SMFG India Credit secures $175 million foreign loan

SMFG India Credit has secured a foreign loan of $175 million. The company, a non-bank finance firm, announced this news on Tuesday. The funds will support its regular lending activities. The loan comes through a syndicated borrowing arrangement and is facilitated by Standard Chartered Bank and CTBC Bank. SMFG India Credit, formerly known as Fullerton India Credit, is following a trend among similar firms that have been seeking funds through this method due to challenges in domestic lending. Many companies in the finance sector are turning to external commercial borrowing as local banks face new regulations and sluggish deposit growth. SMFG India Credit has also taken steps to protect itself against risks related to foreign exchange and interest rate changes. According to Chief Financial Officer Pankaj Malik, the funding will help enhance lending capabilities. The goal is to provide better access to credit for both individuals and businesses while maintaining a careful approach to risk management.