Unsecured loans to be made more accessible to SMEs

Many SMEs have expressed interest in finding more accessible loans to prepare for opportunities brought about by trade agreements.

Unsecured loans are quite familiar to large corporations, as they have built a good credit history with banks. Small and medium size enterprises (SMEs), however, still struggle in getting unsecured loans despite available sources and a legal framework.

The State bank of Vietnam has recently given more direction to credit institutions and commercial banks to allow SMEs greater access to unsecured loans. Business sectors encouraged to apply for unsecured loans include agricultural manufacturing, industrial manufacturing, trade and commercial services in rural areas, and businesses serving the national agenda in implementing new-style rural areas. 

There are about 500,000 SMEs in the country but only 30% are able to access bank loans. The number of SMEs able to get unsecured loans is even smaller.