COMMODITY BACKED WAREHOUSE RECEIPT FINANCING

Purpose:

To finance traders/owners of goods against warehouse receipts of warehouses managed by Central Warehousing Corporations/ State Warehousing Corporation and warehouse accredited by MCX by way of Demand Loan/Cash Credit

Eligibility:

Any trader dealing in commodities

Eligible Amount of Finance:

Demand Loan: 75 % of the value of the warehouse receipt, valued at the market value OR80% of the minimum support price declared by State/Central GovernmentWhichever is lower.

Cash Credit: 70 % of the value of the warehouse receipt, valued at the market value OR75% of the minimum support price declared by State/Central Government, whichever is lower

Processing charges:

Cash Credit: Rs.300/- per lac for the facility sanctionedDemand Loan: Nil where loan is sanctioned and disbursed Rs. 300 per lac in case the loan is sanctioned but the borrower does not avail.

Margin:

Demand Loan: 25% (minimum) of the value of the warehouse receipt, valued at the market value OR20% (minimum) of the minimum support price declared by State/Central Government, whichever is higherCash Credit: 30% (minimum) of the value of the warehouse receipt, valued at the market value OR 25% (minimum) of the minimum support price declared by State/Central Government, whichever is higher

Insurance:

Comprehensive InsuranceInsurance cost to be borne by the warehouse receipt owner.

Security:

PrimaryCharge over warehouse receipt (resulting in charge over underlying goods), with lien marked in favour of the

bank.

CollateralPersonal guarantee of partners or directors as the case may be.

Repayment:

Demand Loan: The loan should be liquidated as and when the produce is sold during the interim period not exceeding 12 months.Cash Credit: Repayable on demand. To be brought to credit balance and DP made Nil/reduced when the quality certificate expires.

Others:a)     The Warehouse receipt should be duly marked lien in favour of the bankb)     The Branch should verify the authenticity of the warehouse receipt and get its lien noted with the warehouse before disbursal of the demand loan/ CC facility.c)     The margin shall be topped up on a fortnightly basis. However, it should be topped up immediately in case the price of commodity moves by more than 10%, in opposite direction, since last top up.d)     CC Limits and operating account will be different for different commodities handled by the same trader/customer. Interchangeability in limits can be offered, if required.

SURABHI DEPOSIT SCHEMESBI- SURABHI DEPOSIT -A new Savings Bank / Current Account product,introduced by L&TP Department of SMEBU, launched at all the Core Banking Branches of the Bank to cover non-individual customers like Corporates, Institutions, Trusts, PF Funds etc who have surplus funds for investments, but at the same time need the convenience of liquidity. This is a value added savings Bank account (for those who are permitted to open SB account)/current account with sweep and reverse sweep option.  

o Surplus funds over athreshold limit (Minimum – Rs. 50,000/-) with an initial deposit of Rs.10,000/- and in multiples of Rs.1,000/- in any one instance, is automatically swept (auto-sweep)to CLTD (Corporate Liquid Term Deposit)

o Customer has the flexibility to choose the period of deposit from 1 year to 3 years.

o Rate of Interest for CLTD will be the card rate applicable for the contracted tenure of the deposit.No differential rate of interest is applicable.

o Minimum Amount of deposit to be maintained for Current Account is Rs.10,000/- and for SB account is Rs.1000/-

o Whenever any cheque is presented by the customer, in case of inadequate balance in the savings / current account for payment of the cheque, the shortfall amount is broken in ‘last in first out’ basis from the CLTD and the cheque is honoured, without any hassle to the customer, through reverse sweep facility. At present this is available only for withdrawal through cheques, later the facility will be available for withdrawal through ATM cards also.

o No Loan /Overdraft Facility is available under the Scheme.

o Rules applicable for premature withdrawal for fixed deposit are applicable for the part amount of deposit broken for withdrawal, through reverse sweep.

o Usual formalities applicable for opening SB accounts/Current accounts, including KYC procedure, are applicable for opening accounts under the Scheme.

DEBT RESTRUCTURING MECHANISM

Debt Restructuring Mechanism for Small and Medium Enterprises (SME)

Salient Features of the Scheme:

i.Eligibility: The following entities, which are viable or potentially viable: a) All non-corporate SMEs banking with us irrespective of the level of dues.b) All corporate SMEs, which are enjoying banking facilities only from our bank, irrespective of the level of the dues to the bank.c) All corporate SMEs, which have funded and non-funded outstandings up to Rs. 10 crores under multiple/consortium banking arrangement.d) In respect of BIFR cases, branches will ensure completion of all formalities in seeking approval from BIFR before implementing the package.e) Wilful defaulters, in exceptional cases, will be considered as advised in para II below. Exclusions: • Accounts involving fraud and malfeasance or diversion of funds with malafide intent will not be eligible for restructuring under these guidelines.• Accounts classified by our Bank as “Loss Assets” will not be eligible for restructuring.

ii.Wilful Defaulters: RBI has advised that 'While Corporates indulging in frauds and malfeasance will continue to remain ineligible for restructuring under the

Debt Restructuring Mechanism for SMEs as hitherto, banks may review the reasons for classification of the borrower as wilful defaulter specially in old cases where the manner of classification of a borrower as a wilful defaulter was not transparent and satisfy itself that the borrower is in a position to rectify the wilful default provided he is granted an opportunity under the Debt Restructuring Mechanism for SMEs. Such exceptional cases may be admitted for restructuring with the approval of the Board of Directors of the Bank only.’

iii. Viability Criteria:

 The unit must become viable in 7 years and the repayment period for restructured debt will not exceed 10 years. For the purpose, all eligible units will comply with the following: (i) Debt Service Coverage Ratio: Should have average DSCR of more than 1.25 and morethan 1.00 in any year (ii) The breakeven analysis should be carried out, and operating and cash break even points should be worked out (iii) The company's past performance for 3-5 years and future projections for the period of proposed repayment would be examined. (iv) Promoters' sacrifice and additional funds brought by them should be a minimum of 15% of creditor's sacrifice.

