NEW INDIA & HSBC IN CREDIT INSURANCE DEAL

Global bank HSBC has linked with state-owned general insurer New India Assurance in a credit insurance deal. HSBC will buy credit insurance on behalf of its factoring service clients in the small-to-medium enterprise (SME) sector. Previously the service had only been available to larger corporates. HSBC head of factoring Bhriguraj Singh said that, under the scheme, a profitable SME with a turnover of Rp40m could borrow 85% of its invoice value, which the bank insures with New India. The cost to the borrower, including the credit insurance, comes to about 10.5%. The service launched in Chennai this week, having been launched last month in Mumbai, New Delhi, Kolkata, Pune and Bangalore.