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APB Credit products

Objective:

To support farmer in nationwide to able to access source of fund. APB support and promote agricultural product accordance to Sustainability principle to contribute to the socio-economic development of the Lao PDR.

Target of the credit:

Loan for group is mean a group of farmer who set up a group to produce agricultural product with equally responsibility over the loan on voluntary basis to borrow from APB.

Types of Loans are classified in to 3 categories as follow:

  • 1. Short Term Loans:
    • The objective of this type of loan is to allow the farmer to make a loan for duration of 12 months or one year. Objective of this loan is to contribute to the agricultural production and animal feeding in accordance with season, such as rice farming, all type of vegetable farm, animal feeding and agricultural tools, costs of land preparation, seeds, fertilizers and labor hiring. Maximum credit line for this type of loan is 20,000,000 (twenty million) LAK for group member 1 people per family.
  • 2. Medium Term Loans:
    • Medium term loans are intended for farmer with the term of less than 60 months or 5 years. This type of loan is mainly for investments in agricultural assets that can be used for more long term, for example loans for investment in agricultural like fish pond, fruit farming, big animal farming or livestock, investment in agricultural land reclamation or improvement with maximum credit line of 30,000,000 (thirty million) LAK group member 1 people per family.
  • 3. Long Term Loans:
    • : Long term loans are intended for farmer with the term of more than 60 months or 5 years. This type of loan is intended for long term investments such as Industrial plantation, livestock and etc. with maximum credit line of 30,000,000 (thirty million) LAK group member 1 people per family.

    Loan Security Requirements:

    Farmer clients in the same group obligate themselves in joint liability agreement for theirloan repayments which verification from the head of the village. Should one of the group member cannot repay the loan principal and interest to the Bank, all other member must repay for him.

    Interest and other fees:

    • Interest is based on the official interest chart issued by APB in each period
    • We implement the same fee for both group loan and individual loan.

    Condition of a group loan:

  • Each group will comprise of member from 3-7 people, group member must nominate 2 people to be group head of group and deputy head of group.
  • Nationality must be Lao.
  • Have national ID card and Household Registration Book as required by law.
  • Have a good health.
  • Fully legal responsibility (age more than 18 years and not A mental disorder).
  • Considered as lack of fund.
  • Work in agricultural and handicraft sector or any service related to agricultural.
  • Honest, diligent, patient and live life economically.
  • Not a gambling, alcoholic, drug or in the law enforcement period.
  • Not have an outstanding loan in bank and financial institute orany other informal debt.

    • Loan Documentation:

  • Loan application written by customer.
  • Application to be group member
  • Certification of residence (head of the group and member) with 3x4 photo.
  • A copy of Household Registration Book.

    • Objective:

  • To promote production and small business nationwide to contribute to continuous growth in accordance with socio and economic development as set by the government in each period and to reduce poverty step by step.
  • APB support micro finance to the following target: General People and civil servant who have payroll account with APB to use as working capital for his/her business (not allow for Bank employee).

    • Collateral:

    Bank Saving Account, precious item, payroll, land and building which is under the name of the requester ormarriage property with proper agreement in accordance with the law. In case the collateral is payroll, we will calculated by put salary which will incur in the future with duration of the loan as basis for loan value. In case of use salary as collateral, the related agency must certified to repay the loan for the borrower in case of default with proper signature from related office.

    Interest and other fees:

    • Interest is based on the official interest chart issued by APB in each period
    • We implement the same fee for both group loan and individual loan.

    Loan size, duration and mode of repayment:

  • Maximum 50,000,000 (fifty million) LAK as loan for net working capital and purchase of equipment.
  • Maximum loan duration is 36 months or less than 3 years, based on the actual utilization of the loan.
  • Borrower must open current account with APB to repay loan principal and interest as agreed in the loan agreement such as :
  • o Principal repayment on weekly, monthly or quarterly or every 9 months base on the agreement between APB and borrower to in line with actual income.
  • Interest payment, monthly basis based on actual revenue of the borrower (must be clearly specific in the contract).

    • Condition of loan eligibility:

  • Lao nationality with age more than 18 years old but not more than 65 years old.
  • Have national ID card or Household Registration Book as required by law.
  • Have a good health.
  • Fully legal responsibility (age more than 18 years and not A mental disorder).
  • Considered as lack of fund.
  • Work in agricultural and handicraft sector or any service related to agricultural.
  • Honest, diligent, patient and live life economically.
  • Not a gambling, alcoholic, related to drug or in the law enforcement period.
  • Not have an outstanding loan in bank and financial institute orany other informal debt.
  • For those who have payroll account with APB.

    • Loan Documentation:

    •
  • Form 1: Loan application.
  • Form 2: curriculum vitae.
  • Form 3: Summary of income and expense and business plan.
  • Form 4: Balance sheet.
  • Form 5: power of attorney (for employee).
  • Form 6: Letter of certification (for employee).
  • Form 7: A Power of Attorney Letter (in case collateral is under other person name).
  • Form 8: Asset evaluation of asset which will be used as collateral.
  • Form 9:Feasibily study submit for loan approval.

    • Objective:

    APB support loan in various economic sector such as agriculture and forestry, commercial, service, industrial, manufacturing and other. We also provide funding for individual, entity or company who operate business that have been established and executed under the law of the Lao PDR. Provide this type of source of fund is also contribution to socio-economic development of the country..

    Category and target:

    Personal loan means individual or entity doing business under the enterprise law, the individual or entity who wish to take this loan must have asset as collateral inform of land certificate under the name of borrower or other person, relative, parents with proper A Power of Attorney Letter (original land certificate) with loan value of more than 50,000,000 LAK. The collateral must have value higher than the loan amount in accordance with regulation from APB.

    Collateral:

    All type of loan must have sufficient collateral value such as high liquidate collateral like saving account, precious item with proper certification from reliable shop, land and building with value higher than loan value (original land certificate).

    Interest and other fees:

    • Interest is based on the official interest chart issued by APB in each period
    • We implement the same fee for both group loan and individual loan.

    Loan product of APB:

  • 1 FINANCIAL SUPPORTING
  • 2 BID SECURITY
  • 3 PERFORMANCE BANK GUARANTEE
  • 4 BANK GUARANTEE FOR ADVANCE PAYMENT
  • 5 LETTER OF WARRANTEE GUARANTEE

    • Collateral:

    To support various guarantee is similar to loan process, the best guarantee is cash with proper customer analysis as stated in our process of work.

    Supporting document:

  • Completed application form
  • Business license
  • Business operation license
  • Tax clearance certificate
  • Project document (document related to proposal)
  • Inspection document (for quality guarantee)
    • Currency Buying Selling
    USD 21,700 22,042
    THB 627.20 639.50
    CNY 2,953 3,012
    EUR 22,601 22,822
    VND 0.80 0.84
    Date: 21-11-2024 More detail »

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