iv.Procedure: i. The borrowers shall submit a request to the Branch/Small & Medium Enterprises City Credit Centre (SMECCC)/Stressed Assets Resolution centre(SARC) for restructuring his account in terms of Debt restructuring Scheme for SMEs. ii. In cases of eligible SMEs which are under consortium / multiple banking arrangement the borrower will submit his request to the Bank having the maximum outstanding. However, the restructuring package will be worked out with the consent of the bank having the second largest share. iii. After receipt of sanctions, the branch/SMECCC/SARC will complete documentation and implement the restructuring package. iv. The whole process will have to be completed within 90 days of the receipt of the application.

v.Reliefs and Concessions: 

The concessionary interest rate structure applicable to debt restructuring package will be as under:

Relief measure

The benchmark interestrate as prescribed by RBI

Minimum rates ofinterest proposed for restructuring 

Funding of unpaid interest to be converted into FITL 

1.5% below SBAR

3% below SBAR 

Conversion of irregular portion of cash credit account into WCTL

1.5% below SBAR

2% below SBAR 

Funding of cash loss tillbreakeven level

1.5% below SBAR

2% below SBAR 

Margin money for working capital and funds for start up expenses

1.5% below SBAR

2% below SBAR 

Further, the additional working capital / term finance, if any, will be provided at PLR as prescribed by RBI for normal restructuring schemes.

TRADERS EASY LOAN SCHEME

This scheme is launched by SBI to provide hassle free loan to Traders.Any business man/ entrepreneur/ Professional and self employed person can avail this loan. Loan under the scheme can be availed to meet normal business requirements and is sanctioned against equitable mortgage of property. Any residential or commercial property in the name of unit/ proprietor/partner OR their close relatives is acceptable. Agriculture property or property outside urban limits is not accepted.

The advance can be availed by way of Loan or Cash Credit limit. It can also be availed for Non Fund Based requirements (for issuance of Bank guarantees or LCs). Cash Credit limit or non fund based limit is renewable every 12 mths.Loan can be repaid in monthly or quarterly, even half yearly installments - as may be suitable to the borrower – in a period upto 5 years.

Minimum and maximum amount of loan is Rs 25,000/- and Rs 5.00 Crore. Margin is 35%. i.e. loan

can be upto 65% of the realizable value of the property or the business requirement- whichever is less. Business requirement is assessed on the basis of projected business turnover. Interest at floating rate is charged at monthly intervals on daily reducing balance.

No Third party guarantee is required to avail the loan.

Frequently asked Questions

1. What is this Scheme?

The Scheme is to provide loan to the Traders/ professionals/ entrepreneurs etc for their business needs on easy terms against property.

2.  Who can take this loan?

Any business man/ entrepreneur/ Professional and self employed person can take loan under the scheme

3. What is the amount of loan?

The amount of loan is Minimum Rs 25,000/-and Maximum Rs 5.00 Crore

4   What type of property is accepted?

Any residential or commercial property in the name of unit/ proprietor/partner OR their close relatives is accepted. Agriculture property or property outside urban limits is not accepted

5   What is the margin? How much loan is given?

The Margin is 35%. i.e. loan can be upto 65% of the realizable value of the  property. However, if business requirements are less, the lower of the two amounts will be sanctioned.

6   How is business requirement calculated?

It is based on projected business turnover.

7   What is the interest rate? Is it floating or fixed rate?

The interest rate in linked to SBAR. It would increase/ decease with changes in SBAR (floating rate). For cash credit it is 0.25% below SBAR and for loans 0.25% above SBAR. Presently it is 13% for term loan and 12.50% for the Cash Credit limit based on present SBAR of 12.75%

8    What is the method of calculating interest?

Interest is calculated and applied monthly on daily reducing balance

9    Can I get Cash Credit limit also? Can I get Guarantee/ LC limits also?

Yes.

10   Is there any processing charges?

Yes.1% of the loan amount.

11  What is the repayment period?

In case of Cash Credit it is reviewed by the Bank every 12 mths.Loan is to be repaid in maximum 5 yrs.

12 Whether repayment is monthly or quarterly

It can be monthly, quarterly, even half yearly depending upon the requirement of the borrower.

13  Is there any guarantor required for the loan?

NO. If property is owned by somebody else, than only owners’ guarantee is required.

14  Whether I will have to take insurance of the property?

Yes.

15  I have a loan account with other bank. Can I shift this to SBI under this scheme?

Yes.

16 What documents I would have to submit

Usual documents for identification and copy of the latest balance sheet, last income tax return etc and Advocate’s search report, title certificate and valuation certificate of the property that are normally required for creation of mortgage.

GENERAL PURPOSE TERM LOANS

State Bank of India grants term loans to small scale industries for meeting general commercial purposes like substitution of high cost debt,research and development, shoring up net worth and funding business expansion.

The tenor of the loan is normally is 3 years, and the pricing is fine-tuned to suit the risk profile of the borrower. The repayment is structured in monthly or quarterly installments, according to the cash generation cycle.

FAQs

What are the eligibility criteria for these term loans? The SSI unit that takes the loan should not have any history of defaults in payment of interest or installments of the principal. The unit should have a strong performance record and a respectable credit rating as per the bank’s own credit assessment scales ( In case of loan above Rs. 25 lakhs ) .

What is the type of security/guarantee required for the loan? Extension of hypothecation charge over the current assets and fixed assets is required as primary security. Further, the borrower whose aggregate loans with the Bank exceed Rs 5 lakh may explore the possibility of collateralizing tangible security such as immovable property and third party guarantee. In all cases, personal guarantees of proprietors/partners/promoters have to be furnished.

What are the margins applicable? A minimum margin of 25 per cent is applicable for acquisition of land and building, building construction, renovation of offices, showrooms, godowns, purchase of equipment, vehicles etc. In other words, the quantum of the loan will be restricted to 75 per cent of the total expenditure.

LIBERALIZED CREDIT FOR SSI

State Bank of India extends production-linked credit facilities to small-scale industries, ancillary industrial units and village and cottage industrial units on liberal terms and conditions.

Under this scheme, the quantum of advances is not linked to the security furnished, but the genuine requirements of the unit.

The pricing of the loan is based on credit assessment, and the units with strong ratings may be given finer rates.

