This is a long-term finance especially designed for SMEs with a longer tenor and is used to meet long-term funding requirements of the borrowers. This type of finance has fixed number of payments, as in the case of installment based finances. Term Finance for Working Capital is a term finance. Repayments are based on a repayment schedule with equal monthly/quarterly/ or mutually agreed repayment frequency installments in seasonal business.
- 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 to five years
- No grace period for repayment.
- Repayment in equal monthly installments or periodic installments depending upon the nature of business & cashflow trend as deemed appropriate by the approving authority/ committee.
- Mark-up rate: 1 year KIBOR + 5.5 % 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)
- Personal Guarantees of sponsor/partner/directors.Third party Guarantee(optional).
Cash Near Cash Security with 10 to 20% margin..
* Amount benchmarked for SME’s, corporate clients may go beyond the set limit