Enhance the local progression and stability with loan for the public services of the local administration such as infrastructure construction, tourism, education and improvement of fresh markets, theaters, hotels, ports, commercial buildings or pawn-shops.

Service Features
We offer a special service of free principal repayment period for maximum 3 years case by case with the loan amount based on the necessity and suitability including ability to repay debt.
  • In case of loan for investment, we allow term loan with loan amount of not exceeding the value of purchasing or project construction agreement.
  • In case of loan for working capital, we allow overdrawn loan (O/D) or promissory notes (P/N) by considering from working capital.

Loan is specified to have bondsmen based on the bank policy except for securities mortgage with deferring not to have the fire insurance. Bank needs to be the beneficiary for building structures for the O/D and P/N loan using as the working capital for pawn-shop. Three of Chief Executive of the PAO or Mayor of pawn-shop and member of PAO, or Deputy Major/ Major as the bondsmen are required.

Applicants’ Qualifications
  • Being a local administration classified as Provincial Administrative Organization (PAO) or municipality
  • Having a resolution from the local administration committee and the governor allowing to loan from the bank
  • Having clearly budget, in case of term loan for investment, to repay debt to the bank with the approval according to the policy of the Ministry of Interior
  • Allowing loan to the local administration case by case by analyzing financial statement and working capital of each organization including environment, suitability, earning ability, repayment capacity as the private customers except for receiving the budget support from the government only
Service Terms/ Conditions
  • Loan type: Term loan/O/D loan/P/N loan
    • Purchasing land without clear purpose is not granted
  • Credit Terms
    • In case of Term Loan, the installment will be 20 years maximum
    • In case of O/D loan, maximum one year period with revising the loan amount every year according to bank policy
    • In case of P/N loan, maximum 120 days for each note with interest repayment every month and when the note is due, we will revise loan amount every year
Required Documents
  • Copy of the resolution from the local administration committee or municipal committees approving the projects and allow to loan from the bank
  • Copy of letter of loan, construct or operate of the governor approval according to the policy of the Ministry of Interior
  • Copy of financial statement for the past 3 years and copy of all deposit accounts summary of the local administration
  • Copy of cash flow statement for loaning working capital for the pawn-shops
  • Copy of official command for election results and the candidate elected for the Chief Executive of the PAO or Major
  • Copy of national ID card or government officer ID card and copy of census registration of the authorized signatories and bondsmen
  • In case of constructing on the land which belongs to other persons, a letter of approval from the responsible agencies in such area or the letter of consent from the land owners allowing the construction is required
  • Other useful documents according to the bank policy as necessary
Interest Rate and Fee
Interest rate
  • In case of transferring right of deposit as securities, interest will be collected with the amount of not less than such securities deposit plus 1% per year of margin
  • In case of using other securities/ no securities
    • For term loan, interest will be collected with the amount of 6 month-fixed deposit rate of private sector plus1.75 % per year of margin
    • For O/D loan, interest will be collected with the amount of not less than the rate of MOR-1.5% per year
    • For P/N loan, interest will be collected with the amount of not less than the rate of MOR-1.5% per year
    • In case of default of payment or breach of contract, interest will be collected with the highest rate of such default of payment or breach of contract as stated by the bank
Fee

Fee will be collected based on the bank. Juristic persons or loan committee who have authority for considering loan at each level may have the right to consider reducing or making fees exception.

For more information, please contact