No collateral security is required for loans up to Rs 5 lakh. Composite term loans can be sanctioned up to Rs 25 lakh combining term loan and working capital.

FAQs

Q. What are the types of financial assistance under the Liberalized scheme? A. The Liberalized scheme offers a range of financial products including the following:

1. Term loans for acquisition of fixed assets 2. Working capital loans financing current

assets 3. Letter of credit for acquisition of machinery

and purchase of raw materials 4. Bank guarantee in lieu of security deposits

to be made with government department/other departments for execution of orders.

5. Deferred payment guarantees for purchase of machinery on deferred payment basis.

6. Bill facility for purchase of raw materials and for sale of finished goods.

7. Composite loans (term loans plus working capital) up to Rs 25 lakh.

Q.What are the margins applicable?

A. For requirements up to Rs 25,000, no margins are involved. For limits ranging from Rs 25,000 to Rs 5 crore, the margin is set at 20 per cent.

For credit limits above Rs 5 crore, a 25 per cent margin may be applied.

ENTREPRENEUR SCHEME

State Bank of India grants financial assistance to technically qualified, trained and experienced entrepreneurs for setting up new viable industrial projects.

Loans are extended to technocrats who are unable to meet the normal margin requirements under the liberalized schemes.

FAQs

Q. What are the eligibility criteria for the Entrepreneur scheme? A.The borrower has to be a technically qualified person (a degree/diploma holder in engineering or technology), a craftsman with adequate experience or training or a person possessing a degree in business or industrial management, a chartered accountant or a cost accountant with relevant experience.

Q. What are the types of financial assistance under the Entrepreneur scheme? A. The bank provides:

term loans, working capital and equity fund finance

Q.What are the margins applicable? A. For requirements up to Rs 5 lakh, no margins are involved. For needs ranging from Rs 5 lakh to Rs 20 lakh, the margin is set at 10 per cent.

EQUITY FUND SCHEME

Under the Equity Fund scheme, the SBI grants financial assistance to entrepreneurs who are not able to meet their share of equity fully, by way of interest-free loans repayable over a long period.

This type of assistance fills in the gap between the margin requirements in the project and the capital contributed by the promoter. The Equity Fund assistance can be normally repaid over 5 to 7 years after the moratorium period.

FAQs

Q. What are the eligibility criteria for the Equity Fund scheme? A. The bank extends Equity Fund assistance only to new projects, which are also eligible for the SBI’s Liberalized scheme and the Entrepreneur scheme. The project cost has to be more than Rs 25,000.

Q. What type of security is required for the equity fund assistance? A. Security available for other loans should be extended to cover equity assistance also.

STREE SHAKTI PACKAGE

The Stree Shakti Package is a unique scheme run by the SBI, aimed at supporting entrepreneurship among women by providing certain concessions. An enterprise should have more than 50% of its share capital owned by women to qualify for the scheme.

The concessions offered under the Stree Shakti Package are:

1. The margin will be lowered by 5% as applicable to separate categories.

2. The interest rate will be lowered by 0.5% in case the loan exceeds Rs 2 lakh.

3. No security is required for loans up to Rs 5 lakh in case of tiny sector units.

SME OPEN TERM LOAN

Nature of Facility:          The product is a pre-approved term loan facility

which can be disbursed over a period of 12 months depending on unit’s request.

         The units get comfort of preapproved sanction to plan their capital expenditure and negotiate with suppliers of machinery to finalize the best possible terms and then get the loan disbursed.

Facility available for:i.              All units under manufacturing sector.ii.             Under Service sector: Educational Institution,

Healthcare Industry (Hospital, Doctors, Pathological Labs, and Nursing Home), Hospitality Industry (Hotels, Restaurants, and Health Club etc), and Transport Operators with minimum 25 vehicles.

 Purpose of LoanAny genuine commercial purposes in line with regular business activity of the customer. These would include         Expansion and modernization.         Substitution of high cost debts/ high cost term

debts of other banks/FIs.         Design and introduction of new lay-outs in the

factory to enhance productivity.         Up gradation of technology & energy

conservation schemes/ machinery.         Acquisition of software, hardware, consumable

tools, jigs, fixtures, vehicles, equipment , furniture upholstery etc.

         Acquisitions of ISO & other similar certifications.         Visits abroad for acquiring technology, finalizing

business deals, participating in exhibitions/ fairs for market promotion etc.

         R&D activities of the units in overall business development objective

 Loan Amount Maximum Rs 2.50 crore for both manufacturing and services enterprises, subject to credit rating and purpose of the loan. Margin requirement:Minimum 10%  Repayment Period3- 5 years. Interest RateFloating rate linked to Base Rate. SecurityPrimary Security: Hypothecation / pledge of the assets proposed to be purchased out ofthe term loan.Collateral Security: As per Bank’s norms.

 

RETAIL TRADE

The Bank finances Small Business activities that can be started with relatively lower investment and with no special skills on the part of the entrepreneurs.

In this category, the SBI extends loans to retail traders who act as a vital link between the manufacturers of goods or commodities and the consumer.

The bank offers working capital products as well as loans for purchase, renovation and repairing of equipment.

Retail trade finance is normally capped at Rs 5 lakh. Any individual or a firm (partnership or proprietorship) engaged primarily in buying and selling mercantile goods is eligible for this mode of finance.

For requirements up to Rs 25,000, no margins are involved. For needs ranging from Rs 25,000 to Rs 50,000, the margin is set at 20 per cent. In other words, the quantum of the loan will be restricted to 80 per cent of the unit's expenditure. For fund needs above Rs 50,000, a 25 per cent margin may be applied.

Security

Primary Collateral

Loan uptoRs.25000/-

Charge over the assets purchased out of Banks finance.

Nil

AboveRs.25,000/-

Charge overthe assets purchased out of Banks finance.

Charge Over the immovable/movable assets/third party guarantee as per

RBI guidelines.

PARYATAN PLUS

Target Group         Individuals, partnerships, Corporates, trusts         All segments of tourism mainly:

-       Hospitality Industry-       Transportation-       Travel agents-       Tour Operators-       Adventure tourism-       Religious tourism

 Purpose          Construction/Renovation/ Modernization/

Expansion of hotels, rest houses, Yatri Niwas          Construction of office premises, purchase of office

equipment and computers by travel agents/ tour operators.

