Term Finance for Working Capital

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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.

Product Features

  • 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 + 7.5% 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

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