The main solution to improve the quality of short-term loans for small and medium-sized enterprises at Bank for Investment and Development - 7
In this case, the credit is considered approved when the minutes of the meeting of the Credit Council conclude that it is agreed to grant the credit. During the credit approval process if:
– The credit proposal approval opinion of the Deputy Director in charge of customer relations is different from that of the Deputy Director in charge of credit risk. Or:
– The approval opinion of the credit proposal of the Director/Deputy Director of the Corporate Customer Relations Department is different from the approval of the risk of the Director/Deputy Director of the Credit Risk Management Department. Or:
– The opinion of the Deputy General Director in charge of customer relations approving the credit proposal is different from that of the Deputy General Director in charge of risk management.
When this happens, the Risk Approval Authority must conduct direct discussions with the Credit Proposal Approval Authority to come to an agreement. In case of disagreement, the risk-approving authority shall report to the higher-risk-approving authority for consideration and decision.
Step 4: Perform the following procedures for approval:
– Drafting credit granting decision: the decision on credit extension is drafted by the risk management department. The credit granting decision of the competent authority and all credit records are transferred to the customer relations department/branch for the next step.
– Based on the content of credit granting approval by the competent authority, the Customer Relations Department shall negotiate with the customer on the credit conditions approved by the competent authority.
– Drafting contract: Based on the content and credit conditions approved by the competent authority and the Model Contracts, the Customer Relations Department is responsible for drafting the Credit Contract.
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– Contract signing: Contracts must be signed by the authorized representative of BIDV and the customer in accordance with the provisions of law.
– Procedures related to collateral: Customer Relations officers carry out procedures for registration of secured transactions or notarization procedures; Acting as the focal point for delivery and receipt of documents and collateral between BIDV and customers.
Step 5: Disbursement/Issuance of guarantee:
– Receipt and making proposal for disbursement/guarantee issuance The customer’s application for disbursement/guarantee letter issuance includes:
– Disbursement request form made by customer or according to form.
– List of loan withdrawal/specific credit contract. – Other proposals of customers.
– Documents as a basis for simplifying.
Customer Relations Department is responsible for:
– Receive documents, check the purpose and conditions of disbursement/guarantee delivery of customers.
– Prepare disbursement proposal/Issue letter of guarantee.
– Drafting letters of guarantee.
– Transfer all documents to the Credit Administration Department for the next steps.
– Browser for disbursement/guarantee issuance:
Based on the proposal, the Administration Department is responsible for implementing:
– Check the remaining limit, the adequacy and validity of the basis for disbursement/guarantee issuance.
– Check the information recorded in the disbursement documents/guarantee letters from time to time of BIDV.
– Prepare disbursement report/issue of guarantee letter and submit to competent authorities for approval.
– Approval of disbursement/guarantee delivery:
– Based on the disbursement report of the Credit Administration Department and disbursement records.
– Competent authorities consider and decide.
– Approval for disbursement/guarantee issuance.
– Request the Credit Administration Department to complete the disbursement dossier.
– Refuse to disburse and specify the reason for the refusal.
– Enter data into SIBS system and keep records.
– Disbursement accounting.
Credit administration department is responsible for transferring 01 original of loan statement/specific credit contract and all originals of money transfer orders/cash receipt made by customers to Customer Service Department. according to the customer’s instructions.
Disbursement records are rotated and archived according to regulations on archiving accounting documents.
Step 6: Monitor and control:
– Customer Relations Department The customer relations officer is responsible for regularly monitoring loans and assessing customers:
– Perform inspection and review according to the content:
– Purpose of using capital
– Realize collateral in accordance with regulations on collateral transactions in loans of BIDV.
– Annually review and re-evaluate the exploitation efficiency of investment projects:
All inspection, review and assessment of business performance is done through the customer’s credit records, accounting books and documents, field inspection and follow the instructions.
At the end of the inspection, it is necessary to carry out inspection measures, make an inspection report and submit it to the competent authority, the original of the inspection record and the inspection report shall be transferred by the Customer Relations Officer to the credit administration department. to keep records according to regulations.
– Implement debt classification according to BIDV’s regulations – Reassess collateral according to regulations – Regularly monitor and analyze fluctuations in production and business activities, financial situation, assets and assets guarantee products, to promptly detect potential risks.
When detecting signs of risk or the loan turning into bad debt, the Planning Officer must immediately report in writing the signs of risk together with recommendations for prevention to the Leader of the Planning Department/Department for approval and Report to superiors for advice.
– Implement risk prevention measures approved by competent authorities.
– Risk management department:
Responsible for coordinating with the Customer Service Department and Credit Management Department in detecting signs of risk and proposing handling measures when there are abnormal signs.
– Supervision in debt classification and risk provisioning. Summarize the results of debt classification and make provision for risks and send them to the accounting department to prepare the accounting balance according to regulations.
– Supervising the implementation of risk treatment measures approved by competent authorities.