         Purchase of vehicles (Luxury buses, Coaches, Cars, Vans) at tourist sites.

         Purchase of house boats and luxury boats          Setting up of restaurants/ coffee houses/ ice-

cream parlours/ fast food centres, amusement parks/rope ways, health clubs/ spas, etc.

 Type of facilities         Cash Credit (Hypothecation) for Working Capital          Term Loan         Letter of Credit/ Guarantee

 Quantum of finance         Minimum Rs.2 lacs Margin         Minimum 20% Rate of Interest         Interest is floating and linked to Base Rate*.

* Subject to change. Insurance         The assets created out of Bank’s finance are to be

insured for the full value.

 

Security         Primary- Hypothecation of assets financed by

Bank         Collateral- Tangible Collateral in the form of

immovable property, TDRs, NSCs, KVPs, LIC policies etc equivalent to 50% of the total loan amount may be obtained.

         Loans upto Rs.25 lacs are to be covered under CGTMSE scheme. Further loans above Rs.25 lacs upto Rs.1 crore may be covered under CGTMSE at the discretion of the Bank. CGTMSE fees to be borne by the borrower.

Processing Charges/ Upfront fee         For Term Loan: Upfront fee ranges from 1.00% to

1.50% of the loan amount.

TRANSPORT OPERATORS

Under small business finance, the SBI extends loans to transport operators in different forms. The bank offers working capital products as well as term loans for purchase of vehicles. The bank finances up to 10 vehicles irrespective of the loan amount.

All transport operators whether individuals or associations of not more than six persons are eligible for this mode of finance.

For requirements up to Rs 25,000, no margins are involved. For needs above Rs 25,000, the margin may range from 15 per cent to 25 per cent.

Security

  Primary Collateral

Loan uptoRs.25000/-

Charge over the assets purchased out of Banks finance.

Nil

AboveRs.25,000/-

Charge overthe assests purchased out of Banks finance.

Charge over the immovable/movable assets/third party guarantee as per RBI guidelines.

AUTO LOAN

Eligibility Maximum age of the proprietor – 60 years Minimum of 1 year of existence for

proprietors and three years for corporates and partnership firms

Minimum net income of Rs. 1 lakh for last two years

Minimum turnover of Rs. 5 lakhs for proprietorship, 10 lakhs for partnership and Rs. 6 lakhs for Corporates.

Purpose Purchase of new car/ jeep/ MUV of any

model by non individuals Proprietors are eligible to purchase old

vehicles (not more than 4 years old)

Nature of facilityTerm loans

Margin Term loan for new vehicle up to Rs 6 lakhs

– 15% Term loans over 6 lakhs for old vehicles

up to 2 years – 30% Old vehicles of 2 to 4 years – 40%

Tenure of Loan Term loan

Repayable in 84 months for new vehiclesRepayable in 60 months for old vehicles up to 2

years oldRepayable in 36 months for vehicles more than 2

years and up to 4 years old Short term loan is repayable in 36 monthly

installments (new and up to 2 year old vehicles only)

Primary securityHypothecation of the vehicle by noting Banks charge on in the books of SRTOCollateral securityTangible security of borrower or guarantor valued for not less than 35% of the loanPost dated cheques to be obtained for the EMIsPersonal guarantees of the MD and other directors in case of corporates

Loan amount 2 times the net annul income/annual cash

accruals less repayment obligations Maximum of Rs. 2 lakhs in the normal

course for new vehicles

Rate of Interest

SME SEGMENT

Artisan Credit Card

Size of credit limit Interest rateUpto Rs 50,000 Base Rate + 2.50%Over Rs 50,000 Base Rate + 3.50%

 

General Purpose Term Loan for SSI

Facility Interest Rate for period upto 3 years

Working Capital Loan & Term Loan

Ranging from Base Rate+ 4.75% to Base Rate +

 (Based on Credit Risk Assessment

Model)

6.50%

 

Note: Appropriate tenor premium will be added for term loans above 3 years.

SME Credit Card

Facility Interest Rate for period upto 3 years

Working capital and term loan

 

Base Rate + 3.25% to Base Rate + 5.00%

 

Note: Appropriate tenor premium will be added for term loans above 3 years

SME Smart Score

Facility Interest Rate for period upto 3 years

Working capital and term loan

 

Base Rate + 2.50% to Base Rate + 5.00%

 

Note: Appropriate tenor premium will be added for term loans above 3 years

 SME Open Term Loan (SME OTL)

Facility Interest Rate for period upto 3 years

Term Loan (Based on Credit Risk Assessment

Model) 

Base Rate + 4.75% to Base Rate + 6.50%

 

Note: Appropriate tenor premium will be added for term loans above 3 years

Rice Mill Plus

Facility Interest Rate for period upto 3 years

Working Capital Loan & Term Loan(Based on Credit Risk Assessment

Model)

Ranging from Base Rate+ 2.25% to Base Rate + 4.25%

 

Note: Appropriate tenor premium will be added for term loans above 3 year

Doctor Plus Scheme

Amount Rate of Interest

Below Rs.25 Lacs Base Rate + 3.25% to

Base Rate + 4.25%

Rs.25 Lacs and above Base Rate + 3.25% to

Base Rate + 4.50%

 

Transport Plus

Term Loan Base Rate + 4.50%

Cash Credit Base Rate + 5.25%

 

School Plus

Base Rate + 3.50% to Base Rate + 5.25%

 

Rent plus

Tenure Rate of Interest

Upto 3 years Base Rate + 4.50%

Above 3 years upto 7 years

Base Rate + 4.75%

Above 7 years upto 10 years

Base Rate + 5.00%

 

 PARYATAN PLUS

Amount Rate of Interest

Below Rs.25 Lacs Base Rate + 3.25% to Base Rate + 5.00%

Rs.25 Lacs and above Base Rate + 4.25% to Base Rate + 7.50%

 

Note: Appropriate tenor premium will be added for term loans above 3 years

  

RICE MILLS PLUS

Eligibility         Profit making existing units with credit rating

SB9 and above,         Takeover of good units is also permitted, subject

to observance of take-over norms.         New Units with CRA rating SB7 and above Purpose         Acquisition of machinery/factory building for

modernization/expansion,         Working capital needs.

