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SME SECTOR

Loan Against Property helps to realise the true value of the property to meet the business and personal needs. You can mortgage your residential or commercial property to get a loan & meet all your financial requirements. The Loan purpose may include Business Expansion, Education/Marriage expenses, Purchase of house, Improvement/Extension of existing Property, Medical Treatment and any other personal Need.

Lease Rentals Discounting (LRD) has been developed considering the growth potential in the real estate in various metros and urban centers, where many commercial properties/shopping malls are being developed and the owners approach banks for loans against securitisation of future rent receivables from such properties. Loan against Rent Receivables fulfills the financial requirement of applicants having self owned property given on rent & enable them to get the liquidity against the expected future rentals of the property. The facility requires entering into Tripartite Agreement among the Bank, Borrower and the Tenant. There also exists an alternative of obtaining a suitable letter of authority and commitment to pay rent directly to the Bank from the owner of the property and the tenant respectively, at the discretion of the Sanctioning Authority. The purpose of the loan may include Taking up new projects , Business, trade/commercial activity, education/Marriage Expenses, Repair/Renovation/Construction of building/residences/Commercial shops, • Repayment of Existing Loans, Purchase of House, etc

Loan is structured evaluating various criteria like lease tenor, tenant rating and property valuation. Loan quantum is derived primarily by discounting of future rental cash flows. The facility is secured by underlying property and backed by Escrow of the lease rentals to be received from the lessee.

The term loans can be taken for purchase of commercial assets & business expansion needs. Including acquiring fixed assets like purchase of land, construction of building, purchase of machinery/equipment, modernization/technology up-gradation activities.

Working capital loan is provided in terms of cash credit, bill discounting, Letter of Credit, Bank Guarantee, Pre-shipment and post shipment finance, working capital demand loan etc. The working capital funds are generally required for purchase of raw materials, stores, fuel, for payment of labour, power charges, for storing finished goods till they are sold out & for financing the sales by way of sundry debtors / receivables.

Cash Credit (CC) is granted against hypothecation of stock such as raw materials, work-in-process, finished goods and stock-in-trade, including stores and spares. CC is granted by way of a running account, drawings to be regulated within the drawing limit permissible which is arrived at on the basis of composition of current assets and current liability based on the declaration in the stock statement in the prescribed format submitted by the borrower.

This type of facility fulfills the financial needs of those involved in the commodities business, such as farmers, traders and processors. A credit line up to a certain sum is offered for agricultural operations with agricultural commodities as securities, including those maintained in demat form.

Farmers who want to store their produce in warehouses to avoid distress sale immediately after harvest, Processors/ Traders who want to procure large quantities of produce during the season and process / sell over a period of time and Large processors who wish to store required quantity of commodity for future processing by contracting with sellers can benefit from the scheme.

Dropline overdraft is a facility in which you can overdraw your current account up to an agreed limit. Overdraft is an efficient form of borrowing as you pay interest only for the time you use the money. You can at any time deposit money into the account to reduce the outstanding balance or can draw out money whenever you need it as long as you do not exceed the limit. Interest is calculated daily on the fluctuating outstanding balance and is normally charged at the end of each month. The overdraft utilized determines the interest that will be payable by the customer. Overdraft against Property is a flexible product offering that allows you a combination of a Term Loan and Overdraft facility against residential or commercial property.