ELECTRONIC VENDOR FINANCE SCHEME (E-VFS)

FINANCING RECEIVABLES OF VENDORS OF REPUTED CORPORATES/INDUSTRY MAJORS

Parameters Features
Nature of Facility Cash Credit (Clean)
Purpose Financing receivables of recommended vendors of reputed Corporates/ Industry Majors (IMs). Completely web based solution with minimal branch intervention and provides instant credit to vendors account electronically
Target Group Vendors of reputed Industry Majors/ Corporates with whom the Bank has tie-up arrangement
Eligibility Criteria
  • Existing borrowers of Bank with continuously making profit for last 3 yr
  • Minimum Turnover Size for IM: Rs. 500 Cr and above
  • External Rating: A & above/Internal Rating SB-7 & above (If SBI customer)
  • IMs total vendor base at least 50
  • Outstanding Sundry Creditors not to exceed three months purchase
  • Industry Scenario to be considered / RMD guidelines will be referred
Quantum of loan (Min/Max) Need Based
Margin (%) Nil.
Pricing Competitive Pricing Linked to MCLR
Collateral Security Nil
Repayment Period According to tenor of the receivables.
Processing Fee/Upfront Fee Rs. 10,000 to Rs. 50,000/-
Other Conditions
  • Transactions are done on Internet Banking Platform of the bank (no cheque book required) & which results in easy, convenient & hassle free banking facilities to all stake holders i.e. Bank, IM & Dealer.
  • Multiple Channel Repayment Option such as Cash, Cheque, Fund Transfer, NEFT, RTGS etc.
  • There are 2 variants under e-VFS:

Vendor Exposure: Financing will be made to the vendors against the supply of goods/services to reputed Corporates/IMs.
IM Exposure: Financing will be made to the reputed corporate/IMs for payment towards the supply received from their vendors.