SME Loans By State Bank of India
Cash Management Product
The bank offers a totally technology-driven cash management product, based on the satellite-linked SBI FAST (for Funds Available in the Shortest Time) platform that connects 722 centers spread across the country. Your cash collections can be pooled at these centers at competitive rates.
Further, your cost centers at various locations can have a daily limit with the SBI's local branch which can be swept automatically into your main account located at your corporate center and reverse sweep shall take place next day morning. Thus Corporates can save on interest cost.
The SBI is planning to raise the number of its cash management centers to 500, which then would cover 90 per cent the bank's corporate clients financial transactions.
Q. What are the benefits of the SBI cash management product?
The cash management solution ensures a comfortable liquidity position within your corporation always and will significantly bring down transaction time and cost. Further, the quicker, more efficient and better-controlled cash circulation can actually create profit opportunities for the company.
The company will be better placed to forecast its cash positions and schedule related financial transactions accordingly.
e-VFS (Electronic Vendor Financing Scheme) & e-DFS (Electronic Dealer Financing Scheme)
e-VFS and e-DFS are fully automated and secured products, designed to ensure efficient management of working capital cycle of the corporate and sustained growth and profitability of business partners and the entire Supply Chain is taken care under the scheme. Under Supply Chain Finance bas has tied up with 65 Industry Majors with across all Industry verticals like Auto, Oil, Steel, Power, Fertilizer, FMCG and Textiles.
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 SBI 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.
SBI has the world's largest banking network of over 14,500 branches and this enables it to deliver the financial solution at your suppliers doorsteps, across the span of the country.
Construction Equipment Loan (CEL) :
Line of credit for financing the requirement of existing construction companies, having credit rating of SB-1 to SB-8 (new model), to purchase new machines / equipments / vehicles for execution of construction projects / standard construction equipments.
Quantum : Rs 3.00 crores to Rs 100.00 crores.
Pricing : Linked to the Base Rate of the Bank as per credit rating of the company.
Tenure : upto 4 years
Repayment : In monthly instalments. However, variable repayment programme can also be considered based on the cash flow of the company.
Others : The loan may be disbursed in several tranches, subject to minimum 10% of the sanctioned amount for any tranche, within a period of maximum one year from the date of sanction depending on requirement of equipments / machinery / vehicles within the specified time frame.
Corporate Loan :
Corporate Loan, an innovative product which is in existence, has been revamped/modified. Now, the Corporates with Borrower Rating of SB 10 and above, can avail finance without any CAP for the following purposes under " Corporate Loan Scheme" by way of Term Loan/WCTL with Repayment period not to exceed 10 years or the useful life of the fixed assets under cover, whichever is earlier.
- Shoring up the net working capital (NWC)
- Long term working capital requirements
- Ongoing capital expenditure such as replacement of parts of machineries, upgradation, renovation etc.
- Repayment of high cost debts
- Research and Development expenditure
- Implementing Voluntary Retirement Scheme in the company
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.