Trade And Services Sector - Business

Trade And Services Sector

Transport Plus

• Type of Facility
  • Term Loan
  • Cash Credit limit to finance receivables.
• 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. EMI Calculator
• Margin for Term Loan and C.C : 20%
• 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.
• Insurance As per Banks guidelines.
• Applicability Metro/urban/semi-urban centers

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.

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.

State Bank of India advises issuance of Inland Bank Guarantee (BG) to the Beneficiary’s bank through a secured platform viz. Structured Financial Messaging System (SFMS). In order to facilitate the secured transmission of BG advise, Bank requires the applicants to provide IFSC code of the Beneficiary’s bank on the BG application form, for advising issue of BG to the Beneficiary’s bank through Structured Financial Messaging System (SFMS).The Beneficiaries of BG may also verify the genuineness of the BG from their Bank, based on the advice received from BG issuing Bank i.e. SBI through SFMS.