GTF 'e-loans' poised to give thrust to exports by SSI units

Mumbai, Oct 4 (UNI) Global Trade Finance Ltd (GTF), the country's leading standalone factoring company, has launched a first of its kind web-based 'e-loans' sanctioning facility for SSI(small scale industry) exporters.

Mrs Shyamala Gopinath, Deputy Governor, Reserve Bank of India (RBI) was at the launch function of the 'e-loans' facility here as Chief Guest last evening and Mr T C Venkat Subramanian, Chairman&Managing Director, Export-Import Bank of India presided over the function, which was attended by a large gathering of exporters, SSI Unit entrepreneurs, bankers, mutual funds and others.

Under the new facility, termed ''SSIs - Sanctions Your Own Loan'', a SSI Unit -- meeting the requisite eligibility criteria -- can get an export factoring unit sanctioned instantaneously by just making an application on the GTF website (www.gtfindia.com), said a GTF press release here.

Furthder, GTF claimed that this is the first time that a financial intermediary is extending export loans on an e-platform in the country. A registered SSI unit having export relationship with an overseas buyer for atleast one year can now seek approval of limits from GTF against its sales to various overseas debtors through GTF's unique web-based package, it added.

Each SSI could be sanctioned a maximum export factoring limit of up to Rs 2.5 crore (dollar equivalent of 500,000) on open account terms under the 'e-loans' facility.

Approval of requested limits is conveyed to exporter instantaneously on submission of basic information pertaining to the SSI unit, details of factorable debtors, key financials, etc. Besides, the application form is user-friendly and at the same time designed to obtain all relevant information on debtors' financials and basic KYC (Know Your Customer) details.

Speaking at the launch event, GTF Chairman S R Rao said, ''The new service aims to harness the vast potential for growth in the SSI sector by alleviating their financing problems through easy, simple and fast availability of finance without compromising on our credit risk evaluation parameters.'' Under the e-loans facility, SSIs can get loans at 9 per cent per annum plus the cost of credit protection provided by Export Credit Guarantee Corporation of India(ECGC) at 0.5 per cent of the value of each invoice.

There are 12 million SSI units in India, accounting for 34 per cent of the country's total exports and they face constraints in terms of insufficient finance on affordable terms, quick turnaround time for their financing and cumbersome documentation. Other constraints being regulatory hassles, inflexible labour markets and poor infrastructure.

UNI SN PM SKB1934