As of now, not many banks approve loans up to 100% of the value of collateral, due to each bank’s risk appetite. With the launch of the online mortgage product for SME businesses to borrow up to 100% of the value of collateral up to VND 20 billion, VPBank has increased capital access opportunities for diverse business entities. This demonstrates VPBank’s efforts in providing truly effective and practical support to SMEs. In addition to businesses that have been operating for a long time, VPBank is also ready to support newly established enterprises, as the bank understands the capital difficulties that businesses face in the early stages of startups when they have not yet established their brands and have not found their footing in the market.
By digitizing the loan process, VPBank has helped SMEs take full control of the borrowing process, from initial steps such as registering the loan purpose to critical steps such as providing documents related to collateral and finally, the disbursement step. Allowing businesses to take the initiative in implementing these steps and, especially, explaining clearly during the online process has given customers a sense of peace and trust due to the transparency and speed of file processing in the system.
“As a pioneer in the market in accompanying SMEs, we always set ourselves the task of truly understanding the worries of businesses and then designing realistic policies. Therefore, VPBank’s online lending product with a limit of up to 100% of the value of collateral is expected to break down capital barriers for young, small-scale enterprises that have existed for many years. We expect to maintain our number 1 position in products for SMEs in the coming years,” said a VPBank representative.
Financial experts advise businesses with capital needs to carefully study the market’s lending policies before deciding on a lender, as the loan may be tied to the business for at least 12 months (if borrowing working capital supplements) or even up to 15 years (if borrowing to purchase fixed assets). During this time, market developments can be unpredictable (changing interest rates, collateral values fluctuating due to market influences, etc.). Therefore, choosing to partner with a bank should be calculated based on three main factors.
First is the bank’s scale, which is crucial as it determines the stability of lending rates and the bank’s liquidity.
Second is the bank’s experience in capital allocation for SMEs, as this segment has its own peculiarities and is often greatly influenced by the market. Therefore, if a bank lacks sufficient experience and time to empathize with businesses, it will be challenging to develop appropriate policies to help enterprises timely cope with temporal challenges.
Third is the loan processing procedure. Due to the nature of SMEs, there may be times when rapid capital is needed, either to seize an excellent order or even to purchase a fixed asset at a bargain price. Hence, if a bank’s process is not swift enough, businesses may miss golden opportunities to generate profits.
VPBank aims to maintain its leading position in providing products and services for SMEs in the upcoming years.
Currently, VPBank is one of the banks that can best meet the above criteria. In terms of scale, the bank has the largest chartered capital in the system. Regarding experience, the bank has more than 10 years of accompanying hundreds of thousands of SMEs with diverse products and services. When it comes to loan processing procedures, VPBank is also a pioneer in applying digitization with a series of improvements, including online mortgages for businesses, which is a typical example in the current context. Experts evaluate this product as superior because it is operated online, with quick approval within two days of completing the dossier, and it is transparent, allowing customers to proactively monitor the progress in the system. These factors are plus points for businesses to confidently choose to accompany the bank on a long journey.
Interested businesses can contact VPBank at 1900 234 568 for specific advice or visit https://smeconnect.vpbank.com.vn/dangky/ThechapOnline to register for loan advice.
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“The loan is just the icing on the cake,” said the anonymous business representative, using a fitting analogy. With this additional funding, the company plans to expand its operations and take its business to the next level.
