SME Loan's
Working Capital Loan
SME working capital loans can be availed for the everyday working capital requirements of the business. As an SME loan consultant, we provide this loan in the form of cash credit/overdraft for a period of 12 months. It is generally secured against fixed assets and current assets of the company.
Machinery Loans
This facility can be availed to purchase machinery loans. This loan starts from 5.5%, and a loan of up to 75% of machinery value is provided for the maximum tenure of 5 years.
Project Funding
If you are planning a new project, you can avail this loan. Funding is provided up to 75% of the project cost.
Loans Covered Under CGTSME Scheme for SMEs
This is a collateral-free facility under which cash credit/term loan can be availed up to 1 crore. Cash credit starts from 8-8.5% under the CGTSME Scheme. This facility is designed under the Credit Guarantee Fund Trust for Micro and Small Enterprises (MSE) (CGTMSE) scheme of SIDBI and Ministry of Small and Medium Enterprises as defined under MSMED Act, 2006.
Letter of Credit (LC)
A bank avails letter of credit limit to assure the seller of their payment. It is generally used as a guarantee/assurance to sellers against the supply of raw material or any equipment/machine. It is a necessary facility for importing raw material or machines where sellers require proof of their payment. It is a non-fund-based limit issued, and the bank charges an annual commission of up to 1% for this facility. Letter of credit is generally of two types: Letter Of Credit Of Sight, Usance Letter of Credit/Deferred payment letter of credit
Bank Guarantee
Bank Guarantee is a promise offered by a lending institution/bank. The bank guarantee means if the debtor fails to settle a debt or pay it back, the Types of Bank Guarantees: bank will cover it. It is a non-fund-based limit issued, and the bank charges an annual commission of up to 1% for this facility.
Financial Bank Guarantees
Bank Guarantee is a promise offered by a lending institution/bank. Bank Guarantee is a promise offered by a lending institution/bank. The bank guarantee means if the debtor fails to settle a debt or pay it back, the Types of Bank Guarantees: bank will cover it. It is a non-fund-based limit issued, and the bank charges an annual commission of up to 1% for this facility.
Performance Guarantees
These guarantees are given in respect of the performance of an obligation. In the event of default on performance, the bank will reimburse the loss incurred by the beneficiary.
Deferred Payment Guarantees
These guarantees are given in respect of the debtor’s deferred payment to be made. In the event of default on payment by the debtor, the bank needs to pay the amount to the creditor.
Buyers Credit
Buyers Credit is a short-term facility offered to importers from banks to acquire the raw material or goods they import. It helps importers gain access to cheaper funds linked to the LIBOR rate compared to local rates related to base rates and are generally highe
Suppliers Credit
An importer avails this facility to get cheaper funds linked to the LIBOR rate than local rates linked to base rates. It is provided to the importer by the foreign bank of the seller’s country. Local bank issues usance bill under LC for importer and in return foreign bank discounts this LC for the seller.
Export Credit
Exporters can avail this facility to avail financial at a much cheaper rate linked to LIBOR rate than local rates linked to base rates. Types of Export Credit:
Bill Discounting
This facility is availed to generate liquidity for the company against the security of bills received from customers. The bank deducts the interest on the bill and releases the balance; hence it is called bill discounting.
Machinery Loans
This facility can be availed to purchase machinery loans. This loan starts from 5.5%, and a loan of up to 75% of machinery value is provided for the maximum tenure of 5 years.
