Barclays launches ‘Drop Down Feature’ An industry first in Business Instalment Loans (Business Loans)
Barclays Global Retail and Commercial Bank (GRCB) India launched the ‘Drop Down Feature’ for its Business Loans category, a first of its kind in the segment. Through this feature, customers availing of Business Loans, who are regular in their repayment of their EMIs (equated monthly instalments) over a twelve month period will benefit from a lowering of interest rates for the remaining tenor of the loan.
“At Barclays, the customer always comes first. We are proud to launch a product that will not only revolutionise Business Loan offerings in India, but also encourage customers to make payments in a timely fashion by way of the differentiated repayment structure they will enjoy. We are certain that this offering will help Barclays Business Loan customers manage their finances far more efficiently,” said Ram Gopal, Interim Managing Director and COO, Barclays GRCB India.
Currently, across the market, all Business Loan offerings have a fixed rate of interest for the tenor of the loan. Barclays will offer a competitive interest rate for the first twelve months. During the next twelve months, customers who meet their EMI repayment commitments will receive a reduction in the interest rate by a fixed percentage. A further reduction in interest rates will again take place for another 12 months of regular repayments, which will thereafter become the rate of interest for the remaining tenor of the loan.
Speaking on the product feature, Suvrat Saigal, Director – Consumer Banking, Barclays GRCB India said, “Innovation is at the core of any offering from Barclays. We feel that the unique ‘Drop Down Feature’ will encourage customers to avail of the Barclays Business Loans for their business needs. In a market that has been shaken by credit and delinquency issues, products will now have to be innovative to ensure that both the customer and the bank are working closer together. We are confident that this will be a very successful offering”.
Barclays GRCB business has built a strong franchise in India over the past two and a half years with over 900,000 clients and customers. Barclays continues to be committed to India through its six Barclays entities including Global Retail and Commercial Banking, Barclays Capital, Barclays Wealth and specialist technology and BPO centres of excellence. India is one of the leading markets for Barclays Bank Plc.
Business Instalment Loans are an unsecured (collateral free) loan proposition of up to Rs. 35 lacs for longer tenors of 60 months and are available to Self Employed Individuals, Professionals, Sole Proprietors/ Proprietorship Concerns, Partnership Firms and Private Limited Companies. Individuals and organizations involved in the business of trading, manufacturing and services for working capital and business expansion needs and purchase of fixed assets are eligible for these loans.