KATHMANDU, OCTOBER 17
Asian Paints Nepal (APN) and Nepal SBI Bank Ltd (NSBL) have joined hands to support the channel partners of Asian Paints across Nepal to give them the benefit of 'channel financing'.
The memorandum of understanding (MoU) was signed by Gopalakrishnan G, country director of APN, and Dipak Kumar De, MD and CEO of NSBL at an event here.
Channel financing is a programme that offers crucial liquidity support from banks, providing a much-neededboost to businesses that are struggling to manage working capital in these challenging times. Dealers can now access funds at competitive interest rates, empowering them to navigate the economic downturn more effectively. Moreo-ver, this programme allows dealers to avail higher loan limits by providing collateral.
This expansion of lending options provides dealers with the flexibility they need to sustain and grow their businesses, as per a media release.
In addition to the competitive interest rates, this financing offers several other benefits to dealers. One such advantage is the lower loan processing fees compared to standard loan processing costs. This reduction in expenses makes it more feasible for dealers to seek financial assistance and expand their operations.
Moreover, dealers can access ad hoc or temporary limits on top of their availed limit to cover festive and seasonal requirements.
This flexibility enables them to seize opportunities and adapt to market demands more effectively.
Recognising the need to incentivise dealers further, banks have introduced attractive offers to encourage switching. Dealers can now switch banks at a low cost.
This not only enhances the value proposition for dealers but also strengthens their relationship with the banking institution, the release adds.
A version of this article appears in the print on October 18, 2023, of The Himalayan Times
