AIB launches simplified loan scheme for SMEs
AIB will announce today that it is launching a new simplified loan-application procedure for small and medium-sized businesses to boost access to credit for the sector.
Under the new arrangements, viable business borrowers will be able to secure a decision on loan applications for up to €25,000 on the following business day.
Local bank branches will make the actual decision on whether or not to give loans to individual small and medium-sized enterprises (SMEs).
The loans will be available for working capital, investment and expansion activities and will be available to customers who have banked with AIB for the past 12 months, the bank’s statement says.
According to its chief executive, David Duffy, branch staff at will be “mobilised” to begin processing business credit applications under the new system from tomorrow.
“This initiative is a key step to improving credit flow and boosting economic activity whilst still maintaining prudent credit standards,” Mr Duffy said.
“There is a perception at large that banks are not lending, which in itself discourages SME customers from approaching the bank for credit. AIB is determined to change that perception,” he said.
Banks are under fire for not providing credit to viable businesses, and particularly SMEs.
Addressing the latest Irish Times Innovation Roadshow, economist Dr Stephen Kinsella warned that the sector was being starved of credit.