SMFG India Credit Raises $175 Million Via Foreign Loan

Non-bank finance company SMFG India Credit on Tuesday said it has raised $175 million foreign loan.

The funds have been borrowed through a syndicated loan and will be used for regular lending operations, as per an official statement from the company run by Japan's SMFG.

The External Commercial Borrowing facility has been jointly arranged by Standard Chartered Bank and CTBC Bank, the statement from the company formerly known as Fullerton India Credit, said.

It can be noted that a slew of its peers have been accessing funds through the ECB route over the last few months even if they come at a higher cost, as arranging funds from domestic banks become difficult amid regulatory changes and slower deposit growth.

The non-bank finance company said it has fully hedged the facility to mitigate risks associated with foreign exchange and interest rate fluctuations.

"With this funding, we aim to strengthen our lending capabilities, ensuring greater access to credit for individuals and businesses while maintaining a prudent risk management framework," its Chief Financial Officer Pankaj Malik said.