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Project transparency key requirement in loan applications
Companies, especially small- and medium-sized, need to hire a prestigious consulting firm to draft a feasible project plan if they hope to get bank credit, a financial executive told a seminar in HCM City on Jun 03 on obtaining bank loans.
Diep Dung, Director of the State Financial Investment Company, said firms seeking to borrow should also have transparent accounts.
Nguyen Tan Binh, Deputy Head of the Leadership and Management Science Research Institute – Leadman SRI, said transparency was a key requirement for banks in approving loans to businesses. Besides, borrowing firms needed to demonstrate capital efficiency and human resources to the bank, and, ideally, sales potential, he said.
"If a project is large, they need to demonstrate its benefit to the economy or society," he said.
Tran Buu Long, Deputy Director of the HCM City Credit Guarantee Fund for Small and Medium Enterprises, said there were many support programmes offering businesses loans on easy terms.
For investment in projects that act to stimulate demand, the city subsidised loan interest by 50 per cent, he said. The maximum loan amount available for such projects was VND100 billion (US$4.8 million) and the maximum term, seven years, he said.
The projects could be in areas like manufacture of machinery and automobile tyres and food processing, he said.
The city was considering setting up a Technology and Science Development Fund to support businesses in innovating machinery and equipment, he added.
Dung said the State Financial Investment Company would back vocational training projects and construction of roads, hospitals, schools, wastewater treatment plants, and housing for low-income people. It would also join hands with development and investment funds in other provinces to support businesses around the country.
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