Asset Backed Loan – Commercial Real Estate

Asset Backed Loan – Commercial Real Estate

Features

Nature of Facility : Dropline Overdraft. Both FB & NFB Facility (LTV- Immovable property : 50% of the
realizable value)

Purpose:

Creation/acquisition of real estate such as office buildings, retail space, industrial or warehouse
space, multiplex, hotels, restaurants, gymnasium, amusement parks, cold storage etc. where the
prospect for repayment would generally be lease or rental payment or sale of asset.
For both working capital (including pre-operative expenses) and fixed asset.

Target Group : Proprietorship/Partnership/Company

Quantum of loan (Min/Max) : Minimum loan amount: > Rs 10 lacs
Maximum loan amount
Tier-II, III Branch: Rs 20 Crores
Tier-I Branch: Rs 50 Crores
Margin (%) : 25% both for working capital and fixed assets.
Pricing : Competitive Interest Rate Linked to MCLRRepayment Period Drop-line Overdraft: Limits can be sanctioned for period of 12 months to 72 months,
including moratorium period, with either Equated Reduction in limit or customized reduction in limit
depending upon the cash accruals as per projections.
Interest to be serviced monthly during the period of moratorium also.
Drawing power shall be reduced so as to have the overdraft liquidated at the end of the period.
Processing Fee/Upfront Fee : 1% of the limits (Upper Cap: Rs.10 Lacs)

Eligibility Criteria

Existing Customer already availing credit facilities from us.
New units with marketable assets to offer as security
Takeover of existing units from other Bank/FIs permitted with satisfactory track record (Credit information
report to be obtained).

Collateral Security

Immovable property in the form of Equitable/ Registered Mortgage of land and building, by way of first charge.
Industrial property both leased & freehold / land/plot cannot be taken as security for ABLCRE-CP
Leasehold property can be taken subject to the conditions mentioned above under the head “Eligible
Security”.
No Second Charge or Pari-Passu charge will be extended for other
Bank/FI.
Other Conditions
Cash Flow statement for Builder Finance on Quarterly basis in the month May/Aug/Nov/Feb.
Drawing power is not linked to quarterly cash flow statement. However, cash flow statement is must to
confirm the level of activity/status of the project/end use of the funds

Credits – SBI ( State Bank of India )