Our Corporate Credit Services Unit is committed towards meeting financial requirements and providing financials solutions to high valued corporate customers.
The financing requirement may be fulfilled solely by the Bank or through consortium arrangement. Over the years, our Corporate Credit Services unit has been successful towards building and maintaining diversified credit portfolios in various lending sectors such as agriculture, manufacturing, energy, construction, transport, information technology, trading, tourism, etc.
Project finance is the financing of long-term infrastructure, industrial projects and public services based upon a non-recourse or limited recourse financial structure, in which project debt and equity used to finance the project are paid back from the cash flow generated by the project. Project financing is a loan structure that relies primarily on the project's cash flow for repayment, with the project's assets, rights and interests held as secondary security or collateral.
Trade finance relates to the process of financing certain activities related to commerce and international trade. Trade finance includes activities such as lending, issuing letters of credit, factoring, export credit and insurance. Companies involved with trade finance include importers and exporters, banks and financiers, insurers and export credit agencies, and other service providers.
Term loan facilities are granted to businesses for financing asset creation mainly of fixed nature. Drawings are normally made in lump sum or in multiple tranches based on nature of transaction(s), remaining within approved limit. Term Loan is generally provided with a maturity of more than 1 year. Term loan is retired over the loan tenor on equal installment basis or ballooning installments designed based on cash flow generation of the businesses. Term loans are usually secured loans with primary security being the assets purchased utilizing the Term Loan amount and the bank may seek additional security to safeguard the exposure.
Working capital finance is a loan that has the purpose of financing day-to-day operations of a company. This loan is usually financed against net current assets of the company and is used to manage cash flow gap of the businesses. However working capital loans should not be utilized as long term funding option for buying long term assets or for investment purpose. Companies that have cyclical or seasonality sales usually rely on working capital loans to help with periods of reduced business activity.
In Syndicated Loan Arrangement /Consortium Lending, several banks or financial institutions form a syndication to finance a single borrower with a common objective, appraisal and documentation including joint supervision and follow-up exercises. Consortium is guided by a common agreement in the context of financing participation, pricing terms, fund utilization and monitoring, repayment modality, securities to be obtained, etc. The borrower company gives a mandate to a bank to lead the consortium which is commonly referred to as the Lead Bank responsible for managing the functioning of the consortium. Pari-passu (Proportionate) charge will be created on securities offered by the borrower company against the total credit extended by all the lending banks of the consortium.
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