SeABank applies 10.99 pct lending rate on SME loans

September 26, 2012 | 08:33

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Southeast Asia Commercial Bank, or SeABank, has set aside a credit line of VND2 trillion with lending rate of 10.99 pct annum to help finance local small and medium-sized enterprises (SMEs).

Le Quoc Long, deputy general director of SeABank, said that all SMEs are able to access this capital source. The preferential rate is applicable in the first month for loans of six months and below and in the first three months for loans of over six months. Customers borrowing U.S. dollars are subject to a rate of 4.5 pct annum and similar conditions.

The program will run till December 31 to further support local enterprises, which have large capital demands at year end for business, imports and goods storage activities. The lender prioritizes enterprises in the fields of consumer goods, food, home utensils, export and import, processing, pharmaceutical and health equipments.

SeABank has recently launched the L/C UPAS (Letter of Credit Usance Paid at Sight) product for enterprises. Using the product, the exporter will be paid by the bank immediately while the importer will enjoy a deferred payment within up to 180 days.

The bank applies interest rate of 3.5 pct during the deferred payment time and finance customers with foreign currencies to pay the L/C.

SeABank saw a decline in credit growth in the first six months of this year although the lender is allocated a credit growth quota of 17 pct in 2012.

SGT

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