GTF, SMERA sign MoU
Leading standalone factoring company Global Trade Finance (GTF) on Tuesday signed a Memorandum of Understanding (MoU) with SME Rating Agency of India (SMERA) to offer rating services to its SME clients.
By PTI |
MUMBAI: Leading standalone factoring company Global Trade Finance (GTF) on Tuesday signed a Memorandum of Understanding (MoU) with SME Rating Agency of India (SMERA) to offer rating services to its SME clients.
National Small Industries Corporation Ltd will offer a 75 per cent subsidy on the rating cost and 20 per cent cost will be borne by GTF, the company's CEO Arvind Sonmale told reporters here.
As of March 2007, GTF had 401 SME clients, which is 62 per cent of its total client base, with a loan outstanding of Rs 772 crore, he said adding, the company expected to grow by 100 per cent on the SME base.
Recently, GTF started an e-loan sanctioning programme for the SSI clients which it intends to extend for medium enterprises shortly. It also plans to open 40 satellite offices this year near industry clusters including in Pune, Jalandhar, Ludhiana and Moradabad among others, Sonmale said.
SMERA CEO Rajesh Dubey said despite being a novel product for SMEs, export factoring has still not been able to achieve the desired scale.
The agency has so far rated 700 SMEs and has tied up 20 banks to provide credit rating and help these enterprises get credit services on better terms.
"We hope to rate about 2,000 SMEs this year," Gupta said.
Sonmale said depending upon the rating, GTF will charge a lower rate of interest on loans to these SMEs.
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