Lending capital to invest

  1. 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.
  2. The conditions of lending capital: BDIF will decide to lend money if the investor meets the following conditions:
    1. Investment procedures was completed in accordance with the laws.
    2. There are profitable production and business plan, and have to ensure repayment of the debt.
    3. 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).
    4. The investors are the legal organizations or enterprises of all economic sectors.
  3. 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)

  1. Lending interest rates: According to the lending rate’s frame issued by BDIF for each particular moment.
  2. Competence of lending decision:
    1. The People’s Committee of Binh Duong province approves a loan which exceeds 15% of BDIF’s equity capital.
    2. Management council aprroves a loan which exceeds 5% and does not exceeds 15% of BDIF’s equity capital.
    3. BDIF’s Director approves a loan which does not exceeds 5% of BDIF’s equity capial.
  3. Loan security:
    1. Pledge or mortgage the property of the investor;
    2. Pledge or mortgage the assets from loans;
    3. Guarantees by the assets of a third party;
    4. Not be secured by assets;
    5. Other loan security measures in accordance with the provisions of current laws.
  1. 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.