Q. How is working capital finance typically structured at SBI?
At SBI, working capital loans are tailored to suit the precise requirements of the client, in any of the various instruments available or structured as a combination of cash credit, demand loan, bill financing and non-funded facilities.
The banks accomplished credit crew can gauge the credit needs of each client and frame the exact solutions.
Q. How does SBI approve working capital loans?
SBIs dedicated credit team has a deep understanding of the intricacies of various industries and is richly experienced in reckoning the business potential of companies.
These informed professionals can assess your specific credit requirements and tailor customized financial solutions to suit your risk profile and the working capital cycle of your company.
Q. What are the tenors for which SBI extends working capital finance?
Normally working capital finance is extended as a limit for various facilities for tenors up to one year. Ad hoc requirements are also considered. How are SBI working capital loans priced?
The loans normally carry on a floating interest rate linked to SBAR, the SBI prime lending rate for working capital finance. Certain self-liquidating short-term loans are also linked to the banks Short Term Advance Rate (SBSTAR).
Q. What is the repayment schedule like?
Working capital finance limits are normally valid for one year and repayable on demand. Specific, self-liquidating loans are linked to the natural tenor of the transaction (bill finance, export credit etc.).