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Q. For whom are the Trade and Working Capital products useful?
The target segment includes manufacturers, retail / wholesale traders, importers / exporters and service providers.
Q. Which entities are eligible for loans under Trade and Working Capital product?
- Self Employed individuals and professionals
- Sole Proprietors / Proprietorship firms
- Partnership Firms
- Pvt. Ltd. Companies (including closely held limited companies)
- Listed public limited companies with promoter holding greater than or equal to 51% holding are within target segment
Q. What are the types of facilities offered under Trade and Working Capital?
Depending on the needs of the customers, facilities range from:
- Overdraft / Revolving Credit
- Export services like Pre Shipment , Post Shipment limits etc
- Import Services like Letters of Credit, Shipping Guarantees, Invoice Financing etc
- Bank Guarantees
- Term Loans for purchase of commercial property, business expansion etc
Q. What is the minimum and maximum turnover range tbe eligible under TWC?
The turnover requirement for TWC ranges from Rs. 1 crore to Rs. 110 crores.
Q. What do I need to give as security?
Security in any of the following forms is acceptable:
- Fixed Deposit
- Residential / Commercial Property
- Bank Guarantee / Standby Letter of Credit
- Industrial property subject to certain conditions
Specific details would be provided by the sales officer.
Q. What is the minimum amount of security that needs tbe given as collateral?
The minimum amount is Rs. 30 lakhs and maximum amount is Rs. 22 crores subject to conditions that will be explained by the sales officer.
Q. What are the minimum documents I need to submit for sanction?
- Audited financials of previous three years
- Bank statements of last six months
- Net-worth statements and tax returns of the borrowers / promoters and guarantors
- Identity and Address Proof
- VAT / Sales tax returns
Specific details would be provided by the sales officer.
Q. What is the rate of Interest that would be charged on Overdraft?
The rate of interest charged would vary from case to case based on the strength of financials, facilities offered, tenor etc.
Specific details would be provided by the sales officers.
Q. What is the maximum loan amount offered?
The maximum loan amount can be extend upto Rs. 22 crores.
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Note: The FAQs has been prepared for general information only and are subject to change. The ultimate aim of the FAQs is to extend the availability of the information about the product in simple and readable manner and should not be construed as a comprehensive feature of the product.
