NAB (ASX:NAB) offers $250,000 loans in 20 minutes in latest competitive push

Young woman sitting on nice furniture is pleasantly surprised at what she's seeing on her laptop screen.

The National Australia Bank Ltd. (ASX: NAB) share price could receive a boost following the company’s strategic offering.

At Thursday’s closing bell, NAB shares finished the day 1.63% lower to $29.66 apiece. Despite falling wayside as a result of the broader S&P/ASX 200 Index (ASX: XJO) selloff, NAB shares have gained almost 4% in a week.

Let’s take a look at what the major bank has planned.

NAB brings further support to SMEs

Investors will be closely watching this space as the company introduces new low-rate loans to small business enterprises (SME).

NAB will be supporting businesses in need of a quick cash flow injection to stay open and keep workers employed.

SMEs can apply for a loan of up to $250,000 within 20 minutes from NAB’s platform. The rate has been reduced to 4.5% per annum. Furthermore, no repayments are required in the first six months of the principal and interest loan.

This is only eligible for businesses that have an annual turnover of $50 million or less. The term of the loan is valid for three years.

NAB’s latest offering is a direct response to businesses that have been severely impacted by COVID-19. Thousands of personal and business customers that have sought deferrals on their loans have been supported by the bank.

NAB chief customer experience officer, Rachel Slade commented:

We are proud to partner with the Government to bring vital relief to businesses so they can stay open, and keep Australians in jobs.

This pandemic has hit at the heart of Australian business – great businesses right across this country are overnight finding themselves with zero cashflow.  With the Government’s Coronavirus SME Guarantee Scheme, NAB is able to support even more businesses and ensure they are set for recovery when we get through this.

NAB share price review

In 2021, the NAB share price has continued to rise in value, gaining more than 30% for investors. However, when looking at this time last year, the company’s shares are hovering above 35%.

NAB commands a market capitalisation of approximately $97.34 billion, with about 3.28 billion shares on its books.

The post NAB (ASX:NAB) offers $250,000 loans in 20 minutes in latest competitive push appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia

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