The Fund, as a bridge connecting business to credit institutions, will provide SMEs credit guarantee and thus help them to access to funding sources. Its operations are not-for-profit, ensuring self-reliance, capital safety and development.
The Fund has initial charter capital of VND 38 billion, funded from Lang Son province local budget (VND 30 billion) and the rest from local enterprises.
Applicants eligible to credit guarantee are local SMEs meeting the following conditions: having project with minimum investment up to VND 2 billion or business plan cost up to VND 500 million. Project or business plan shall be efficient and bankable; their mortgage value at commercial bank represents at least 15% of loan value; contribution from project owner at least 15% equity of total investment; there are no overdue debt to state budget as well as no non-performing loans at commercial banks at the time of guarantee application submission.
To each project, business plan, the maximum guarantee coverage does not exceed 70% of the total investment; and for each client, 15% of the Fund equity; total guaranteed outstanding does not not exceed five times the actual charter capital of the Fund. /.