TRADE and SERVICES SECTOR

Transport Plus

Purpose

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).

Eligibility

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.

Repayment

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.

EMI Calculator
Margin

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.

Prepayment

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

Rate of Interest

As per Card Rates.

Security

Primary :Hypothecation of vehicles financed as well as book debts.

Collateral :

  • Unencumbered vehicles/immovable properties for a value not less than 25% of loan amount.

  • 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 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.

Bank Gaurantees

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