This is a medium-term finance especially designed for SMEs with longer tenor and is used to meet short-term/medium-term funding requirements of the borrowers. This type of finance does not have a fixed number of payments, as in the case of installment finances. Medium Term Running Finance is a revolving finance. Once the finance limit is approved, then the borrower is free to withdraw amounts to the extent of that limit. The borrower can withdraw and repay the amount as many times as he wishes to; but he has to pay mark-up on the amount which he has actually used on monthly basis.
- Available for working capital requirements e.g. purchase of stocks, raw material etc.
- Avail finance facility from Rs.0.5 Million to Rs.100 Million
- Tenor is three years (reviewed annually).
- Principal with multiple withdrawals/deposits to be adjusted on or before expiry. Mark-up to be paid on monthly basis
- Mark-up rate: 1 year KIBOR + 6.5 % p.a (adjusted annually)
- Fast track processing for business existing over two years
- Mortgage of urban residential/commercial/industrial properties acceptable to the bank (Maximum financing will be 70% of Forced Sale Value of the security & collateral).
- Hypothecation of Plant & Machinery/stocks (with 25% margin)
Cash Near Cash Security with 10 to 20% margin..
* Amount benchmarked for SME’s, corporate clients may go beyond the set limit