FDI businesses will not have to provide their assets as security for the HDBank's loan. — Photo vietstock.vn

HA NOI (Biz Hub) — HCM City Housing Development Bank (HDBank) has given a package of medium loans to businesses with foreign direct investment from June 5 to September 30, 2014.

The businesses will not be required to provide their assets as security for the bank's loan, reports the online Vietnam Business Forum.

The package, worth VND500 billion (US$23.8 million), will help businesses repair and build facilities and buy materials and equipment. The loan will be 70 per cent of total expenditure.

The loan period will not exceed 18 months, with a grace period from three to six months. The loan can be borrowed using Vietnamese dong or US dollar.

In the first six months of the loan period, HDBank will apply an interest rate at 12 per cent per year for Vietnamese dong and 5 per cent for US dollar. The interest rate in the following months will be applied according to the bank's current regulations. — VNS