Citizens Bank Launches New Strategy to Expand Loans: ‘Easy Business Loan’ at Base Rate
लगानी न्यूज
. KATHMANDU: Citizens Bank Limited has launched ‘Easy Business Loan’ with the aim of expanding small and medium enterprises (SMEs) and increasing investment in productive sectors. On the occasion of its 19th anniversary, the bank has launched two types of loan schemes – Fixed and Floating.
According to Sudhir Regmi, Head of SME Banking, Citizens Bank, the scheme aims to support small and medium enterprises (SMEs) through low interest rates, faster approval process and lower management fees.TAG_OPEN_div_79 Currently, the bank is providing loans at the base rate in floating schemes. Nivesh News talked to Regmi about how customers can avail ‘Easy Business Loan’ and why they should choose this loan scheme over other loan schemes:
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TAG_OPEN_strong_44 What kind of loan is “Easy Business Loan” brought by Citizens Bank?
On the occasion of its 19 TAG_OPEN_div_76 th anniversary, Citizens Bank has launched “Easy Business Loan” scheme targeting the MSME (Micro, Small and Medium Enterprises (MSMEs) businesses. There are two types of loan schemes. In this, ‘Easy Business Loan Fix’ and ‘Easy Business Loan Floating’ loan scheme have been launched. The main objective of this scheme is to provide easy loans to small and medium businesses at the lowest interest rate.
What is the difference between “Easy Business Loan” Fixed and Floating Loan?
‘Easy Business Loan Fix’ The interest rate of the loan is fixed for the first two years. Currently, the scheme is available at an interest rate of 5.99 percent. After two years, the interest rate is determined by adding a premium of 1.50 percent to the bank’s average base rate. Similarly, management fee of 0.50 percent will be charged on the loan. Under this loan, the customer can get a maximum loan of Rs 5 crore. The scheme has been introduced with the objective of facilitating business expansion and operation of new enterprises.
The bank has introduced this loan for business purposes such as capital expenditure financing and permanent working capital term loans.TAG_OPEN_div_71 Similarly, in the ‘Easy Business Loan Floating’ scheme, the interest rate changes according to the bank’s average base rate. This is a scheme specifically introduced for MSME loans up to Rs 25 lakh.
Under this scheme, customers can get loans at the average base rate of the respective month.TAG_OPEN_div_69 The bank has not added any premium to the average base rate of this loan. The management fee on this loan is only 0.50 percent. Both the loan schemes will remain in effect till the end of the current fiscal year.
What kind of discount has been given to the customers in this loan scheme brought by the bank?TAG_OPEN_strong_42
In addition to the interest rate, the bank has also given discount on management fees in this scheme.TAG_OPEN_div_66 Normally, the levy of 0.75 percent has been reduced to 0.50 percent. In addition, the bank has implemented the scheme prioritizing small and medium enterprises for easy loan approval process with minimum documentation.
Which businesses is useful for this scheme?
TAG_OPEN_div_63 I’ve already said a little bit about this project above. The objective of this scheme is to target trading business, small manufacturing industries, service sector, agriculture-related business, retail trade, etc. The MSME sector is considered to be the “backbone” of the Nepali economy. Therefore, the bank has made this scheme public thinking that this scheme would be suitable to increase investment in this sector and to solve the problems seen in the current economy. We have brought this plan to increase the credit investment of the bank in the productive sector.
How will this scheme benefit small businessmen from the scheme brought by the bank?TAG_OPEN_strong_40
One of the biggest expenses for small businesses is paying interest. Now that banks are very competitive and give loans at low interest rates, the financial cost of the businessmen decreases. We expect that small loans up to Rs 50 lakh will be greatly relieved by the low interest rate, faster approval, less documentation, etc.
What are the procedures that a customer has to follow to get a loan?TAG_OPEN_strong_39
It is very easy to get a loan under this scheme.TAG_OPEN_div_57 Customers can apply from any branch of the bank. Similarly, business details have to be submitted and necessary financial documents have to be submitted. The approval process is faster as the process for small loans in floating schemes can be processed on the basis of financial statements and tax documents prepared by the management. Similarly, for fixed-term loan, audit report of the last 3 years, projection of the business, other banking documents required are required.
Many customers complain that “the bank does not lend easily”.TAG_OPEN_strong_38 What is the bank’s view?
For the disbursement of loans, the norms of the Nepal Rastra Bank and the internal policy of the bank should be followed.TAG_OPEN_div_54 Generally, the process is delayed due to some customers not providing the necessary documents on time.
When a customer comes to take a loan, the bank gives the loan after completing the process including business inspection, mortgage valuation and financial analysis.TAG_OPEN_div_52 After completing this process, it does not mean that the customer will not get the loan. However, there may be some problems in the case of the customer who has not completed the documentation.
How competitive is the current interest rate of this scheme of TAG_OPEN_strong_37 the bank?
TAG_OPEN_div_49 The bank has introduced this scheme at a very competitive interest rate targeting the businessmen. This scheme has become attractive and competitive for businessmen, especially as the loan is provided at the average base rate.
What message do you send to the customer at the end?
Citizens Bank has brought this scheme for a limited period. Those who want to expand their business, start a new business or further strengthen their business are requested to visit the nearest branch to get information about this scheme. I request customers to expand their business further by taking advantage of easy process, competitive business and business-friendly service.
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