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SBI cuts interest rates for SME customers
After cutting deposit rates last week, public sector bank State Bank of India has now slashed its lending rates for small and medium enterprise (SME) customers.
After cutting deposit rates last week, public sector bank State Bank of India has now slashed its lending rates for small and medium enterprise (SME) customers.
The bank, which had introduced soft loans to its existing customers through products such as ‘SME Care’ and ‘SME Help’, has extended these schemes up to September 30.
“SME Care and SME Help have been launched to help SMEs tide over the current constraints faced by them due to the slowdown,” said BS Bhasin, chief general manager (Banking operations) SBI.
The public sector bank has extended the availability of term loans under the SME Help scheme for two years at 8 per cent. The bank had earlier extended the scheme at this rate for one year.
The bank has also slashed the interest rate to 8 per cent for all new SME customers with loan requirements up to Rs 5 lakh.
For new SMEs with fund-based loan requirements of Rs 5-25 lakh, the Bank is offering fixed rate of interest of 10 per cent. Both these concessions will be available for the next two years to those who obtain credit guarantee fund trust for micro and small enterprises (CGTMSE) covers.
SBI, which has a base of over 12 lakh SME customers, has an SME loan portfolio that constitutes approximately 23 per cent of its total loan portfolio.
