Purpose
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· To Finance the Direct Vendors of Corporate
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Operationalization of the scheme
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· This scheme will be operated by executing a Memorandum of Understanding (MoU) between the Corporate,and the Bank.
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Mode of Finance
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· Finance available only to those vendors identified by Corporate& acceptable to the Bank.
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Nature of Facilities
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· Vendor Finance
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Limit per Vendor
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· Minimum
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· Rs. 0.10 Crores
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· Maximum
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· Rs. 20.00 Crores
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Assessment of Vendor
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· As per Bank norms
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Primary Security
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· Invoice/Bills accepted by the Corporate
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Documents to be
obtained from Principal
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- Yearly audited financials
- Expression of interest
- Periodical list of vendors along with their names & addresses to whom bank should finance
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Preliminary Documents
to be obtained from
Vendors
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- All necessary KYC documents
- Copy of Purchase Order/ Contract/ Agreement between the Principal and Vendor for supply of goods, if any.
- Past 2 years balance sheet & profit or loss account (one year projection, if required)
- Past 12 months bank account statement.
- Estimated balance sheet & profit or loss account for the current year.
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Rate of Interest (Based on rating)
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Processing Charges
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· 1% for each Vendor, No processing charges for Corporate.
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Software Support
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· Dedicated software support with user interface provided to Corporate & Vendor
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Selection of Vendor
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· Exclusive decision of the Bank.
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Repayment of Loan
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· 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.
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