Short Term Financing:
- Short-term loans offer individuals and/or businesses borrowing options to meet its financial obligations scheduled to be repaid in a period less than a year.
- It is a short term fund-based facility provided to capital deficit businesses for a short term period, i.e. for a year or less. This facility is usually for businesses to run their day-to-day operations including payment of wages to employees, raw material/ inventory procurement and supplies.
- It is a short term, fund-based facility where an amount is disbursed against pledge of locally procured goods, merchandise, stocks. The amount after retaining the prescribed percentage of margin on stocks is transferred in a separate C/F account of the customer. Delivery of pledged stocks is allowed against payment(s) by the borrower.
Running Finance against pledge of shares:
- It is a short term, fund-based facility where an amount is disbursed against shares of listed companies held under pledge as collateral. This enables the borrower to avail financing to cater to his business needs.
- It is a short term, fund-based facility where an amount is disbursed in bullet payment to cater to his business needs scheduled to be repaid in a period less than a year in lump sum or installments.
Medium /Long Term Financing:
- Long-term loans offers, businesses borrowing options to meet financial obligations for capital expenditure, project financing, consortium lending, structured finance etc scheduled to be repaid in more than a year but not exceeding seven years preferably.
- This facility can range from medium to long term. It is a fund based facility allowed to commercial enterprises, corporations, industrial groups or joint ventures for financing their capital expenditures or fixed assets like purchase of plant & equipment or machinery, construction of site premises, installation of machinery and fixtures, etc for expansion of production facilities or BMR.