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  1. What is the basis for fixing the pricing of credit facilities?
    The pricing of the credit facilities will be based on the credit rating of the borrower carried out by our bank.

  2. How the credit rating is decided? What are the key features?
    There are various parameters that will be considered while rating a borrower. The rating model consists of various parameters like Rating of the Borrower (financial, cash flow, management, market risk parameters), Rating of the facility and Business aspects. Based on the performance of the company, marks will be allotted against each parameter and the rating will be decided.

  3. In case of newly incorporated companies where the audited balance sheet is not available, how the rating on financial parameters will be done?
    In case of newly incorporated companies without having past audited balance sheets, the rating will be done based on other parameters and the score will be worked out in terms of %

  4. What are the basic documents required to process loan application?
    The basic documents required to process the loan application for working capital limits are:
    • Audited Balance Sheets for the previous three years along with the audit reports.
    • CMA data for the next two years
    • Sales Tax/ IT returns
    • Credit Information on the company and its Directors
    For Term Loans
    • Project Report
    • TEV report
    • Various clearances/approvals required & obtained for the project
    • Profitability projections and the assumptions for the same

  5. Does your Bank extend the corporate loans or Line of Credit for short term working capital requirements?
    Yes. In case of good rated companies with good financials, we consider corporate loans or Line of credit for short term working capital requirements.

  6. What will be the security required for that?
    Any tangible security to the extent of 100% of the advance is required.

  7. What are the commitment charges? How & when they are calculated & charged?
    Commitment charges are the charges which will be levied on unavailed/partly availed credit facilities. In case the working capital limits are unutilized in excess of 25% of the sanctioned limits, commitment charges will levied. Commitment charges on term loans are applicable to the undrawn portion of the term loan i.e. difference of actual drawals and as mentioned in the draw down schedule. Commitment @ 0.50% p.a. shall be recovered on half yearly basis in September and March every year.

  8. Whether our company is eligible for availing finance under �Channel Finance�?
    The Channel Finance facility is available to the corporates who are identified by our Central Office. Corporates who are interested in availing these facilities are required to contact our Central Office.