New Delhi, July 27 (KNN) In a bid to expand its local loan book in terms of its lending to the Small and Medium Enterprises (SMEs) in India , the Singapore based DBS announced collaboration with accountancy software firm Tally.

The collaboration is done with an aim to access newer customers. DBS has added over 2000 new SMEs recently, and the bank aims to engage with over 10,000 SMEs by the end of the current financial year.

The Bank is formulating a framework under which it plans to extend 25 lakh rupees as the average loan to the Small and Medium Enterprises.

The collaboration with Tally will help the user transact directly through the banks mobile application. Following which the loans will be extended based on the algorithms obtained by the bank through the transactions, after its done assessing the SME’s repayment capabilities

In a press interview, DBS Banking Head Niraj Mittal informed that the current project is being carried out as a trial in both India and Singapore.

Commenting upon the issue of privacy, Mittal added that the bank will seek the SME’s concern before procuring the transaction data to extend loans. (KNN/ DA)