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Wednesday, December 12, 2012

Exim Bank to refinance $500 mn SME loans taken for tech upgrade

Exim Bank today said it would refinance $500 million in loans given by commercial banks for their technology upgrade to boost lending to export-oriented small businesses.

“We have taken an approval to launch the scheme about a month back and will make it operational before the end of the fiscal,” Exim Bank Chairman and Managing Director TCA Ranganathan told reporters here on the sidelines of an SME financing seminar.

He said banks can aggregate their portfolios devoted to technology upgrade by export-oriented SMEs in the manufacturing sector and get it refinanced from the Exim Bank.

The tenor of the loan can be up to seven years, Ranganathan said, adding, this will help banks take care of potential asset liability mismatches.

Exim Bank will raise the resources required to operationalise the refinance facility, and the final rates for banks will be subject to market conditions, he said.

When asked about the benefit to the borrowers and if this would help reduce the interest rates, he said the finer details of the scheme are being worked out.

Apart from this, the bank is also contemplating to launch a similar refinance facility for short-term loans with tenure of up to one year, to meet the working capital requirements of SMEs, Ranganathan said.


Unknown said...

i am want sme loan how can i get it sir plz expain more

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