SME Loans By State Bank of India
TRADE and SERVICES SECTOR
To finance new trucks/tankers/trailers/tippers/luxury buses and Car etc and WC finance against receivables.(Take over from other Banks/FIs not allowed).
Profit making Corporates/Non-corporates (surface transport operators) owning more than 10 well-maintained vehicles (including the proposed).
Type of Facility
(i) Term Loan and (ii) Cash Credit limit to finance receivables.
Quantum of finance
Term Loan and CC combined : Minimum Rs. 10 lacs and maximum Rs. 10 crores for Corporates.
Term Loan: Maximum 5 years.
Repayment will be in Equated Monthly Installments (EMI), starting two months after disbursement. Cash Credit: Repayable on demand, renewal every year.
Term Loan and C.C : 20%
Eligible amount of finance
Term Loan:Cost on Road i.e. Billing price of the vehicle + Cost of body building + Road Tax & Insurance
Cash Credit : 80% of receivables.
Term Loan: Maximum 1% p.a. on the pre-paid amount, for the residual period.
Rate of Interest
As per Card Rates.
Primary :Hypothecation of vehicles financed as well as book debts.
- Unencumbered vehicles/immovable properties for a value not less than 25% of loan amount.
- Personal guarantee of promoters and two third-party guarantors.
As per Banks guidelines.
The bank?s bill finance product helps you bridge the fund gap between the date of sale of products to the receipt of payments.
The bank purchases the bill of exchange your company receives against a product sale, at a discount, thus doing away with the delay in realizing the receivables.
The extent of discounting would amount to the interest calculated till the payments for the original sale are realized, and will be determined on the basis of market interest rates as well as the credit rating of the borrower.
Cash Credit for Traders
SBI cash credit can be in the form of a running account, similar to an overdraft secured by a charge on current assets, that meets the frequent cash requirements of your trading cycle.
Term Loan for Asset Aquisition
The specialized product has been designed to help you purchase plant, machinery, land or other physical assets required during the growth and expansion of the your company.
Letters of Credit
The SBI offers Letters of Credit to facilitates your purchases of goods in trading operations, both domestic and international. Backed by the SBI's strong reputation, you will be able to build better trust in trade and forge business relationships faster.
The bank's vast network of branches and correspondent banks enables your enterprise to sustain a seamless flow of business on a wide platform.
Further, the bank's informed trade finance crew can provide you with sophisticated credit and trade information and market knowledge, helping you extract more value from business.
The SBI guarantees the creditworthiness or the business capacity of its clients through its financial and performance guarantees.
State Bank of India (SBI), with a 200 year history, is the largest commercial bank in India in terms of assets, deposits, profits, branches, customers and employees. The Government of India is the single largest shareholder of this Fortune 500 entity with 61.58% ownership. SBI is ranked 60th in the list of Top 1000 Banks in the world by "The Banker" in July 2012.
The origins of State Bank of India date back to 1806 when the Bank of Calcutta (later called the Bank of Bengal) was established. In 1921, the Bank of Bengal and two other banks (Bank of Madras and Bank of Bombay) were amalgamated to form the Imperial Bank of India. In 1955, the Reserve Bank of India acquired the controlling interests of the Imperial Bank of India and SBI was created by an act of Parliament to succeed the Imperial Bank of India.
The SBI group consists of SBI and five associate banks. The group has an extensive network, with over 20000 plus branches in India and another 173 offices in 34 countries across the world. As of 31st March 2012, the group had assets worth USD 359 billion, deposits of USD 278 billion and capital & reserves in excess of USD 20.88 billion. The group commands over 22% share of the domestic Indian banking market.
SBI's non- banking subsidiaries/joint ventures are market leaders in their respective areas and provide wide ranging services, which include life insurance, merchant banking, mutual funds, credit cards, factoring services, security trading and primary dealership, making the SBI Group a truly large financial supermarket and India's financial icon. SBI has arrangements with over 1500 various international / local banks to exchange financial messages through SWIFT in all business centres of the world to facilitate trade related banking business, reinforced by dedicated and highly skilled teams of professionals.