Purpose
Financing receivables of recommended vendors of reputed Corporates/ Industry Majors (IMs). Completely web based solution with minimal branch intervention and provides instant credit to vendors account electronically.
Features
Type of Facility : Cash Credit (Clean)
Target Group : Vendors of reputed Industry Majors/ Corporates with whom the Bank has tie-up arrangement
Quantum of loan (Min/Max) : Need Based
Margin (%) : Nil
Pricing : Competitive Pricing Linked to MCLR
Collateral Security : Nil
Repayment Period : According to tenor of the receivables.
Processing Fee/Upfront Fee : Rs. 10,000 to Rs. 50,000/-
Eligibility Criteria
- Existing borrowers of Bank with continuously making profit for last 3 yr
- Minimum Turnover Size for IM: Rs. 500 Cr and above
- External Rating: A & above/Internal Rating SB-7 & above (If SBI customer)
- IMs total venEdor base at least 50
- Outstanding Sundry Creditors not to exceed three months purchase
- Industry Scenario to be considered / RMD guidelines will be referred
Other Conditions
- Transactions are done on Internet Banking Platform of the bank (no cheque book required) & which results in easy, convenient & hassle free banking facilities to all stake holders i.e. Bank, IM & Dealer.
- Multiple Channel Repayment Option such as Cash, Cheque, Fund Transfer, NEFT, RTGS etc.
- There are 2 variants under e-VFS:
a. Vendor Exposure: Financing will be made to the vendors against the supply of goods/services to reputed Corporates/IMs.
b. IM Exposure: Financing will be made to the reputed corporate/IMs for payment towards the supply
received from their vendors.
Credits – SBI ( State Bank of India )