Financial Shop

Description

MSMEs are : Manufacturer, Trader & Services are the segment who can avail working capital limits to meet the working capital shortfall having invested in stock, paid to creditors and sales receivables are delay etc..

You can also avail project finance if there any capital expenditure done or being done.

Products can avail from Banks :

• Term Loan : –
  • • Wanting to get ahead in your career by starting your own business or to expand your existing business ? Term Loan might be good option. Every business requires funds. Hence, getting a Term loan from a bank is a quick solution.
  • • A term loan is a simply a loan that is given for a fixed duration of time and must be repaid in regular installments.
  • • Term loan is a medium-term source financed primarily by banks and financial institutions. Such a type of loan is generally used for financing of expansion, diversification and modernization of projects.

  The most important advantages of term loan are,

  • At lower rates
  • Tax Benefit
  • Negotiable
  • • Generally having a tenor up to 5 to 7 years, these loans are tailor-made to suit the various financial needs of businesses. Minimal documentation, quick disbursal of funds, and flexibility in repayment are some of the major benefits of these loans.
• Cash Credit – OD Working Capital : –Cash Credit (CC) is a source of short term finance for businesses and companies. Cash credits are also called working capital loans as they fund the instant cash requirements of the organizations, or to purchase current assets.Get Upto 5 Crore Collateral Free CGTMSE Cash Credit / Term Loan. Avail Loan From Top Banks & NBFC. Minimum Documentation. Quick Disbursal. Easy Repayment. Apply Now.
• Import Export Finance : –Packing credit is a pre shipment finance given to exporters with a law interest rate to boost exports. Packing credit is given by authorized bank by the instruction of Reserve Bank as a government policy to promote exporters to earn foreign currency to strengthen financial status of a country.As quoted by RBI about packing credit – “No Export Order should suffer for want of finance”. This says all about the purpose of Packing Credit finance to Exporters.The basic purpose of Packing Credit Finance is to enable the exporter to procure process, manufacture or store the goods for export. Packing credit refers to the credit granted by bank to an exporter to enable him to pack the goods. This is short-term working capital advance.
• Non Fund Base Limits : –

  Non-fund based credit facilities are those where at the time of sanction which do not involve such outflow of the bank’s funds. Typical examples of non-fund based facilities are letters of credit, bank guarantees, letter of comfort, etc.

  So, in the simple terms non funded facility are the funds provided are not in real cash, but the Bank commits to the third party to pay their amount if the client fails to do so. Non-Funded Facilities are,

  Letter of credit

  • A letter of credit is a letter from a bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase.
  • Due to the nature of international dealings, including factors such as distance, differing laws in each country, and difficulty in knowing each party personally, the use of letters of credit has become a very important aspect of international trade.

  Bank Guarantee

  • A bank guarantee is when a lending institution promises to cover a loss if a borrower defaults on a loan. The guarantee lets a company buy what it otherwise could not, helping business growth and promoting entrepreneurial activity.

   

• Equipment Loans : –Whether it is agriculture, construction, manufacturing, transport or medicine machineries play a very important role in business. When your business productivity rests on the efficiency and speed of machines, ensuring that you buy the latest equipment is key.A machinery loan equips you with needed funds to purchase or lease machinery. To ensure consistent productivity that contributes to better sales and growth firm requires the right machinery. You may need technologically advanced machines to reduce manpower, or require machinery simply by virtue of the industry you are in.If your working capital is insufficient to fund your machinery purchase or lease, you can opt for a convenient business loan customized for machinery. This loan is available at nominal interest rate and doesn’t require any collateral.