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SBI to offer loans to dealers at a discount from July 1 |
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Mumbai: State Bank of India (SBI) is going to offer loans to dealers of large corporates at a discount and also waive mortgage charges under a special scheme starting from July 1.
A press release from the bank said that the campaign will run over the next six months. At present, the bank offers loans at 10.5-12 per cent depending on the rating. But under the campaign, the loans will be 0.5 per cent lower, said B.S. Bhasin, Chief General Manager, SME, SBI.
These are dealers who sell products of auto, pharma, electronic goods and steel companies. This is a stable segment which has not been affected much by the economic slowdown, Mr. Bhasin said.
SBI has a market share of 10 per cent in this segment, which it plans to double by 2012, he added. The average ticket size of these loans are around Rs 5 lakh to Rs 1 crore, usually not exceeding Rs 5 crore.
The bank will also ignore the mortgage charges. Normally, a dealer who avails himself of credit facilities offers some collateral security in the form of lending property. When such collateral security is offered as the part of the services, banks charge a fee for creation of such security.
In addition to offering loan facilities, SBI is also offering a wide range of deposit and transaction products to dealers. Dealers can open `Roaming Current Account` with SBI during the period, the release said.
As on March 31, 2009, the bank`s SME portfolio was at Rs 96,000 crore. For this fiscal, it is targeting a growth of 20 per cent, Bhasin said.
(Posted on : 01/07/2009)
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| SBI to offer loans to dealers at a discount from July 1 |
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