SME Loan

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

• 1 to 3 years (Revolving loans)
• 1 to 5 years (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

• 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

• 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
• Documents related to the borrower:
  • Copy of identification card or passport of the authorized person
  • Proof of residence
  • Household registration book of the borrower and co-borrower (if applicable)
• Corporate governance documents:
  • Company organizational structure
  • Company internal regulations
  • Copy of shareholder list and minutes of the shareholders’ meeting approving the loan application with the Bank
• Financial documents:
  • Statement of assets
  • Profit and loss statement
  • Bank account transaction history for the past 3 years
• Business related documents:
  • 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)
• Collateral documents:
  • Bank deposit account statement
  • Copy of land title deed
  • Land use transfer certificate (if applicable)
  • Other documents as required by the Bank

• 1% of the total approved loan amount (one-time charge)
• 0.25% collateral appraisal fee