E Vendor Finance Scheme

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E Vendor Finance Scheme

Objective/ Purpose

Financing receivables of recommended vendors of reputed Corporates/ Industry Majors (IMs). Web based solution for Invoice Discounting with minimal branch intervention and provides instant credit to vendors account electronically.

Eligibility

  • Existing borrowers of Bank with continuously making profit for last 3 years
  • Minimum Turnover Size for IM: Rs. 300 Cr and above
  • External rating
    For Existing Borrower/Customer
    1. ECR: Minimum BBB (Provided ECR is Continuously BBB/BBB+ for past 3 years)
    2. Internal rating: Minimum SB7
    For Non-Borrower/Customer
    1.ECR: Minimum AA
  • IMs total vendor base at least 25
  • Outstanding Sundry Creditors not to exceed three months purchase.

Features

  • Type of Facility : Cash Credit (Clean)
  • Target Group: Vendors of reputed Industry Majors/ Corporates with whom the Bank has tie-up arrangement.
  • Quantum of loan (Min/Max) : Need Based
  • Margin (%) : Nil
  • Pricing : Competitive Pricing Linked to EBR(Repo rate+2.65%)/T- Bill (Depends on ECR)
  • Collateral Security : Nil
  • Repayment Period : According to tenor of the receivables (Max 180 days)
  • Processing Fee/Upfront Fee : Rs. 10,000 to Rs. 30,000/- (Depending upon the quantum of finance)

Terms and Conditions 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.
  • 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.
  • Industry Scenario to be considered / RMD guidelines will be referred.

Last Updated On : Thursday, 08-02-2024

Interest Rates

8.00%* p.a. onwards

w.e.f. 15.04.2025

*T&C Apply.

 

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