HSBC proposes to launch unsecured lending to small- and medium-sized enterprises (SMEs) by July this year.
The foreign bank, which has just started to crawl into the SME lending space, will introduce a unique product for SMEs. “We are going to lend to SMEs on the back of a score card, just as in the case of retail lending when we offer personal loans and credit cards,” said Subir Mehra, head, commercial banking, HSBC.
Scoring off the strengths and weaknesses of SMEs would be the decisive factors in whether an individual or small proprietary organisation can avail of a loan and if so, at what rate of interest. HSBC’s venture into unsecured lending will start with small amounts.
“Currently we lend up to Rs 1 crore against property, but in the case of unsecured lending, we will not commit such large amounts,” said Mehra.
