No. Features Description
1.0 Scheme Name Financial Guarantee Scheme for Micro, Small, and Medium Enterprises (MSMEs).
2.0 Size (Total Loan Amount)
  • 500 Billion LAK (1st Tranche).
  • 10% of the loan size (50 Billion LAK) is allocated for foreign currency credit to pay overseas suppliers in THB, USD, and CNY.
3.0 Types of Guaranteed Credit
  1. Term Loans.
  2. Overdrafts (OD).
  3. Revolving Credit (e.g., trade finance, invoice financing, account receivable financing, etc.).
4.0 Guarantee Coverage Rate
  • 80% of the loan amount (Secured guarantee).
  • 70% of the loan amount (Unsecured guarantee).
Note: The guarantee covers only the principal of the loan, excluding interest and other fees.
5.0 Guarantee Utilization Fee
  • 1.0% per annum (Secured).
  • 1.5% per annum (Unsecured).
6.0 Loan Amount Limit
  • Minimum: 100 Million LAK
  • Maximum: 4 Billion LAK
7.0 Purpose of Loan
  1. Working Capital
  2. Capital Expenditure
8.0 Tenure 1 Year to 7 Years
9.0 Sectors Agriculture, Commerce, Services, Handicrafts, Industry, and Priority Sectors.
Priority Sectors include:
  • Processing industry (agriculture, handicrafts, crops, and livestock)
  • Wholesale of agricultural products (for factories and export)
  • Tourism services

*For priority sectors: Guarantee coverage is 80% and the fee is 1% per annum (for both secured and unsecured).
10.0 Eligible Borrowers
  1. Classified as SME according to Decree 04/GOL
  2. Registered enterprise and operating legally in Lao PDR
  3. Majority Lao-owned
  4. Operating a business in Lao PDR
  5. In operation for at least 2 years
  6. Good loan repayment history in the past 1 year (NPL must be resolved for 1 year)
  7. Ability to repay the loan
  8. Not blacklisted or sanctioned
  9. Business activities not on the exclusion list