Updated on: December 17th, 2019 3:39 PM

IDBI Sulabh Vyapar Loan

The IDBI Sulabh Vyapar loan product aims to make available to the needs of Traders acting as a very important link between the manufacturers of goods / commodities and the relevant consumers. The product aims to provide trouble free finance to traders and wholesalers as well as retailers to meet their business as well as financial needs at competitive rates of interest. The product targets individuals or firm (partnership or proprietorship) occupied primarily in buying and selling of goods is qualified for this scheme therefore offering solution to all the financial requirements of the wholesalers or traders or retailers under the Scheme.

Eligible Applicants

•           Wholesale traders
•           Retail traders
•          Dealers
•          Distributors

Loan Facility

• Offering of a term loan with limit to fund business needs (not including loans for speculative purposes). A term loan is in the form of a monetary loan that is liable for repayment in regular payments over a set time period. Term loans usually range between those offered for one and a period of ten years however may be offered for a period in excess of thirty years as the case may be. A term loan is offered at unfixed interest rate causing a supplementary balance that is repaid.
• Providing Cash Credit/ Overdraft
• Issuing Bank Guarantee. A Bank guarantee is a pledge from a bank that the debtor liabilities will be repaid in the event of failure to fulfil relevant contractual obligations.
• Providing a Letter of Credit that is issued by a bank to a different bank (particularly one in a different country) to serve as a guarantee for payments that is made to a specified person under certain precise conditions.
• Offering of bill discounting which is the process of permitting a way for businesses to borrow money based on amounts due from customers.

Loan Amount & Interest

The loan amount is a maximum of Rs. 5 crores. The interest on the loan is reflected by the interest rate linked to base rate of the bank and credit rating of the borrower. Base rate is the minimal rate determined by the Reserve Bank of India and below this banks are not permitted to issue customer loans. A bank loan rating conveys the degree of risk with reference to timely payment of the bank facility under consideration of being rated.

Loan Security

The primary security is the hypothecation of stocks, receivables or assets as the case may be financed by that bank. Collateral security imparts information of immovable/liquid security on the basis of loan nature. Collateral is defined as a property or any other asset that a borrower offers to a lender of credit to securitize a loan. In this case the collateral is the Mortgage of Residential or Commercial property up to 90% of its value. Loan Margin

• The loan margin is set at 25% on stock and book debts.
• The loan margin is set at 25% for term loan in the category of new assets.