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Cluster Financing
SBI is a pioneer and the market leader in Cluster Financing Widest coverage with presence in almost all the clusters Customised products for meeting the varying needs of customers Has financed lakhs of SME units including first generation entrepreneurs
Advantages - SBI
No Collateral Security required for loans below Rs.5 lacs Understands the needs of the units better Wide range of products Competitive rates of interest Coming up with simplified Credit Scoring Models for each industry Helps strengthen Supply Chain Linkages by catering to the needs of all the players Availability of an experienced Technical Team
Needs Addressed
Fund Based Needs: Term Loans Working Capital Needs Bill Purchase Export Credit (Packing Credit/Post shipment Credit) in rupees and foreign exchange Non-fund Based Needs: Letter of Credit Bank Guarantee
Customised Products
Open Term Loan Mortgage Loan for Traders Car Loan for SME Units Rice Mill Plus Dal Mill Plus
UPTECH package
To facilitate funding of upgradation projects Concessions Given: Reduced Margins Low interest rates Interest free Equity fund assistance: Upto one lakh Need based WC requirements Assistance in implementation of technical aspects
Consultancy Cell
Provides Counselling support to first time entrepreneurs Techno-economic feasibility Industrial dossiers and database Conduct industrial management programs for entrepreneurs Entrepreneurship Development Programme
Recent Initiatives
Intensifying Cluster Financing efforts in five major industries
Bellary Jeans Cluster identified for Project Uptech by SBI Taken up initiatives to finance Apparel and Weaving parks
Bridge loans given to Implementation Agency for creating infrastructure facilities for the park Loans under Group workshed scheme for setting up units Loans under TUFS for acquiring machinery
Collaterals offered
SME Characteristics
SMEs: Very attractive segment for banks
Quick and timely availability of credit Understanding of business needs Physical proximity reliability service
Eligibility
1. Existing customers. 2. New connections including takeovers. 3. First generation entrepreneurs as well as promoters of existing units for the purpose of setting up new unit.
The following categories of borrowers will be covered a) Small business enterprises b) Retail traders/wholesale traders c) Professional and Self employed
Nature of facility - Term Loan/Cash Credit. Quantum of Loan - Minimum Rs.25,000/Maximum Rs.10.00
crores.
Primary: Hypothecation of stocks and receivables. Collateral: Mortgage of land & building of realizable value of 133% of loan amount
Purpose
To provide term loan to the SME units with pre-approved limits for multiple needs of the organization throughout the year
Needs Addressed
Zero sanctioning time Covers all business needs Convenience of closing deals with suppliers instantaneously, with pre-approved limits Liberty to decide when and how much finance required
Pre-sanctioned term loan limit up to a maximum of Rs. 250 lacs, valid for a period of 12 months For
Addition/replacement of machinery Building or modernizing factory Traveling abroad Buying new hardware/software, Replacing tools, jigs and fixtures Any other business related purpose
Maximum limit of Rs. 250 Lacs (This limit may be relaxed on case to case basis) Loan sanctioned valid for a period of 12 months Repayment period generally not to exceed 3 years after the end of 12 months 10% uniform margin Interest rates linked to credit appraisal Simplified documentation Based on financial statements including FFR Forms
Purpose
Working Capital Expansion of the Outlet/Showroom Service station/Other facilities construction Takeover of existing facilities with other Banks
To provide the company quicker remittance from the dealers across the country
Needs Addressed
Dealer
<<Company>>
Organized source of finance Cheaper source of finance Quicker availability of funds Attractive terms and conditions Easy remittance
Facilitates Expansion Zero receivables Franchisee loyalty Efficient Cash Management Higher Franchisee commission No float funds
Dealers debits his cash credit account through CINB and authorize credit in Companys account Company faxes a copy of the Invoice to the Branch maintaining Dealers account After the event of sale, the dealer deposits money in his CC account
Terms of Sanction
Subject to establishment of viability Acceptable Credit rating on Credit Scoring Model Acceptable score on Risk Matrix
Same day direct credit from Dealers MIS of payments via CINB Pan India coverage for all dealers through single account
Flexible terms and conditions CINB for bypass of Branch Quicker organized finance availability Easy remittances
SBI Advantage
Most experienced financer in Trade financing Special sanctioning cells (SECC & CPC) for quicker turnaround time of sanctioning and disbursal Account Relationship Manager for entities with more than Rs.1 crore turnover Dedicated branch network
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Mo.No. :- 94279-13540