- Eligible for loans from BDIF are investment projects in the list of socio-economic infrastructure sectors prioritized for development investment in the locality promulgated by the People’s committee of Binh Duong province after obtaining approval from the People’s council of Binh Duong province.
- The conditions of lending capital: BDIF will decide to lend money if the investor meets the following conditions:
- Investment procedures was completed in accordance with the laws.
- There are profitable production and business plan, and have to ensure repayment of the debt.
- Undertaking to purchase insurance for properties which are formed from loan (in case these properties must be bought the compulsory insurance at an insurance company in Vietnam).
- The investors are the legal organizations or enterprises of all economic sectors.
- The period of lending:
– Short term: Under 12 months
– Middle term: From 12 months to under 36 months
– Long term: Over 36 months (but a maximum of 15 years, People’s committee of Binh Duong province decides the lending of the projects which have the period of lending over 15 years)
- Lending interest rates: According to the lending rate’s frame issued by BDIF for each particular moment.
- Competence of lending decision:
- The People’s Committee of Binh Duong province approves a loan which exceeds 15% of BDIF’s equity capital.
- Management council aprroves a loan which exceeds 5% and does not exceeds 15% of BDIF’s equity capital.
- BDIF’s Director approves a loan which does not exceeds 5% of BDIF’s equity capial.
- Loan security:
- Pledge or mortgage the property of the investor;
- Pledge or mortgage the assets from loans;
- Guarantees by the assets of a third party;
- Not be secured by assets;
- Other loan security measures in accordance with the provisions of current laws.
- Syndicated lending:
BDIF may act as the focal point in syndicated lending, or together with the other local development investment funds, credit institutions and other organizations, provide syndicated loans to projects.