Nature of facility          Term loans         Cash credit         Outward Bill limited         Letter of credit         Bank Guarantees,         SME credit plus.

Margin         Term loan - 15% - 25%         Working capitals Stocks:-         Paddy &Rice - 15%-20%         Brokens-20%         Bran-30%         Gunny bags-40% Book debts- 40 %( cover period – max.60days)Margin for book debts can be lowered upto 25% where adequate collateral is available. A lower margin of 25% may be approved in deserving cases by the controlling authority.

Loan amount          Term loan based on project cost, no upper

ceiling         Working capital needs, under both mundy type/

hypothecation sub limit covering outward bills drawn on government departments/FCI/public sector units may be liberally considered on need based approach with a cover period upto 60 days.

Primary security Hypothecation/ pledge over assets created out of bank finance.

Collateral security Loan over 5lakhs: Equitable mortgage of property/ tangible security belonging to borrower/ guarantor valued not less than 75% of the loan amount. Rate of InterestAs per the rating of the Firm/Company

Repayment Working Capital: 12 Months, renewable after 12 months subject to satisfactory conduct of account . Term loan will be paid between 5 to 7 years excluding the maximum gestation period of 12 months.

SCHOOL PLUS

Target Group          Primary and Higher secondary schools         Graduation, Under-Graduation and Post

Graduation colleges 

Eligibility         Government Aided Schools/ Colleges         Private schools/ colleges         Schools/ colleges run by trusts of good standing         Technical institutes recognized by AICTE / NBA /

MCI

Purpose         Loan for purchase of land for building/

playground, construction of school building/ auditorium, purchase of computer, books, furniture, repair/ renovation of existing building etc.

Type of facilities

         Term Loan with fixed repayment schedule based on repayment capacity and income streams.

 Quantum of Finance :         No cap Margin         15% of the project cost Rate of Interest         Interest is floating and linked to Base Rate*.

* Subject to change. Security         Primary- Hypothecation of Assets purchased out

of Bank finance.         Collateral:

-       Personal guarantee of Promoters/ Trustees/ any other persons acceptable to Bank.

-       For loans upto Rs 10.00 lac, equitable mortgage of land and building or third party guarantee for 20% of the loan amount. For loan above this amount, equitable mortgage of other immovable assets of the institute/ guarantor.

 Processing fee         Processing fee ranges from 1.00% to 1.50% of the

loan amount. 

Insurance

         The assets created out of Bank’s finance are to be insured for the full value.

Repayment         Loan amount up to Rs.2 lacs – Repayable in 36

equated monthly installments.         Loan amount from Rs.2 lacs to Rs.5 lacs –

Repayable in 60 equated monthly installments.         Loan amount above Rs.5 lacs – Repayable in 84

equated monthly installments.

 

SWAROJGAR CREDIT CARD

Eligibility

Individuals or group of individuals engaged in any viable micro-enterprise.SHGs can also be provided with the facilities.

Purpose

To provide timely credit (working capital or block capital or both) To meet the investment needs of the self-employed persons A reasonable component of consumption needs can also be included.

Nature of facility

Composite loan comprising of a term loan as well as revolving cash credit account. The borrower can avail

the entire mount as term loan or for working capital as per the actual requirement.

Margin NIL

Loan amount Rs. 25,000 per borrower as composite loan, which can be increased to Rs. 30,000 in deserving cases.

Tenure of Loan

The term loan is repayable in 5 years in suitable installments. Cash credit should be normally repaid in 12 months and renewed annually based on the conduct of the account and the repayment of the term loan.Primary security Assets acquired for Bank finance

Collateral security NIL

SBI SME COLLATERAL FREE LOAN

Eligibility

         New and existing Micro and Small Enterprises engaged in Manufacturing and Service sector. For Manufacturing sector, original investment in plant & machinery should be upto Rs 5 crore and for Service sector, original investment in equipment upto Rs 2 crore.

 Purpose         Working capital needs (Fund Based+ Non Fund

Based).        Term loan for construction of Building, office,

acquisition of machines / equipments including expansion and modernization of the unit.

Nature of Facilities

        Cash Credit,         Term Loan         Letter of Credit,        Bank Guarantee

 Loan Amount        Total Exposure to the unit : Upto Rs. 1.00 crore

(All facilities WC, TL & NFB facilities)

 Interest Rate        Attractive rates of interest.

 Service Charges         50% concession in processing and service

charges.          Other charges as applicable.

  Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE) Guarantee

         Borrowers eligible under the scheme will be covered under CGTMSE guarantee scheme.

         The Guarantee Fee & Annual Service Fee as per the rates prescribed by CGTMSE from time to time to be borne by borrower.

  Security         Security as defined by CGTMSE : “Primary

Security” in respect of credit facility shall mean the Assets created out of the credit facility so extended and / or Existing Unencumbered assets which are directly associated with the project or business for which the credit facility has been extended. (i.e. Plant, Machinery, land & building pertaining to the project or business).

         Guarantee: No third party guarantee is required. However in case the constitution of the borrower is proprietary or partnership, the personal guarantee of proprietor /partner is not treated as third party guarantee

 Repayment 

         Working Capital (WC): One year, repayable on demand.  Working capital limits will be renewed every two year. However, performance of the unit and conduct of account will be reviewed annually for continuation of limits.

         Term Loan: Maximum Seven Years including moratorium period.

SME CAR LOAN SCHEME (New Cars)

Target Group         SME units banking with us/ SME current account

holders of the Bank or their family member either in their own name or in the unit’s name.

         SME units banking with other Banks.         Mid corporate units banking with us.

Purpose         To provide term loan for purchase of passenger

cars, jeeps, multi utility vehicles (MUVs) and sports utility vehicles (SUVs) etc.

 Type of facilities         Term Loans Quantum of Finance         Loan maximum upto 2.5 times of the Net Annual

Income (NAI)

Margin         15% of the ‘on road price’ of the vehicle  Rate of Interest         Interest is floating and linked to Base Rate*.

