Vendor Finance, Vendor Finance in India – IDBI Bank Vendor Finance Program

Realization of funds blocked at various points of the value chain is one of the primary concerns of those involved in the business of manufacturing & supplying of various goods, and services to the corporates. Funds are required by the manufacturers/suppliers at two stages of the production viz, manufacturing stage and post-manufacturing stage. IDBI Bank's "Vendor Finance" product is so designed that all the links in the value chain remain adequately funded for smooth functioning of the vendor’s business.

The details are as mentioned in the table below: 
 

Sr. No

Field

Content

1

Eligible Segments 

All Vendors of large Corporates /Original Equipment Manufacturers (OEMs)

2

Nature of Loan Facility

  •  Overdraft / Cash Credit
  •  Letter of Credit, Bill Discounting /Financing against Invoices

3

Purpose

To fund the manufacturing and receivable cycle

4

Pricing

Interest Rate linked to Bank Base Rate

5

Security

For Working Capital: Hypothecation of entire current assets

For Term Loan: First/Specific Charge on Assets created out of Bank finance/entire fixed assets

Bill discounting:  Accepted Bill / invoice by the authorised officials of OEM/Corporate

Personal Guarantee of promoter/directors, as applicable   

6

Processing Fee

As per Bank's extant guidelines

About

IDBI Bank Ltd. is a Universal Bank with its operations driven by a cutting edge core Banking IT platform. The Bank offers personalized banking and financial solutions to its clients in the retail and corporate banking arena through its large network of Branches and ATMs, spread across length and breadth of India. We have also set up an overseas branch at Dubai and have plans to open representative offices in various other parts of the Globe, for encashing emerging global opportunities. Our experience of financial markets will help us to effectively cope with challenges and capitalize on the emerging opportunities by participating effectively in our country’s growth process.

IDBI Bank is the youngest, new generation, public sector universal bank that rides on a cutting edge core banking Information Technology platform. This enables the Bank to offer personalized banking and financial solutions to its clients. The Bank had an aggregate Balance sheet size of Rs.3, 28,997 crore and total business of Rs.4,33,460 crore as on March 31, 2014. IDBI Bank's operations during the financial year ended March 31, 2014 resulted in a net profit of Rs. 1121 crore

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