Credit management department:
– Make a notice of the list of due debts and send it to the customer relations department to urge customers to pay the principal and interest on time.
– Responsible for monitoring the situation of loans/guarantees of customers, thereby warning signs of risks of the customer service department.
– Make a notice requesting the customer department to check and review the loan in accordance with regulations. If after 7 days the Planning Department has not yet implemented, the Credit Management Department must report in writing to the superior for advice and guidance on implementation.
– Make reports on provisioning according to the results of debt classification of the Customer Relations Department and regulations of BIDV, and send the results to the Risk Management Department for review.
Step 7: Adjust loans:
– Adjustment basis: customer requests for adjustment.
– Customer Planning Department proposes to adjust loans on the basis of information captured in the process of monitoring, checking, reviewing and evaluating loans/borrowing customers or warning information from the department. QLRR.
Step 8: Collect debt, interest and fees:
Notify and urge customers to pay the principal, interest, fees, etc., to use the capital source for the purpose and effectively of the loan amount, to repay the loan principal and interest on time, and to take appropriate measures if the borrower does not fully and timely fulfill the commitments.
In this case, the customer service planning officer must also collect information from customers, so that when the credit quality is at risk, they must take timely handling measures.
Step 9: Handling and recovering overdue debts:
Customer Service Department notifies customers when overdue debts arise, examines the causes of overdue debts, and urges customers to pay overdue debts.
Proposing to competent authorities for approval:
– Changing policies that customers are applying such as: cutting incentives, stopping new loans, adding collateral… – Coordinate with Customer Service Department to take measures to deduct customers’ deposit accounts debt collection when there is a balance.
– Set up collection authorization through credit institutions where customers open accounts.
– Ask the guarantor to pay instead.
– Apply the form of sale of collateral to recover debts (according to the instructions in the Regulations on secured transactions in loans).
– Using the risk reserve fund to build overdue debts to turn into bad debts that are no longer recoverable (according to regulations on setting up and using risk provisions in credit activities) – Methods of handling other such as: Debt sale, securitization… Step 10: Liquidation of credit contract:
– All attempts loans.
– Clearing mortgage and pledge contracts.
Liquidation of credit contracts.
APPENDIX 4: SHORT-TERM LOANS FOR SMEs AT BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM – QUANG TRI BRANCH
– Ordinary short-term loans
Loan object: expenses related to production and business activities such as costs of purchasing raw materials, goods, services, salaries, electricity/water bills, etc.
– Loan method: by item, limit.
– Loan currency: VND, USD, other foreign currencies.
Loan amount: according to agreement, in accordance with customer needs.
Loan term: up to 12 months.
– Collateral: with/without collateral or third-party guarantee.
– Competitive, reasonable, fixed or floating lending interest rates for the loan term, suitable to the needs of customers.
– There are many forms of loans suitable to the type of business of the Enterprise
– Can borrow in many different currencies.
Have enough loan terms from 1 to 12 months.
– Business overdraft
Loan object: working capital expenses for production and business.
– Conditions: customers have VND current account at BIDV, meeting the criteria of financial situation and payment reputation.
Overdraft currency: VND.
– Overdraft limit (HMTC): up to 5 billion VND. In case the need for overdraft is over VND 5 billion, BIDV will consider it if it meets some other additional conditions.
– Time limit for granting HMTC: up to 12 months and is considered for re-issuance annually.
– Collateral: no special assets if it meets BIDV’s criteria.
– Simple disbursement and debt collection procedures; flexible implementation at the enterprise’s headquarters or BIDV’s transaction points. – Maximum savings on loan costs due to automatic debt collection as soon as the account has money. – Increase the efficiency of capital management between the Parent Company and its member companies when used in combination with centralized collection and capital management services.
– Loans for construction and installation
Loan object: Expenses for execution of construction and installation contracts (except for depreciation expenses of fixed assets).
– Loan method: by item, limit.
Loan currency: VND, foreign currency. Loan amount: up to 80% (according to loan turnover) of the contract value.
Loan term: up to 12 months.
– Collateral: real estate, machinery, equipment, means of transport, debt collection rights for construction and installation volumes formed in the future…
– The loan term is suitable to the actual construction and contract performance.
To be provided with products and support services throughout the construction process from bidding, execution of construction contracts, to payment, to ensure the quality of the work.
– Flexible collateral, can mortgage the construction contract itself.
– Shipbuilding loan
Loan object: reasonable expenses related to the construction of the ship (except for depreciation of fixed assets).
Loan currency: VND, foreign currency. Loan amount: up to 75% of total investment.
Loan term: up to 24 months.
– Lending comdition:
Own capital contributes at least 25% of the total investment.
Buy insurance during the construction of the ship.
– Collateral: assets formed from loans and other assets according to BIDV’s regulations.
– The level of funding and loan period are suitable to the characteristics of the industry. Hue University of Economics – Flexible collateral that can be mortgaged by the loan ship itself.
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