Purpose
·         To Finance the Direct Vendors of Corporate
Operationalization of the scheme
·         This scheme will be operated by executing a Memorandum of Understanding (MoU) between the Corporate,and the Bank.
Mode of Finance
·         Finance available only to those vendors identified by Corporate& acceptable to the Bank.
Nature of Facilities
·         Vendor Finance
 
Limit per Vendor
·         Minimum
·         Rs. 0.10 Crores
·         Maximum
·         Rs. 20.00 Crores
Assessment of Vendor
·         As per Bank norms
Primary Security
·         Invoice/Bills accepted by the Corporate
Documents to be
obtained from Principal
  1. Yearly audited financials
  2. Expression of interest
  3. Periodical list of vendors along with their names & addresses to whom bank should finance
Preliminary Documents
to be obtained from
Vendors
  1. All necessary KYC documents
  2. Copy of Purchase Order/ Contract/ Agreement between the Principal and Vendor for supply of goods, if any.
  3. Past 2 years balance sheet & profit or loss account (one year projection, if required)
  4. Past 12 months bank account statement.
  5. Estimated balance sheet & profit or loss account for the current year.
Rate of Interest (Based on rating)
  • 3 Month MCLR+ Spread
  • Spread may vary from 0.50% to 2.00% based on the internal rating of the vendor
Processing Charges
·         0.10% for each Vendor, No processing charges for Corporate.
Software Support
·         Dedicated software support with user interface provided to Corporate & Vendor
Selection of Vendor
·         Exclusive decision of the Bank.
Repayment of Loan
·         Bullet repayment/ Part payment as per cash flow of the borrower can be allowed subject to settling of all dues in each bill within the stipulated period.