CIMB Niaga channels e-chain loan to Galva

JAKARTA: PT Bank CIMB NIaga Tbk disbursed a US$16 million working capital loan to Galva Group, a company focusing on electronic trading.The facility is short-term loan with one year in maturity and employs e-chain scheme, said CIMB Niaga's Commercial Banking Director, Handoyo Soebali.This e-chain financing is a loan facility given to a company that has particular network with the company which is a main customer of a bank. The main or principal customers shall give the guarantee upon such loan facility.Nevertheless, the tenure of this loan facility is different with the credit maturity. The credit maturity lasts for three to six months, he said today.Such facility also employs commercial interest rate, ranging at 11%-12%. This loan is guaranteed by the assets of principal company, Galva.There are around 75 Galva Groups dealers that are poised to receive this e-chain financing. Also there are 200-300 prospective dealers to receive the credit. The main obstacle in e-chain financing is that not all dealers undertand this product, he said.E-chain credit facility is expected to foster the dealers financing efficiency that in the end shall foster Galvas business activities, said Galva Group President Director Oki Widjaja.The company is targeting IDR1.5 trillion e-chain credit or 50% of the value chain products, which are set at IDR3 trillion. (T02/NOM)