Orix Starts Eco-Friendly Loan Guarantee Service

Orix Corporation, a Japanese financial services group, announced on November 1, 2006 that it had launched an eco-friendly loan guarantee service, in cooperation with local financial institutions with which it well-established links. The service provides businesses with loan guarantees on unsecured loans at select regional banks. This is the first time for a loan guarantee company in Japan to partner with multiple financial institutions in an effort to raise environmental awareness.

This system incorporates a range of approval ratings in order to reach more customers and to raise their environmental awareness. There are four levels of ratings, from A to D, based on criteria ranging from eco-friendly behavior to official eco-certification. Depending to the client's rating, Orix provides customers with preferential treatment on interest rates from financial institutions, guarantee commissions, and loan guarantee limits.

D-level customers, for example, are those who recognize the necessity of environmentally conscious behavior. Rated by Orix's own checklists, they are eligible to receive an increase of five million yen (about U.S.$42,000) in loan guarantee limits. For A-level customers, who are recognized as taking continuous environmental actions and being officially certified under ISO 14001, and Japan's own EcoAction 21, or other certification programs, the loan guarantee limit is increased by thirty million yen (about U.S.$250,000), and the guarantee commission is reduced by 0.2 percent.

Currently, Orix has partnerships with 94 financial institutions to provide loan guarantees on unsecured business loans. Orix is offering this new service through eight local financial institutions, including Yamagata Bank, Ogaki Kyoritu Bank and Awa Bank, and plans to expand the service to other regional financial institutions throughout Japan in the future.

http://www.orix.co.jp/grp/content/061101_KankyoE.pdf
www.orix.co.jp/index_e.htm

Posted: 2007/02/26 02:05:12 PM
Japanese version