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Laos: Bank launches new credit scheme
Phongsavanh Bank is launching the Quick Cash Phase 2 credit scheme today to mark the bank's fifth anniversary next March.
“We predict that in phase 2 of the scheme we will issue loans to 20,000 households per year with financial resources of not less than 200 billion kip per year, and we envisage that this will increase annually,” the bank's Deputy Managing Director Mr Bounthanh Vongsoury said at a press conference on Friday.
Mr Bounthanh said the bank expects financial resources to increase from 200 billion kip to 300 billion or 400 billion kip in the future, depending on customer growth.
Phase 2 runs on from phase 1, which offered more options to existing and potential customers to access financial resources for innovative business opportunities and to improve their living conditions, he said.
Since the bank introduced phase 1 at the end of 2009, it has had a very strong feedback from both government officials and the private sector, and through service implementation
In phase 1, the bank issued loans to over 14,000 households and issued loans of over 200 billion kip, which served to ease the daily cost of living for soldiers, police officers and others.
“Phase 1 was launched only in Vientiane, but phase 2 will operate in both Vientiane and the provinces,” Mr Bounthanh said
Under the second phase of the scheme, existing customers will be entitled to apply for more loans of up to 40 million kip while new customers will be entitled to apply for loans of 5 million to 20 million kip.
The conditions for issuanc e of a loan are simple. The bank certifies the applicant's source of income, salary or other guaranteed funding in the case of government employees, soldiers and police officers. Other applicants have to show proof of their collateral.
The scheme aims to support the government's policy on poverty reduction in order to gradually improve living conditions in Laos.
Phongsavanh Bank, which opened in Vientiane in March 2007, is a private, licensed bank providing financial services to individuals, businesses, and government agencies.
The bank launched fixed deposit accounts in September to mark its fifth anniversary and provide more services. It aims to attract more customers through activities such as entering account holders in lucky draws with the chance of winning attractive prizes, including a house with land, pick-up trucks, personal accounts, gold medals, return flights from Vientiane to Bangkok, and cards for use at fuel stations.
In June the bank launched a new product and service centre, SME Pro, to provide services to nine sectors of small and medium sized enterprises.
vientiane times
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