Public sector lender, Corporation Bank is targeting to offer to Rs 20,000 crore as loans to country’s small and medium enterprises (SMEs) by end of March 2013. The bank has also recently reduced its processing fees by 50 basis points for SME segment durin
Public sector lender, Corporation Bank is targeting to offer to Rs 20,000 crore as loans to country’s small and medium enterprises (SMEs) by end of March 2013. The bank has also recently reduced its processing fees by 50 basis points for SME segment during its loan festival for SMEs that started on October 20th and will run till January 31st next year.
The bank has also launched a credit scheme in which the interest rates would be charged from 11.60 per cent to 12.60 per cent on loans up to Rs 1 crore to the SME sector to encourage lending for SMEs.
B B Tejappa, Mumbai Circle General Manager, Corporation Bank told SMEntrepreneur, “We are offering the 50 per cent concession on the processing charges for SMEs during the festive bonanza. Also, for loans extended to micro and small enterprises up to Rs 1 crore, the rate of interest will be from 11.60 per cent to 12.60 per cent.”
The bank is currently also providing additional concession on interest rate of 25 basis points for women entrepreneurs.
The loan festival has 10 specialised and tailor-made schemes for SMEs including Corp SME Tex Plus Scheme, Corp Term Plus Scheme, Corp SME Auto Plus Scheme, Corp SME Liquid Plus Scheme, Corp SME Gold Card Scheme, Corp SME Receivable Funding, Corp Commercial Vehicle Loan Scheme, Corp Collateral Free Loan Scheme, Corp SME Credit Card Receivable Funding, and Corp Laghu Udhyami Credit Card Scheme.
The bank has launched exclusive SME loan centres in 14 cities across the country. Each SME centre is supported by a team of relationship managers and central credit processing mechanism, said a press release by the bank of its ‘grand festival loan bonanza.’