Commercial Bank of Ceylon (CBC) launched its SME (small and medium enterprise) loan product under the brand name of 'Probriddhi' in the city Tuesday. 'Probriddhi' is a medium term loan, applicable to the SME customers to meet their capital need for starting or expansion of their business, in line with the criteria set for the facility.The loan is offered with many attractive features, with an assurance of fast and easy processing so that the customers can get maximum benefit from the capital provided.
SMEs are at the core of our economic development and many FIs and NBFIs are coming up with SME specific products. BRAC bank is very visible on the SME front, so is Eastern Bank I guess. Now CBC joins the party. However, there is a need to compare and contrast what the banks are offering. We need to know who they are terming as SMEs. Also, we need to be clear about the issue of collaterals. Many SMEs complain that even though there is an array of so called SME products available in the market, but they are too costly, or the legal procedures are too cumbersome and confusing. Do the banks have any answer to address these concerns?
3 comments:
SME Loan is obviously a great thing to implement and we should congratulate the banks for introducing it. However i've heard that the cost of these loans is bit high i.e. bank's are charging 18% to 21% interest which can easily eat the cream of the cake made out of the SME loan.
What is the rate of interest that is been charged for SME loan? i mean the range of amount and the i% against it!@!!!
That is the problem bd.buddy. To know the interest rates and other details, we have to check each bank's websites, brochures etc. There is a need for comparison-based websites where we can compare and choose offers from banks, mobile companies etc. Don't you think?
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