Modern credit products and procedures for SME - ROSBANK example

Date: 2015-10-07; view: 446.

Part 3 SME and banks - Scope for further improvement

ROSBANK exists on the market for about twenty years. During this time, the bank formed and its client base and policy on work with clients. Today it is one of the leaders not only in the credit market as a whole, but particularly in the SME segment. Russian Bank even included ROSBANK in the list of systemically important banks. ROSBANK provides a wide range of services for small and medium-sized businesses and individual entrepreneurs. The bank serves approximately 56 million customers in this segment and is continuously working to expand its customer base as well as on the creation and introduction of new products.

Lending programs for small and medium-sized businesses are as follows: "Professional" and "Professional +", "Universal mortgage loan" Lending to small businesses under the guarantee fund, overdraft and some others.

Loans are given only to organizations of trade, production and services spheres. General loan conditions stipulate the work of the legal entity or entrepreneur for at least one year, the loan amount is in the range of 150 000 - 100 000 000 , the credit period is 3 - 36 months, the interest rate varies from 18.58% to 24.14%. The loan amount for the ordinary borrower can be up to 1500,000. Issuance of the loan in the amount of more than1500.000 with the upper limit of 100 000.000 rubles is possible only if the borrower is considered reliable. This point means that the client had previously taken loans from the bank and had no serious delays of payments. More specific lending conditions are prescribed for each program individually and depend on the timing and amount of the loan. The Bank provides the possibility of early repayment of the loan. One of the positive sides of the credit line of ROSBANK is the lack of various commissions, while the main negative condition for lending in the bank is the life of the organization for at least 12 months. This means that the bank don't give loans to the start up organizations. But in the near future ROSBANK plans to implement such projects as "Successful Start" and "Successful experience", but these programs involve loans for the franchise for example Tea Funny. Thus, ordinary borrowers wishing to start their own business do not have access to get loans in ROSBANK.

Today the most popular programs of bank are "Professional" and "Professional +", since they imply a rapid and simplified lending, lack of collateral and a number of other attractive conditions.

Consider the procedure of credit in ROSBANK by the example of the organization conditionally called LLC "Berry". First of all, it should be noted that ROSBANK uses management reporting of the client instead of official statements to determine the creditworthiness of the borrower. It is usually more reliable than the official statements. The requested data and paper that should be filled in is represented in the Table 7 APPENDIX 3. Specialists of the department also fill in the paper which concerns the calculation of credit. (Table 8 APPENDIX 4) . The paper is fulfilled by specified management reporting data and by the main characteristics of the loan. ROSBANK special ratios to determine the creditworthiness of the borrower. They are as follows:

1) Financial independence=

2) Current liquidity=

3)Net profitability=

4) Coating fee=

All calculations are shown in Tables 5 and 6.