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Purpose
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To Finance the Direct Dealers 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 Principal/Corporate,and the Bank.
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Mode of Finance
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Finance available only to those dealers identified by corporate & acceptable to the Bank.
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Nature of Facilities
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Dealer Finance
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Limit per Dealer
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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 Dealer
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· As per Bank norms
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Primary Security
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Hypothecation of Stock/ Goods procured out of bank finance.
(In case of dealer having Multiple Banking Arrangements, Pari-Passu charge to be created to the extent of Bank's finance. Specific charge also may be considered if the goods financed by the Bank can be separately identifiable from the dealer's common inventory and free from any common charge)
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Documents to be
obtained from Principal
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- Expression of interest.
- Yearly audited financials.
- Periodical list of dealers along with their names & addresses to whom the bank may finance.
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Preliminary Documents
to be obtained from
Dealers
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- All necessary KYC documents.
- Copy of Dealership License issued by the company.
- Past 2 years Balance Sheet and Profit & Loss Account (previous year provisional, if audit is not completed)
- Past 12 months bank account statement.
- Estimated Balance Sheet and Profit & Loss account for the current year&ensuing year.
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Rate of Interest (Based on rating)
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Processing Charges
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· 1% for each Dealer, No processing charge for Corporate.
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Software Support
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· Dedicated software support with user interface provided to Corporate & Dealer
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Selection of Dealer
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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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