Various banks offer working capital finance to meet the entire range of short-term fund requirements that arise within a corporate’s day-to-day operational cycle.

The  working capital loans can help your company in financing inventories, managing internal cash flows, supporting supply chains, funding production and marketing operations, providing cash support to business expansion and carrying current assets

The, working capital loans are tailored to suit the precise requirements of the client, in any of the various instruments available or structured as a combination of cash credit, demand loan, bill financing and non-funded facilities.

The bank’s accomplished credit crew can gauge the credit needs of each client and frame the exact solutions.

A dedicated credit team has a deep understanding of the intricacies of various industries and is richly experienced in reckoning the business potential of companies.

These informed professionals can assess your specific credit requirements and tailor customized financial solutions to suit your risk profile and the working capital cycle of your company.

Normally working capital finance is extended as a ‘limit’ for various facilities for tenors up to one year. ‘Ad hoc’ requirements are also considered.

The loans normally carry on a floating interest rate.

Working capital finance limits are normally valid for one year and repayable on demand. Specific, self-liquidating loans are linked to the natural tenor of the transaction (bill finance, export credit etc.).

Various banks extend  financial support to the corporate distribution networks, by providing both working capital finance and term loans to select dealers of identified companies. This gives dealers to leverage their business relationship with major corporates to avail low cost credit. Also, this type of financial solutions allows the corporate negotiate a better price with dealers. Dealer financing may be extended in the bill discounting form or simply as cash credit.

Easy to access and flexible to provide you with the cash you need day to day.

Long-term financing solutions are designed to match your company's needs, with flexible repayment plans tied to your profits and cash flow.

When purchasing new equipment or upgrading facilities, we work to understand your business to prepare straightforward and cost-effective equipment financing packages.

If your company operates a fleet of vehicles, you can connect with a vehicle leasing and management provider for competitive products and services.

The flexible Floorplan Financing program lets you maintain suitable inventory at competitive interest rates.

Finance your lease fleet with a great program that offers fixed, floating, or floating-to-fixed rate options.

Dealer Value Lease Plan gives you the benefits of leasing while relieving you of credit, collection, and vehicle disposition problems.

It's retail financing focused on a dealership's needs; providing specialized financing options through our industry-focused retail financing experts.

Through asset-based financing solutions, you can take advantage of secured revolving lines of credit and associated term loans based on the current value of your accounts receivable, inventory, equipment and real estate.

Mortgage Loans can be availed by professionally qualified individuals who are salaried or self employed, against the mortgage of their residential property.

The loan seeker can avail these loans ranging from from Rs. 1,00,000/- to Rs. 100,00,000/-. The actual loan amount is determined after taking into account factors like repayment capacity, age, educational qualifications, stability and continuity of income, number of dependents, co-applicant's income, assets, liabilities, saving habits etc. The tenure of the loan ranges from 1 to 7 years. This term however does not extend beyond the retirement age or 60 years whichever is earlier. (65 years for self employed individuals).

The banks have  a dedicated Project Finance Strategic Business Unit to assess credit proposals from and extend term loans for large industrial and infrastructure projects. Apart from this, project term loans for medium sized projects and smaller clients are delivered through the CAG and the NBG.

In general, project finance covers greenfield industrial projects, capacity expansion at existing manufacturing units, construction ventures or other infrastructure projects. Capital intensive business expansion and diversification as well as replacement of equipment may be financed through the project term loans.

Project finance is quite often channeled through special purpose vehicles and arranged against the future cash streams to emerge from the project.

The loans are approved on the basis of strong in-house appraisal of the cost and viability of the ventures as well as the credit standing of promoters.

  FAQs

The bank offers term loans with both fixed and floating rate options, customized to the risk merits of the project as well as the promoter.

The project finance can be structured as either foreign currency or rupee loans with option of conversion from one type to the other at the end of interest periods. This will help you take advantage of forex fluctuations and global interest rate trends vis-à-vis domestic rates to minimize your debt cost.

Project finance is typically structured as long term loans, with tenors generally from 5 to 10 years. Maturity periods and repayment modes are structured in line with the specific aspects of each project and industry, factoring in a timeframe for the venture to generate a stable revenue stream

Repayment options are again structured in tune with the specific requirements of each project and its promoter. Repayments can be periodic or bullet, or may come with an initial moratorium during part of the project gestation period. For example, a seven-year loan may have a moratorium on repayments during the first two years and the payment installments may be spaced out during the remaining five years.

