State-run Banks Offer Favorable Biz Loans in Line with Policy

Taipei, Dec. 1, 2010 CENS --To comply with the government`s policy to promote six emerging industries including biotech, healthcare, green energy, tourism, boutique agriculture, and innovative culture, Taiwan`s state-run banks are offering favorable loans to such enterprises.

The First Commercial Bank plans to offer about NT$20 billion US$625 million in loans at 1.8%-2% per annum to small- and medium-sized enterprises that need operating capital in biotech, new energy and LED.

A senior First Commercial manager indicated that each SME loan generally totals NT$60-200 million US$1.88-6.25 million with lending rates contingent on collateral or operating performance of the enterprise; however the favorable loans come with lower rates to encourage SMEs to engage in the said six industries.

The Taiwan Business Bank is also offering favorable loans with various terms to meet different needs of enterprises; for instance, the amortization of short-term capital expenditure loan is usually one year, that of capital equipment loans at about five years, and that of loans collateralized with property may be over 15 years.