* Subject to change. Security         Collateral Security- Hypothecation of vehicle (s)

purchased.

 Repayment         Maximum 7 years         No prepayment penalty. Insurance

         The vehicles purchased out of Bank’s finance are to be insured for the full value.

 

Processing Charges

         When loans are sanctioned: 0.50% of the loan amount subject to minimum of Rs.500/- and maximum of Rs.10,000/-.

         When loans are rejected: 25% of the ‘Processing Fee’ will be retained if the application is rejected after pre-sanction survey subject to minimum of Rs.500/- and maximum of Rs.2500/-

FINANCE TO RESTAURANTS

Target Group          Owners of restaurants/ fast food chains

Eligibility         Individuals/ partnership firms/ corporate/ trusts

Purpose         For purchase of Kitchen equipments         For investment in Interior decoration         For purchase of furniture and fixtures         For purchase of land and construction of buildings Type of facilities         Term Loan or overdraft

Quantum of Finance :         Investment in the Restaurant for the

aforementioned purposes less margin / promoters contribution whichever is lower.

 Repayment         Repayment period of up to 7 years when land and

building cost included in loan, otherwise 5 years. Margin         25% Rate of Interest         Interest is floating and linked to Base Rate*.

* Subject to change. Security         Primary- Hypothecation/ Pledge of the assets

financed by the Bank.         Collateral:

-       Personal guarantees of proprietors/partners/promoters

-       Extension of charge over current assets, Fixed assets and other existing collateral if any

-       Additional tangible security such as immovable property, bank deposits, etc.

         Loans upto Rs.25 lacs are to be covered under CGTMSE scheme. Further loans above Rs.25 lacs upto Rs.1 crore may be covered under CGTMSE at the discretion of the Bank. CGTMSE fees to be borne by the borrower.

  Insurance

         The assets created out of Bank’s finance are to be insured for the full value.

 

Processing fee         Processing fee ranges from 1.00% to 1.50% of the

loan amount.

 

SME SMART SCORE

Simplified Loan For Small & Medium Enterprises

Eligibility:Scheme is available to small and medium enterprise units engaged in manufacturing, trade or services. Purpose of loanWorking Capital requirements & Purchase of fixed assets like land, building, plant & machinery Type of Facility:Working capital & Term loan Loan Amount:          For manufacturing units total limits upto Rs 50

lacs 

         For trade & services units total limits upto Rs 25 lakhs.

 Margin Requirement: 25% for working capital and 33% for Term Loan  Rate of Interest:Floating rate of interest linked to Base rate. Repayment:          Term loan to be repaid in 5 years excluding

moratorium not exceeding 6 months         Working Capital loan to be renewed every two

years and reviewed annually subject to satisfactory conduct of account.

 Security         Primary: Hypothecation of stocks and assets

financed by Bank         Collateral: As per bank’s norms. Special Features:          A simplified loan application format          Concessionary rate of interest         Quick and hassle-free loan sanction process

 

SBI OTS MSME, 2012

SBI SCHEME FOR ONE TIME SETTLEMENT OF NPAs of MSME (SBI OTS - MSME, 2012) .

1. Salient Features :

i. This will be a non-discretionary and non-discriminatory scheme. ii. Last date of receipt of application : 31.07.2012 iii. Last date for Conveying sanction : 30.09.2012 iv. The scheme will be applicable to doubtful or loss assets in MSME Sector as defined in the MSMED Act, 2006. v. While arriving at OTS amount, the value of tangible security will be the basic criteria, except in loss assets.2. Coverage :

i. It will cover all NPAs classified as “doubtful” and “loss’’ in respect of Micro, Small and Medium Enterprises as defined in the MSMED Act, 2006.

ii. Cases pending before Courts / DRTs / BIFR will be eligible, subject to consent decree being obtained from the Courts / DRTs / BIFR.

iii. Cases where Bank has issued notice u/s 13(2) or taken action u/s 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI-2002) will be eligible.

iv. Eligible accounts referred for Revenue Recovery action under State Recovery Laws will be eligible, subject to requisite charges, if any payable, being recovered separately and remitted to the State Authorities.

v. Accounts under Consortium or Multiple Banking arrangements will also be eligible to be covered under the proposed Scheme subject to approval by 75% of the lenders by amount.

vi. Decreed cases will also be eligible subject to the consent by the DRT/Court.

 

2.1. Cases not eligible to be covered under the scheme.

i. Cases of fraud, malfeasance and wilful defaults (except where specifically permitted by the Bank ) will not be eligible.

iii. The accounts which were classified as ‘Not Readily Realisable Account’ (NRR Account) at the time of amalgamation of various banks in SBI (e.g. Kashi Nath Seth Bank, Bank of Cochin etc.) will not be covered under this scheme as the powers to

sanction compromises in such cases are vested with ECCB.

iv. Central Govt. /State Govt. guaranteed accounts will not be considered under this scheme as they are covered by a separate scheme approved by the Central Board.

3. Settlement Formula – OTS Amount:

While arriving at OTS amount, the value of security available should be the basic criteria, except in ‘Loss’ assets. Accordingly, the OTS amount in respect of NPAs (Doubtful and Loss) would be calculated as under:

Sl.No

Particulars

I. OTS for NPAs in Doubtful category

A Distress Sale Value

75% of the Market Realisable Value (MRV) of all available securities (Immovable/ movable) to be treated as “Distress Sale Value”.

(Two independent valuations are to be done and 75% of higher valuation should be taken) @

B Reference Recoverable Amount

i) Outstanding Balance as on the date of NPA (i.e. Principal Outstanding + Interest + Cost & Charges, if any)

ii) Add : Simple interest at documented rate or Prime Lending Rate (PLR-2%) / Base rate, whichever is lower, on reducing balance, from the date of NPA till the date of crystallization of OTS (i.e. up to the last date of preceding month when the OTS proposal is submitted)

iii) Add : Debits raised in the account on behalf of the borrower for holding on operations / additional finance on account of restructuring, devolvement LC/BG etc.

iv) Less : Cash recovery i.e. cash recovery and amount of appropriation of liquid securities, after the date of NPA till the date of crystallization of OTS (i.e. up to the last date of preceding month when the OTS proposal is submitted).

v) Reference Recoverable Amount = {(i)+(ii)+(iii)-(iv)}

C OTS amount would be higher of the two amounts as worked out at A and B.

