SME Loan – Loan to Promote Small and Medium Enterprises (SMEs)
To support and promote sustainable growth for SMEs across key sectors, with a special focus on the following 9 business categories:
- Agriculture Sector: such as promoting the cultivation of vegetables, mushrooms, pesticide-free or organic farming.
- Food Processing Business: including food preparation and related processing activities.
- Construction Business: support for enterprises engaged in construction-related services.
- Wholesale and Retail Trade: including flower shops, large vehicle and motorcycle repair shops.
- Hospitality and Service Industry: such as hotels, guesthouses, restaurants, and laundry services.
- Transportation Sector: including air, land, and waterway transportation businesses.
- Education and Healthcare Services: such as schools, clinics, factories, and various types of production plants.
- Handicrafts and Traditional Industries: such as weaving, silk production, embroidery, wood carving, and pottery.
- Environmental Conservation and Recycling Businesses: including enterprises focused on environmental protection, circular use of leftover materials, or recycling initiative.
- Individuals or legal entities operating a business in full compliance with Lao PDR laws
- Must have permanent residence in the Lao PDR
- Must not have outstanding non-performing debts, either within and outside the financial system
- Must not be declared bankrupt or involved in ongoing legal proceedings
- Must be trustworthy and possess the capability to manage the business effectively
- Term Loan
- Revolving Loan
From LAK 100 million to LAK 4 billion, or the equivalent in other currencies..
Available in LAK, THB, and USD.
- LAK: Starting from 12.00% per annum
- USD: Starting from 10.50% per annum
- THB: Starting from 9.75% per annum
Interest rates are subject to periodic changes in accordance with the Bank’s official notifications.
1 to 3 years (Revolving loans)
1 to 5 years (Term loans)
For Term Loans:
- Interest is payable monthly
- Principal is payable monthly or in installments according to the agreed terms and the borrower’s actual repayment capacity
For Revolving Loans:
- Interest is payable monthly
- Principal is payable in full at the end of the loan term, or as agreed upon by the borrower or as demanded by the Bank
- Phongsavanh Bank deposit accounts or deposits
- Land title deeds issued by the relevant authorities
- Loan collateral agreements issued by the Bank
(1) For Individual Applicants:
- Completed loan application form (as provided by the Bank)
- Copy of identification card
- Proof of residence
- Household registration book of the borrower and co-borrower (if any)
- Proof of income and repayment capacity
- Copy of land title deed (if used as collateral)
- Any other documents as required by the Bank
- Copy of business operation license
- Copy of enterprise registration certificate
- Copy of tax registration certificate
- Copy of identification card or passport of the authorized person
- Proof of residence
- Household registration book of the borrower and co-borrower (if applicable)
- Company organizational structure
- Company internal regulations
- Copy of shareholder list and minutes of the shareholders’ meeting approving the loan application with the Bank
- Statement of assets
- Profit and loss statement
- Bank account transaction history for the past 3 years
- Copies of contracts and agreements (e.g., sales contracts, construction agreements, and others)
- Copies of supporting business documents (e.g., invoices, purchase orders, payment vouchers, and others)
- Bank deposit account statement
- Copy of land title deed
- Land use transfer certificate (if applicable)
- Other documents as required by the Bank
You will receive a response within 3 business days after submitting all required information and complete documentation to the Bank.
1% of the total approved loan amount (one-time charge)
0.25% collateral appraisal fee