For whom are the Trade and Working Capital products useful?
The target segment includes manufacturers, retail/wholesale traders, importers/exporters and service providers. SMEs including Traders, Manufacturers , Service Enterprises, Retailers, Stockist, Distributors, Merchant Establishments, Departmental Stores, Supermarkets, Restaurants, Multi Brand Outlets etc.
Which entities are eligible for loans under Trade and Working Capital?
What are the types of facilities offered under Trade and Working Capital?
Depending on the needs of the customers, facilities range from:
What do I need to give as security?
Security in any of the following forms is acceptable:
What are the minimum documents I need to submit for sanction?
What is the rate of interest that would be charged on overdraft?
The rate of interest charged would vary from case to case based on the strength of financials, facilities offered, tenor etc. Specific details would be provided by the sales officers.
Specific details would be provided by the sales officers.
What is the maximum loan amount offered?
The maximum loan amount can be extended up to Rs. 75 crores
Products under SME Loan
1. SME Term Loan – Short term and Long Term
2. Cash Credit and Working Capital Demand Loan Facility - Bank offers Cash Credit facilities to various segments of customers for their working capital requirements. This is a fund based facility to help fund business inventory (raw materials and finished goods) and receivables (debtors).
3. Overdraft - Bank offers Overdraft facilities to various segments of customers for their working capital requirements. This is a fund based facility to help fund business inventory (raw materials and finished goods) and receivables (debtors).
4. Letter of Credit or SBLC - In a business cycle, as a buyer you need to pay for your purchases in international and domestic markets. Our letter of credit helps you to facilitate purchase of goods in international and domestic trading operations. Letter of credit is an undertaking by a bank (opening / issuing bank) made to the seller (beneficiary) on behalf of the buyer (applicant) to pay a certain amount if documents are presented conforming to terms of the letter of credit within a stipulated time period
5. Bank Guarantee – For your various business obligations, we stand by you as Surety and offer Guarantees on your behalf in local and foreign currency for approved purposes, within regulations and thus help fulfil your business requirement. We offer various types of guarantees viz. financial, performance, etc. that are required at various stages of your contract.
6. Buyers Credit - Buyer's Credit service is specially designed to help you with your import business. It is an arrangement done by importer’s bank through their foreign branch or through their correspondent banks for making the payment of importer’s existing import bill to the supplier. The importer will pay to such financing bank after a certain credit period. We undertake to arrange such financing (Buyer’s credit) as per your operating cycle for your import bills through our overseas branch / correspondents at a very competitive rates and thereby providing advantage of interest rate arbitrage opportunities of lower interest rates in overseas markets.
7. Export Credit - In today’s highly competitive international trade, to be successful, the exporter has to propose good offerings at competitive rates and also provide longer and liberal terms of credit to importers. Keeping this in mind, we offer a wide range of export services designed to make your export to make your export business hassle- free You might require your overseas importer to make advance payments for goods they are importing. We have a specific product designed for you called Export Advances.
8. Bill discounting - While discounting a bill, the Bank buys the bill (i.e. Bill of Exchange or Promissory Note) before it is due and credits the value of the bill after a discount charge to the customer's account. The transaction is practically an advance against the security of the bill and the discount represents the interest on the advance from the date of purchase of the bill until it is due for payment. Under certain circumstances, the Bank may discount a bill of exchange instead of negotiating them. The amount the Bank advances to you also depends on your past record and reputation of the drawee.
Usually, the Bank may want some conditions to be fulfilled to be able to discount a bill - A bill must be a usance bill , It must have been accepted and bear at least two good signatures (e.g. of reputable individuals, companies or banks etc.), The Bank will normally only discount trade bills - Where a usance bill is drawn at a fixed period after sight, the bill must be accepted to establish the maturity, The advising or confirming bank will hide the reimbursement instruction from the beneficiary so that his bank must present the documents to the nominated bank for negotiation in order to obtain payment under the DC terms. Bills which are financed by the receiving branch, whether drawn under a DC or not, are treated as Bills Receivable by both the remitting branch and the receiving branches.
9. Foreign Currency Loan - Corporates can avail loans from Banks where FCNR deposits are available. The Indian corporates/ firms are allowed to raise the funds through foreign currency loans at select Indian brancheswithin the prevailing policy guidelines of the Bank/ RBI.
RATE OF INTEREST
Bullet payment (one lump sum) by:
Tendering export documents
Proceeds of export collection bills
Debit to EEFC accounts
Purchase of foreign currency from the bank at contracted/ready rate if forward booking is waived.
All Documents should be self attested by Applicant / borrower