#1
July 21st, 2016, 04:57 PM
| |||
| |||
Union Bank of India Cash Credit Facility
Hi I would like to have the details of the working capital need of a business which is offered by the Union Bank of India?
|
#2
July 21st, 2016, 05:02 PM
| |||
| |||
Re: Union Bank of India Cash Credit Facility
Cash credit is a cash advance given to an organization. The bank gives the subsidizing simply after they get the obliged security to secure the credit. At the point when the security has been given, the organization can constantly draw cash from the bank to as far as possible set by the bank. Union Bank helps you in meeting the assets required for everyday operations of your business either by direct financing or by method for issuance of Letter of Credit. We subsidize the pre deals and additionally post deals working capital prerequisite. Pre Sales Working Capital Financing your crude material, completed merchandise and book obligations/receivables as Cash Credit (Hypothecation) limit Post Sales Working Capital Financing of Bills drawn on your clients by method for Inland/Foreign Bills Purchase/Discount Limits The accompanying table mirrors the speculation roofs for characterizing Micro, Small and Medium Sector Enterprises : Characterization Fabricating Sector(Investment in P and M) Administration Sector(Investment in Equipments) Miniaturized scale Enterprise Upto Rs 25.00 Lacs Upto Rs 10.00 Lacs Little Enterprise More than Rs 25.00 Lacs upto Rs 5.00 Crores. More than Rs 10.00 Lacs upto Rs 2.00 Crores Medium Enterprise More than Rs 5.00 Crores upto Rs 10.00 Crores More than Rs 2.00 Crores upto Rs 5.00 Crores Margin / Collateral Requirements Margin Requirements Promoter’s contribution (margin) is basically a commitment of the promoter towards the project. The margin amount may differ from borrower to borrower as well as on the basis of asset class to be financed. Hence after taking into consideration the bankability of the project, the bank may stipulate suitable margin requirement. Collateral Requirements: Credit assistance to MSEs upto Rs.10 lakhs is extended without any collateral securities Collateral free financial assistance above Rs.10 lakhs and upto Rs.100.00 lakhs is extended to Micro & Small Enterprises as per operational guidelines All the eligible collateral free loans extended to Micro & Small Enterprises borrowers are covered under Credit Guarantee Scheme of Credit guarantee Fund Trust for Micro & Small Enterprises (CGTMSE) For financial assistance above Rs.100 lakhs to Micro & Small Enterprises, collateral security requirement is decided on case to case basis on individual merits considering various factors including risks related to the activity after conducting due diligence about the promoters In other cases the quantum of collateral coverage is decided based on the activity and risk involved with the activity / promoters However quantum of collateral is not a hurdle while extending financial assistance to MSMEs in general |