The financing facility against Cash and Near Cash securities is designed to meet business needs for those business entities / persons who do not want to liquidate the deposits/bonds/ saving certificates available with them. The financing can be allowed against cash near cash instruments which are even issued/held in the name of person other than the loan applicant.
The financing facility against cash near cash carries additional benefits such as quick processing time, lowest processing fee, less formalities/ documentation, low interest rate etc. The financing facility against cash near cash can be utilized for purchase of stock, fixed assets, and meeting working capital requirements of the business.
- Existing/New business entities having status of (Sole proprietor, or Partnership, Private Limited Company or Corporate entities) are eligible to avail this type of facility.
- Cash near Cash Financing facility will be available either as Fund-Based and Non-Fund Based.
- Avail finance facility up to Rs.200 Million.
Markup Rate for Running Finance
- 2% over deposit rate being paid on deposit maintained with SME Bank Limited. Cash near Cash securities other than SME Bank deposit (1 year KIBOR + 2.5% p.a).
Markup Rate for Term Finance
- 1.5% over deposit rate being paid on deposit maintained with SME Bank Ltd. Cash near Cash securities other than SME Bank deposit (1 year KIBOR + 2% p.a).
- Tenor of facility in case of RFF is one year and for term finance 1-7 years as defined in respective products.
- In case of RFF/TFWC/SBRFF, no grace period; In case of TFFA, grace period up to one year.
- Personal Guarantees of sponsor/partner/directors. Third party Guarantee(optional).
Cash Near Cash Security with 10 to 20% margin..