Small financial organizations to be founded for low-income clients

VNGOP – Under Circular 02/2008/TT-NHNN recently issued by the State Bank, small-scale financial organizations will be licensed if meeting nine criteria, the most important of which is that they must present a feasible business plan for first three years.

April 17, 2008 7:21 AM GMT+7

Small credits will help low-income families to improve their livelihood

A small financial organization must have the legal capital of VND 5 billion. They are established as liability-limited companies which can afford debts and other property obligations, with their own legal capital.

Small financial organizations, in the form of single-member liability-limited companies, must be owned by a Vietnamese socio-political organization. Those as companies with two members or more will be founded by two or more capital contributors, or by these contributors and other individuals/organizations at home and abroad. The number of contributors is five in maximum, except other cases stipulated by the State Bank Governor.

For foreign-invested financial organizations, the foreign contributor must be licensed by competent agencies in their country of origin to contribute capital to small financial organizations in Việt Nam.

A loan given by a small financial organization to a client is VND 30 million in maximum.

By Phương Uyên