Fixed Asset Loan

Introduction

Fixed asset loans are issued to address the financing demand of the enterprises' fixed asset investment activities. Enterprises' investment activities in fixed assets include: infrastructure construction, technology transformation, new product development and manufacturing and related activities such as house purchase, engineering project construction, technology and equipment purchase and installation.

 

Features

  1. Generally the loan amount is relatively large;
  2. Generally the term is relatively long, most are long or medium term with installment schedule;
  3. On the way of the loan guarantees, except providing the necessary security, generally require taking the new added fixed assets of the project as mortgage;
  4. Regarding the application process, the loans should be applied and approved on case by case basis;
  5. The differences between the fixed asset loans and working capital loans.

 

Item

Fixed Asset Loans

Working Capital Loans

Purpose

Address the financing demand of the enterprises' fixed assets investment activities

Meet the medium- and short-term financing demand of enterprises

Term

One to five years of medium-term loans or more than five years of long-term loans

Short-term loans less than one year or one to three years of medium-term loans

Review Approach

Apply and review case by case

Apply and review case by case or the credit line of the working capital loan which can be easily borrowed, used and repaid within the term and limit specified by the bank

Source of Repayment

The cash flow after project's acceptance of completion or the equity fund of the enterprise

Mainly enterprise's business income

 

Currency

Vietnamese Dong

 

Interest rate

Applied in accordance to the loan interest rate management regulations of the Bank and the provision of contract.

 

Charges

Charges are subject to the contract.

 

Target Customers

Borrowers should be the enterprise (institutions) legal persons, other economic organizations which are approved to the registered by the competent authorities.