Banks can extend deferred payment guarantees to industrial projects for obtaining imported equipment. The DPG is a standby credit guaranteeing deferred payments, usually for payments for capital goods, turnkey contracts etc.

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Channel financing is an innovative finance mechanism by which the bank meets the various fund necessities along your supply chain at the supplier’s end itself, thus helping you sustain a seamless business flow along the arteries of the enterprise.

Channel finance ensures the immediate realization of sales proceeds for the  client’s supplier, making it practically a cash sale. On the other hand, the corporate gets credit for a duration equaling the tenor of the loan, enabling smoother liquidity management.

Channel Financing is an innovative product to extend working capital finance to dealers having business relationships with large companies in India. This may be in the form of either cash credit facilities or as a bill discounting line of credit.

Under this banks can extend:

Discounting of trade bills drawn by you and accepted by the dealer/distributor

Limited overdraft facility to the dealer/distributor for his business dealing with large corporates

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The banks structured finance scheme involves assembling unique credit configurations to meet the complex fund requirements of large industrial and infrastructure projects. Structured finance can be a combination of funded and non-funded facilities as well as other credit enhancement tools, lease contracts for instance, to fit the multi-layer financial requirements of large and long-gestation projects.

Further, the various banks have firm relationships across the financial map of the world, which can be leveraged to structure solutions that may necessitate the participation of several credit agencies.

Mezzanine finance, or participatory lending, are funding schemes whereby a lender will lend more than its normal policy allows in exchange for a share of the anticipated profits or a higher fee. It can apply equally to investment and development proposals. Mezzanine deals tend to work best where there are reasons to expect the value of a property to increase significantly over the medium term (say 3-5 years).

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The banks have  a dedicated Strategic Business Unit for lease financing that is richly experienced in arranging lease contracts for procuring expensive equipment for your project or plant. 

The banks typically undertakes leasing contracts worth a minimum of Rs 5 crore. However, it is generally restricted to 50 per cent of the total net worth of the lessee. Usually, lease assistance is considered for Greenfield projects promoted by reputed industrial groups.

Lease contracts are usually structured for a tenor of 5 to 7 years. However, longer periods are considered in select cases.

The lease finance charge is usually a variable rate linked to the bank’s medium term lending rate, and is charged on the funds disbursed before the delivery of the asset to the lessee.

The lease management fee is normally one per cent of the lease amount sanctioned and is payable at the time of execution of documents.

Lease rentals are payable after the delivery of the asset for the lease period.

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The  corporate term loans can support your company in funding ongoing business expansion, repaying high cost debt, technology up gradation, R&D expenditure, leveraging specific cash streams that accrue into your company, implementing early retirement schemes and supplementing working capital.

The bank’s corporate term loans are generally available for tenors from three to five years, synchronized with your specific needs.

The corporate term loans may carry fixed or floating rates, as befits the exact requirement of the client and the risk context. Again, these rates will be linked to the bank’s prime lending rate.

Corporate term loans can have a bullet or periodic repayment schedule, as required by the client. The repayment mode may be linked to the cash accruals of the company.

The Bank’s expert credit crew gauges the applicant’s particular fund requirements and evaluates the company’s credit worthiness, factoring in the cash flows generated by it.

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Banks offer working capital finance to meet the entire range of short-term fund requirements that arise within a corporate’s day-to-day operational cycle.

The  working capital loans can help your company in financing inventories, managing internal cash flows, supporting supply chains, funding production and marketing operations, providing cash support to business expansion and carrying current assets.

The, working capital loans are tailored to suit the precise requirements of the client, in any of the various instruments available or structured as a combination of cash credit, demand loan, bill financing and non-funded facilities.

The bank’s accomplished credit crew can gauge the credit needs of each client and frame the exact solutions.

A dedicated credit team has a deep understanding of the intricacies of various industries and is richly experienced in reckoning the business potential of companies.

These informed professionals can assess your specific credit requirements and tailor customized financial solutions to suit your risk profile and the working capital cycle of your company.

Normally working capital finance is extended as a ‘limit’ for various facilities for tenors up to one year. ‘Ad hoc’ requirements are also considered.

The loans normally carry on a floating interest rate.

Working capital finance limits are normally valid for one year and repayable on demand. Specific, self-liquidating loans are linked to the natural tenor of the transaction (bill finance, export credit etc.).