04 important contents for SMEs to taking out loans for project implementation in Vietnam

04 important contents for SMEs to taking out loans for project implementation in Vietnam

In Circular 06/2011/TT-BKHCN, regulations on the management and use of loan guarantee funds for projects at small and medium-sized enterprises include the following main contents:

1. Entities Eligible for Loan Guarantees

- Small and medium-sized enterprises.

- Energy-saving and efficiency service organizations.

2. Loan Guarantee Limits

- The maximum loan guarantee amount for an energy-saving and efficiency project is 3 billion VND and/or a maximum of 4.5 billion VND for the Guaranteed Party.- The loan guarantee multiple of the Loan Guarantee Fund does not exceed 2 times the available capital and can be adjusted appropriately according to the risk levels of the energy-saving and efficiency projects over different periods.

3. Loan Guarantee Duration

The loan guarantee duration corresponds to the loan term of the Guaranteed Party and does not exceed the capital recovery period for fixed asset investments. The guarantee duration can be extended according to the loan term changes, but it may not exceed 1/3 of the initial guarantee term of the loan.

4. Loan Guarantee Fees

- The maximum guarantee fee is 0.8% per year of the guaranteed amount. Fee collection aligns with the guarantee duration agreed upon in the loan guarantee contract. The Guarantor has the right to decide on the exemption or reduction of guarantee fees in cases where the Guaranteed Party encounters force majeure risks.

- In cases where the Guaranteed Party is late in paying the guarantee fee to the Guarantor, the late payment fee is calculated by adding the total fee due with an interest rate of 150% of the project implementation loan rate multiplied by the late fee amount and the late payment duration.

More details can be found in Circular 06/2011/TT-BKHCN, effective from July 1, 2011.

Thuy Tram

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE