||Loans & Advances
Fixed Term Loans
1. The term loan normally extends for the acquisition of land, construction and machinery, purchase of vehicles, etc. And also along with working capital financing as compound loans.
2. The term loan is granted to both industrial and non-industrial borrowers, ie for projects / activities related to manufacturing / processing / repair and commercial / commercial activities, etc. The project must establish technical feasibility and economic viability.
3. The term loan extends in different forms, such as loans in rupees, loans in foreign currency and deferred payment guarantees (DPG) / acceptance facilities (other than foreign currency loans obtained from foreign banks or bank branches Indians abroad without the backing of DPGs issued by banks in India).
4. The repayment schedule for term loans would be stipulated based on the debt service coverage ratio, cash generation and repayment capacity. Repayment would be made through periodic payments with appropriate repayment holidays during the execution of the project.
5. The interest rate on term loans depends on various factors such as the nature of the project, how much of the loan, risk rating, repayment period and debt structure.
6. The values for term loans themselves would be according to the general rules of loans of the banks and also depend on the perception of risk of the individual account.
We also offer the following Export Finance facilities to units that undertake or wish to undertake export business.
1. Finance before shipment
to. Packaging Credit (PC)
second. Clean Pack Credit (CPC)
do. Pre-Shipment Credit in Foreign Currency (PCFC)
2. Post Shipping Finances
3. Foreign Bank Guarantee (FBG)
Including the Foreign Currency Deferred Payment Guarantee for the importation of capital goods (subject to the FEMA and RBI guidelines).
4. Foreign Credit Letters (FLC)
For the importation of raw materials, capital goods, etc. (Subject to FEMA and RBI guidelines).
The conditions apply. The information provided above is illustrative only and not exhaustive.
For more details, please contact our nearest branch.
Working Capital Finances
1. Working capital is basically investment in current assets such as raw materials, warehouses, semi-finished products, finished products, miscellaneous debtors, etc.
2. Represents the money required for the purchase / storage of raw materials, payment of wages, salaries, electricity costs, etc., and also to finance the interval between the supply of goods and the receipt of payment thereafter .
3. Working capital financing extends in different forms based on the requirement in the form of Inventory Limits (Preventa), Finance against Accounts Receivable (after-sales), non-funds limits and short-term loan products.
4. The working capital requirements of a unit will be assessed by the adoption of various methods, such as turnover method, maximum permissible bank financing system (MPBF), cash budgeting system and own funds system , Depending on the type of activity.
5. The values for working capital facilities itself would be as per the bank's general rules of lending and also depends on the risk perception of the individual account.
6. The interest rate on working capital financing depends on the loan amount, the nature of the activity, the purpose of the loan, risk rating, financial etc.