 

II. OTS for NPAs in Loss category

A Reference Recoverable Amount

i) Outstanding Balance as on the date of NPA (i.e. Principal Outstanding + Interest + Cost & Charges, if any)

ii) Add : Debits raised in the account on behalf of the borrower for holding on operations / additional finance on account of restructuring, devolvement LC/BG etc.

iii) Less : Cash recovery i.e. cash recovery and amount of appropriation of liquid securities, after the date of NPA till the date of crystallization of OTS (i.e. up to the last date of preceding month when the OTS proposal is submitted).

iv) Reference Recoverable Amount = {(i) + (ii)-(iii)}

@ Valuation of properties

For accounts with outstandings upto Rs.1 cr, valuations as recorded in the Bank’s books, will be taken into account for arriving at OTS amount . However, if the borrower has any objection, two independent valuations by the Bank’s empanelled valuer will be done, the cost of which will be borne by the borrower. In all other cases , two independent valuations will be a must. However, in case a valuation has been carried out within six months prior to the OTS proposal, only one fresh valuation will be required. The cost of the valuations will be borne by the borrower.

 

4. Incentive for Early Payments

To incentivise faster payments, incentive of 15% and 10% discount on OTS amount arrived at as per the settlement formula given above, would be allowed to those borrowers who make full payment within one month and three months respectively from the date of approval of the OTS.

5. Payment Terms :

i. The borrower has to deposit 5% of the amount outstanding as on the date of NPA at the time of submission of the application to indicate his willingness for OTS, failing which the application will not be processed. In the event the application for OTS is rejected by the Bank, such payment, which shall be held in a separate account, will be refunded without interest within three months.

ii. The borrower has to deposit 25% of the OTS amount upfront on receipt of sanction letter. This will include the amount deposited along with the application for OTS.

iii. The balance 75% of the OTS amount is to be paid, without interest, within six months from the date of sanction of OTS.

iv. However, the balance amount can also be paid within 12 months from the date of sanction of OTS (the validity period) together with interest @ the documented rate/(PLR-2%)/Base rate, whichever is lower, failing which the OTS sanction will be rendered infructuous.

 For further queries, if any, nearby branches may be contacted.

PROJECT FINANCE

Project Finance Strategic Business Unit

A one-stop-shop of financial services for new projects as well as expansion, diversification and modernisation of existing projects in infrastructure and non -infrastructure sectors .

Expertise

Being India's largest bank and with the rich experience gained over generation, SBI brings considerable expertise in engineering financial packages that address complex financial requirements.

Project Finance SBU is well equipped to provide a bouquet of structured financial solutions with the support of the largest Treasury in India (i.e. SBI's), International Division of SBI and SBI Capital Markets Limited.

The global presence as also the well spread domestic branch network of SBI ensures that the delivery of your project specific financial needs are totally taken care of.

Lead role in many projects Allied roles such as security agent,

monitoring/TRA agent etc. Synergy with SBI caps (exchange of leads,

joint attempt in bidding for projects, joint syndication etc.). In a way, the two institutions are complimentary to each other. We have in house expertise (in appraising projects) in infrastructure sector as well as non-infrastructure sector. Some of the areas are as follows: Infrastructure sector:

Infrastructure sector:

Road & urban infrastructure

Power and utilities

Oil & gas, other natural resources

Ports and airports

Telecommunications

Non-infrastructure sector:

Manufacturing: Cement, steel, mining, engineering, auto components, textiles, Pulp & papers, chemical & pharmaceuticals …

Services: Tourism & hospitality, educational Institutions, health industry

…

Expertise

Rupee term loan Foreign currency term loan/convertible

bonds/GDR/ADR Debt advisory service Loan syndication Loan underwriting Deferred payment guarantee Other customized products i.e. receivables

securitisation, e.t.c.

Why Project Finance SBU?

Since its inception in 1995 the Project Finance SBU has built-up a strong reputation for it's in-depth understanding of the infrastructure sector as well as non-infrastructure sector in India and we have the ability to provide tailor made financial solutions to meet the growing & diversified requirement for different levels of the project. The recent transactions undertaken by PF-SBU include a wide range of projects undertaken by the Indian Corporates.

What's in it for you?

Single window solution

Appetite for large value loans.

Proven ability to arrange/syndicate loans.

Competitive pricing.

Professional team

Dedicated group with sector expertise.

Panel of legal and technical experts.

Procedural ease

Standardized information requirements.

Credit appraisal/ delivery time period is minimized.

Wide branch network ensuring ease of disbursement.

Eligibility

The infrastructure wing of PF SBU deals with projects wherein

The project cost is more than Rs 100 Crores. The proposed share of SBI in the term loan is more than Rs.50 crores. In case of projects in Road sector alone, the cut off will be project cost of Rs.50 crores and SBI Term Loan Rs. 25 Crores, respectively.

The commercial wing of PF SBU deals with projects wherein ;

The minimum project cost is Rs. 200 crores (Rs. 100 crores in respect of Services sector). The minimum proposed term commitment is of Rs. 50 crores from SBI.

For project funding requirements below the amounts indicated above, you may kindly contact the nearest branch of the SBI Group.

Contact usOur team is well known for innovation in tailoring solutions for our clients. If you are seeking solutions in project finance,We will be glad to assist you. please contact us. E mail id: milind.kalkar@sbi.co.in

Or Call at: +91 (022) 22841262

CORE CREDIT PRODUCTS

  PurposeType

of Loan Pricing

Rupee Loans

Working Capital

Cash Credit facility Based on credit risk rating of the Company designed on the lines of internationally accepted models, ranging from our Base Rate (BR) upwards.

  Project & Capex loans

Medium Term Loans 5-7 years or longer in exceptional cases

Same as above - Base Rate (BR) upwards.

