Features of Lending to Legal Entities in 2021
Not only targeted at personal customers, banks and other financial institutions also offer loans to legal entities. With extra funds from banks, companies will be able to purchase more equipment, boost more potential projects… In this article, let’s figure out some features of lending to legal entities in 2021 with us.
Conditions of loans for legal entities
It is obvious that the company has to meet some requirements to get a loan. Some basic conditions are:
- Good credit history: The bank can not take the risk of issuing a loan to a legal entity who used to delay their payment or has not been repaid any money for previous loans.
- Be able to prove the purpose of borrowing funds
- Be able to provide required documents (business registration certificate, tax code…)
In case your company acquires all these conditions set by the bank, you can apply to the lending process for legal entities.
You might be interested: How to apply for a loan with your ID card only? (vay tiền online không cần cmnd)
Common types of lending for companies in 2021
- Mortgage loans
- Unsecured loans
Interest rate of loans for legal entities
The maximum interest depends on the law for lending in each country. For example, in Vietnam, the maximum interest rate of a personal loan is 20% per year. Loan interest rate can be lowered if:
- The borrower is a regular customer.
- Provision of collateral.
- Long-term business relationship.
Maximum and minimum loan amount
The limit of loan amount varies from banks to banks. The minimum amount of a loan issued is approximately 300,000 USD, and the maximum amount can even be 50 million USD.