said that owing to difficult economy, businesses could not pay debts.
Pham Manh Cuong, owner of a farmstead in Tan Uyen town intended to collateralize his 30 ha rubber plantation but bank only offered a VND50mil loan for him. Value of land using right certificates is very low, so it can not meet businesses' demand on loan. In the other hand, output of breeding products is decreasing and rubber latex's price also is reducing strongly while banks set out lending rate of 8% per year. This interest rate is very high compared with rate of profit of breeding and farming sectors.
Cuong suggested that banks should base on market situation to apply a proper lending rate. In addition, banks need to offer consultancies for individual households, positively cut lending rates to help businesses develop production and business.
Like other businesses, Nguyen Thi Tham, the owner of Tan Thanh Trade-Production-Construction Company in Tan Dinh commune, Tan Uyen town eagerly inked the deal of increasing credit level. She said that the conference connected banks and businesses to solve difficulties of loans.
Addressing the conference, Nguyen Van Dong, rep of the State Bank's Binh Duong branch said that despite adjustment of lending rates at banks, enterprises, especially small and medium companies and owners of farmsteads in remote areas face obstacles in approaching loans. Conversely, banks encounter difficulties in meeting with these subjects. Therefore, the State Bank's Binh Duong branch makes efforts to link with businesses and banks to solve difficulties in a bid to help businesses approach loans easily.
Reported by T.HONG - Translated by A.C