  Export Credits Packing Credit, Postshipment , Forfaiting

RBI Defined LIBOR linked and Market Determined

Foreign Currency Loans

Projects & Work. Cap

External Commercial Borrowings(ECBs) which include Syndicated loans, Stand-alone loans,Buyers'Credit and Seller's Credit, Bilateral loans in all major currencies, ECA backed credits, FRNs/Euro bonds(with SBICAp), Pre-bid and post bid facilities for project exports and FCNR(B) Loans

LIBOR linked

OTHER STRUCTURED PRODUCTS

  Purpose PricingShort Term Corporate Loans

For Shoring up Net Working Capital, Ongoing capital expenditure, Repayment of high cost debt, R&D expenditure, implementation of VRS

Based on the Credit risk rating - Linked to our Base Rate (BR)

Securitised loans- in association with SBICAP

Upfronting of assured cash flow emanating from future receivables viz. rentals, Royalties, debtors, Lease rentals etc.

Based on risk rating

Channel Financing- in association with other SBI branches

Financing of downstream marketing channels

Based on the Credit risk rating - Linked to our Base Rate (BR)

Fee Based Products - like Letter of Credits(LCs), Guarantees, Defferred Payment Guarantees(DPGs)

For import of goods including capital goods participation in international bids, performance guarantees etc.

Large value business - negotiable.

and Letter of Comfort

TRADE FINANCES

         Issuance and advising of Domestic and

Foreign Letters of Credit.

         Confirmation of Export Letter of Credit.

         Issuance of Guarantees on behalf of Domestic

Customers

         In favour of Domestic Beneficiaries and

         Foreign Beneficiaries.

         Issuance of guarantees on behalf of foreign

correspondent banks to beneficiaries in India.

         Deferred Payment Guarantees.

         Domestic and Foreign Bills discounting.

         SWIFT Interface.

         (e-TradeSBI) Front-end interface

(Internet Based) at the customer place.

Through e-TradeSBI, the customer can

request the Bank;

         To issue Letter of Credit and handle

related bill transactions

         To issue Bank Guarantee

         To send advice on Letters of Credit

received from others

         To lodge Export Collection Bills

         To enquire status of Trade Finance

transactions

         For negotiation of bills and track

negotiated bills

         For Advance against Export Bills on

Collection

         For Lodge of Bills where Full Advance

Payment has been received

         Delivery Platforms at all 6 CAG branches having

specialization to provide Trade Finance Services,

adhering to Six Sigma principles.

         While SBI is the most widely accepted Indian

Bank across the world with correspondent

relationship extending to a spectrum of

international banks numbering 876 at present our

LCs, Guarantees and DPGs are issued at the most

competitive rates.

         SBI is the only Indian Bank whose guarantee is

accepted by most of the Export Credit

Agencies globally without seeking

confirmation.

         SBI's Clean & Documentary Collections are

made at most competitive rates through our

Global Link Services.

         We also provide trade related information to

Indian corporates, their overseas

partners/buyers through our foreign offices.

INDUSTRIAL SECTOR

Working Capital Finance

SBI offers 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 SBI 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.

SBI’s working finance products comprise a spectrum of funded and non-funded facilities ranging from cash credit to structured loans, to meet the different demands from all segments of industry, trade and the services sector. Funded facilities include cash credit, demand loan and bill discounting. Demand loans are considered also under the FCNR (B) scheme. Non-funded instruments comprise letters of credit (inland and overseas) as well as bank guarantees (performance and financial) to cover advance payments, bid bonds etc.

Project Finance The SBI has formed 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.

Deffered Payment Gaurantees

Q. What is the SBI deferred payment guarantee?SBI 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.

Corporate Term Loan

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

Corporate term loans can be structured under the FCNR (B) scheme as well, with the option of switching the currency denomination at the end of interest periods. This will help you take advantage of global interest rate trends vis-à-vis domestic rates to minimize your debt cost.

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

SBI 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.

SBI 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.

Structured Finance SBI structured finance 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.

Q. What is the SBI advantage in structured finance?Being India’s largest bank and with the rich experience that it brings with it, SBI commands formidable expertise in engineering financial packages that address complex requirements with minimum risk.Further, SBI has 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.

Dealer Financing SBI extends 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.

Channel FinancingChannel 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 9,000 branches and this enables it to deliver the financial solution at your suppliers’ doorsteps, across the span of the country.

Equipment Leasing The SBI’s has deployed 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. At SBI, we arrange lease agreements as stand alone contracts or as part of a structured package.

Loan Syndication The SBI leverages its vast network of relationships to arrange syndicated credit products for corporate clients and industrial projects.

With its rich experience and strong reputation, SBI’s syndication desk can assemble large loan packages involving a ring of reputed financial entities, domestic and international, that match the large credit requirements of infrastructure projects.

 TRADE and SERVICES SECTOR

Transport Plus

Purpose To finance new trucks/tankers/trailers/tippers/luxury buses including take over of existing similar loans from other banks/institutions.

Eligibility Profit making Corporates/Non-corporates (surface

transport operators) owning more than 10 well-maintained vehicles (including the proposed).

Quantum of financeMinimum Rs. 10 lacs and maximum Rs. 10 crores.

RepaymentTerm 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.

Margin 20%

Eligible amount of finance

Term Loan: 100 % of the cost of the chassis, inclusive of excise duty. Other expenses are to be borne by the borrower. Where body building is not required, 80 % of the cost of the vehicle will be financed. An additional Term Loan limit, subject to a maximum of 20% of the original limit may be sanctioned for repair of the vehicle, on or after the 3rd year if the loan account is regular.

Cash Credit : 80% of receivables.

PrepaymentTerm Loan: Maximum 1% p.a. on the pre-paid amount, for the residual period.

Rate of Interest For Term loans, 8.50% p.a. with monthly rests and for Cash Credit, 11.75% p.a. with monthly rests.

Security Primary: Hypothecation of vehicles financed as well as book debts.Collateral : i) At least 50% of the loan amount ii) Personal guarantee of promoters and two third-party guarantors.

Insurance As per Banks guidelines.

Applicability Metro/urban/semi-urban centers

Bill Finance 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 CreditThe 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.

Bank GauranteesThe SBI guarantees the creditworthiness or the business capacity of its clients through its financial and performance guarantees.

SPECIALIZED PRODUCTS

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 120 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.

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.

Channel FinancingChannel 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 9,000 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.