SBIs credit schemes for small businesses
By Our Banking Bureau | 19 Jun 2002
Says SBI chief general manager (Kerala circle) C Sundarashyam: "The bank has designed a novel product for providing hassle-free credit facilities to small borrowers with a credit limit up to Rs 5 lakh."
Small-scale industrial units, including tiny units, small retail traders, professional, self-employed and small business units, are eligible for the issue of credit cards under the scheme, he says.
Simplified application
forms and credit-scoring model for small business credit cards
have been designed to enable officials to quickly process
applications. This scheme, to be launched in 10 days, will enable
borrowers to avail of the credit limit with minimum paperwork.
SBI has also launched a new home loan product called tailor-made
home loans, which gives the borrowers the flexibility of
structuring their equated monthly instalments (EMIs). Sundarashyam
says the bank is the first in India to offer tailor-made EMIs,
which will be based on the servicing ability of the borrower.
For instance, he explains, "the EMI could be higher for the initial few years and subsequently come down. The borrower can also resort to balloon repayment during times of high income, like receipt of bonus, insurance maturity amount, etc. To top it all, the scheme will not attract any higher interest rate or fees."
Sundarashyam says his bank, which has 229 branches spread across 14 districts, has plans to open more branches in the Malappuram, Wynad and Kasargod districts, where its presence is minimal. "But this will be done depending upon viability."