SMEDF Fund cooperates with VPBank to support businesses with low-interest loans

The cooperation between the Small and Medium Enterprise Development Fund (SMEDF) and Vietnam Prosperity Joint Stock Commercial Bank will help small and medium enterprises access preferential capital with interest rates of 1.2% - 4.4%/year.

SMEDF Fund cooperates with VPBank to support businesses with low-interest loans

The cooperation between the Small and Medium Enterprise Development Fund (SMEDF) and Vietnam Prosperity Joint Stock Commercial Bank will help small and medium enterprises access preferential capital with interest rates of 1.2% - 4.4%/year.

The Small and Medium Enterprise Development Fund (SMEDF) and Vietnam Prosperity Joint Stock Commercial Bank (VPBank) signed a framework agreement on indirect lending to enhance support for small and medium enterprises in accessing low-interest loans.

On the afternoon of October 23, the Small and Medium Enterprise Development Fund (SMEDF) and Vietnam Prosperity Joint Stock Commercial Bank (VPBank) signed a framework contract for indirect lending, aiming to create favorable conditions for small and medium enterprises (SMEs) in Vietnam to access preferential loans.

In Decision No. 12/QD-HDTV dated October 4, 2023, the Small and Medium Enterprise Development Fund announced the lending interest rates. Accordingly, the short-term lending interest rate is 1.2%/year, the medium-term lending interest rate is 4.4%/year and the long-term lending interest rate is 4.4%.

Speaking at the event, Mr. Pham Xuan Kien, Chairman of the Board of Directors of the Small and Medium Enterprise Development Fund, said that SMEs currently account for about 98% of the total number of enterprises in the country, contributing greatly to GDP and creating more than 55% of jobs for society.

The National Assembly and the Government have issued many policies to improve the competitiveness and quality of SMEs, including the Law on Support for SMEs 2017, Decree No. 39/2019/ND-CP dated May 10, 2019 of the Government on the organization and operation of the SME Development Fund and Decree No. 45/2024/ND-CP dated April 26, 2024 on amending and supplementing a number of articles of Decree No. 39/2019/ND-CP.

To implement these policies, the SMEDF Fund has been lending directly or indirectly through capital allocation to commercial banks, with lending targets being innovative start-up SMEs participating in industry clusters, value chains, etc.

In addition, the Fund also supports capacity building for SMEs; receives and manages loans, grants, aid, contributions, and trusts from organizations and individuals to support SMEs to meet sponsor conditions and comply with Vietnamese law; participates in developing policies to support the development of SMEs; and carries out international cooperation activities to support SMEs.

“The Fund’s purpose is to help SMEs innovate and develop highly competitive and environmentally friendly products; invest in and innovate advanced technical equipment and technology; improve corporate governance capacity, in order to fully exploit potential, enhance competitiveness, and consolidate position in the market; thereby creating a premise for the country’s economy to grow steadily,” Mr. Kien stated.

Mr. Pham Xuan Kien said that today's signing event opens the cooperation relationship between SMEDF and VPBank, aiming to become comprehensive partners, ensuring long-term cooperation, based on the advantages of both parties to join hands to support the SME community to develop sustainably according to the orientation of the Party and Government.

Affirming that SMEDF and VPBank share the same mission, Mr. Dao Gia Hung, Deputy Director of SME Division of VPBank, said that SMEs are a key segment in VPBank's development strategy.

“VPBank has been and continues to invest heavily in technology platforms and develop resources to ensure timely provision of digital financial solutions to the market, helping SMEs make full use of capital from banks to seize all business opportunities,” said Mr. Hung.

Expressing his honor that VPBank was trusted by SMEDF to be a partner in supporting capital for SMEs, Mr. Dao Gia Hung affirmed that VPBank will continue to make efforts to research more comprehensive financial solutions, providing capital with more preferential interest rates, more flexible terms and purposes of capital use, especially the time to access capital will be shortened to the maximum thanks to the 100% online appraisal, approval and disbursement process from VPBank.

“We hope to contribute to helping SMEs integrate into the growing economic flow and expect to achieve a growth breakthrough in 2025,” Mr. Hung said.

Source: https://baodautu.vn/quy-smedf-hop-tac-voi-vpbank-ho-tro-doanh-nghiep-vay-von-lai-suat-thap-d228165.html