Nippon Shinko Bank, a newly established bank specializing in loans to small and medium-size businesses, has been granted an official license from the Financial Services Agency, the bank announced Tuesday.
The bank will launch operations in Otemachi, Tokyo, on April 21, offering loans to companies in Tokyo and Kanagawa, Saitama and Chiba prefectures. Time deposits will be the bank's main fundraising tool. It will offer unsecured loans of up to 40 million yen with interest rates from 8 percent to 15 percent to companies already in operation.
For new businesses, Nippon Shinko Bank will offer loans of up to 100 million yen with interest rates between 5 percent and 10 percent. Nippon Shinko Bank hopes that lending will total some 37.7 billion yen in its first three years.
"We will mainly target 2,500 to 3,000 companies that have been established within five years and headed by presidents aged under 45," President Yukou Oana said.