Home> Updates

Bank of Jiaxing offers 1b yuan in loans to local companies

chinadaily.com.cn| Updated : Feb 18, 2020

W020200209497103640183.png.jpg

The Bank of Jiaxing in the city of Jiaxing, East China's Zhejiang province, is offering one billion yuan ($143 million) in loans to help local companies resume operations amid the novel coronavirus pneumonia outbreak. [Photo/cnjxol.com]

The Bank of Jiaxing in the city of Jiaxing, East China's Zhejiang province, offered one billion yuan ($143 million) in loans to help local companies resume operations amid the novel coronavirus pneumonia outbreak, according to local media reports on Feb 16.

The loan is expected to finance at least 10,000 small and medium-sized companies facing financial difficulties due to fewer orders and higher operation costs as a result of the epidemic.

Companies can obtain loans of up to one million yuan without additional guarantees.

"Some of our clients have canceled orders, some receivables are hard to retrieve, and our operations have been suspended for quite a long time. As a result, we are short of working capital," said Mr Shen, head of a company in Nanhu district desperate for more financial support from banks.

According to the Bank of Jiaxing, existing clients may receive an additional loan equal to 10 percent of the original loan and new clients can receive a maximum of one million yuan in loans with an interest rate 20 percent lower than the bank's regular rate.

So far, more than 300 client managers from the bank have been sent to SMEs in Jiaxing to help them apply for loans.

 :