Global Trade targets SMEs with online loan access
Global Trade Finance - the NBFC promoted by Export-Import (Exim) Bank of India - has tied up with the Export Credit Guarantee Corporation (ECGC) to provide online loans up to Rs 2.5 crore to units in the SSI sector at an interest rate of 9% per an...
By Preeti R Iyer, TNN |
MUMBAI: Small and medium enterprises (SMEs) engaged in international trade will now find it easier to procure loans. Global Trade Finance — the NBFC promoted by Export-Import (Exim) Bank of India — has tied up with the Export Credit Guarantee Corporation (ECGC) to provide online loans up to Rs 2.5 crore to units in the SSI sector at an interest rate of 9% per annum, along with a premium of 50 basis points per invoice.
Global Trade Finance will be launching a web-based programme to target units in the SSI segment. Speaking to ET, Arvind Sonmale, MD and CEO, Global Trade Finance, said, “About 70% of the total loans granted, so far, are to SMEs, and SSIs only account for approximately 7%.
The issues plaguing the SSI sector currently are lack of both accessibility and awareness.” A web-based platform was the best way for the company to reach out to a vast geography, considering its limited branch exposure, said Mr Sonmale.
Through this product, domestic SSI units will be able to access the programme over the internet and submit an online application, with basic details about companies and buyers, key financials, et al. The information disclosed will be linked to a back-end processor, to evaluate information instantly and convey to the applicant within a minute’s time on whether he can avail of the loan.
Once the loan is sanctioned, the exporter would have to approach the nearest branch of Global Trade Finance with required documents and after a visit to the borrower’s factory premises, the loan will be disbursed.
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