Corporate Loan

They are as follows:

• Term Corporate Loans :
  

  You can use the available funding from the corporate term loan for anything you want. Either for infusing working capital, purchasing-renovating machinery or property, buying equipment, or upgrading technology. Interest rates can either be fixed or floating. However, it is a fixed loan repayment term. It is three years for a secured corporate loan and up to 15 years for its unsecured variant.

• Corporate Loan against securities:
  

  This loan is for those investing in financial securities like mutual funds, insurance, bonds, and exchange-traded funds or fixed maturity plans. All you need to do is to pledge your security. The loan repayment term gets renewed every year.

• Overdraft facilities:
  

  These facilities allow business owners to debit their accounts below 0. Every bank will have a pre-determined limit of the available amount. It varies depending on the type of security you have pledged. You pay interest only on the amount used. But the bank holds the right to repay your loan on short notice.

• Cash credit facility:
  

  It is a type of corporate loan where you receive money for your business assets like inventory or receivables. The amount allowed to withdraw is up to 70% of the value of the asset submitted. And the repayment term gets renew every 12 months.

• Letter of credit facility:
  

  Here, the bank gives a letter of recommendation to the lender in question. It attests to the evaluation that you will pay on time. If you fail, the bank will repay your loan provided you fulfill their conditions.

• Channel financing:
  

  Channel financing is perhaps the latest entry among the types of corporate loans in India. Here, you get a chance to strengthen your network of distributors. The loan ensures that your distributors get the funding required to buy equipment and other items. The design of the repayment schedule is as per the needs of the borrower.

• Working capital GST corporate loan:
  

  This loan gives you instant access to funding when in need of quick cash. The amazing thing about the GST loan is that it eliminates paperwork. The fund available is determined based on your GST return.

The features and benefits of Corporate Loan can be summed up as follows:

• Provision of emergency funds:
  

  A corporate loan is one of the best ways to get finance for the expansion of your business. You can use the loan for various purposes related to your business and help it reach new heights.

• Dropline Overdraft facility:
  

  There are certain lenders who offer the option of Dropline Overdraft. Through this facility, a current account is opened separately in which the loan amount is deposited. In this way, the borrower will be required to pay interest only on the amount that he or she utilizes.

• Flexible tenures:
  

  Most lenders offer a flexible tenure for the repayment of the loan which usually ranges between 12 months and 48 months. Some lenders even provide loans for the tenure of 60 months. This allows the borrower to grow his or her business with ease.

The SBI corporate term loans can support your company in funding ongoing business expansion, repaying high-cost debt, technology up-gradation, R&D expenditure, leveraging specific cash streams that accrue into your company, implementing early retirement schemes, and supplementing working capital.

Corporate term loans can be structured under the FCNR (B) scheme as well, with the option of switching the currency denomination at the end of interest periods. This will help you take advantage of global interest rate trends vis-a-vis domestic rates to minimize your debt cost.

The bank’s corporate term loans are generally available for tenors from three to five years, synchronized with your specific needs.

SBI corporate term loans may carry fixed or floating rates, as befits the exact requirement of the client and the risk context. Again, these rates will be linked to the bank’s prime lending rate.

• Interest: 15.65% to 21.20%
• Processing fee: Starts at 0.99%
• Max. Loan Amount: Up to 40 lakhs (Up to 50 lakhs in selected locations)
• Benefits of HDFC Bank corporate loan:
  • Fast sanction of loans
  • Completely transparent process
  • Security is not required
  • Competitive pricing
  • Dropline Overdraft facility of up to Rs.5 lakh to Rs.15 lakh

• Max. Loan amount: Up to 30 lakhs
• Benefits of Bajaj Finserv corporate loan:
  • Collateral is not required
  • Special pre-approved offers
  • Flexi Loan facility
  • Hassle-free process
  • Minimal documentation

• Max. Loan amount: Up to 1 crore
• Benefits of ICICI Bank corporate loan:
  • No requirement for collateral
  • Minimal documentation
  • Competitive interest rates

• Max loan amount: up 20 crores
• Processing fee: From 1.25% to 2.00% (plus applicable GST)
• Benefits of DHFL corporate loan:
  • Loan term of up to 5 years
  • The application fee ranges from nil to Rs.10,000
  • Highly competitive interest rates

• Max loan amount: Up to 50 lakhs
• Rate of Interest: 18% to 25%
• Processing fee: Up to 3% of the loan amount
• Benefits of IIFL corporate loan:
  • Flexible options for repayment of a loan
  • Collateral is not required
  • Minimal documentation and quick approval of a loan
  • Loan repayment tenure of up to 12 to 48 months

Corporates trading in international markets requires foreign currency funding for meeting their exports & imports fund obligations. Facilities are available for meeting pre-sales and post-sales requirements both in domestic as well as foreign currency.

• Packing Credit advance in domestic as well as foreign currency
• Running packing credit facility also available
• Foreign Letters of Credit for the procurement of raw materials/goods
• Purchase/Discounting of Foreign Bills under LC or confirmed order
• Negotiation of Bills under LC
• Finance under the Gold Card Scheme to the exporters on better terms of credit including the rate of interest