Debt Funding Primer Vipul Thaker Oct 2010 - copy


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This primer was shared by Vipul Thaker (CEO, Haribhakti) as a part of the TiE Investor Forum series on raising Debt Capital for Growth.

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Debt Funding Primer Vipul Thaker Oct 2010 - copy

  1. 1.   Prime Vario After Pr Industry for bank for fulfi Today t Foreign who are and Med Funding are liste F er on D ous Deb rivatisation y and prese ks and for c lling fundin here are d Banks, Co e funding to dium Enterp options of ed below. Fund Base 1. Work 2. Term 3. Facto 4. Speci selec 5. Expor Debt Fun t Fundi n of Nation ence of For consumer it ng requirem different ty -operative o different prise, Cotta fered by di ing Capital Loan oring al Funding ted Banks) rters Loan. nding ing Opt nalised Ban reign Banks t has given ments. ypes of ban Banks, Sch t categories age Industr ifferent typ & Overdra g Options tions Pr nks, emerg s in India, a competit nks such as hedule Ban s and secto ry, Agricult pes of Bank aft. for Smal            rovided gence of p has increa tive option s Nationalis nks, Nonban ors such as ural sector ks to differe ll Medium                 d By Ban private sec ased the ar s to choose sed Banks, nking finan s Corporate r, Individua ent categor Enterpris nks ctor in Ban reas of Fun e a right ba Private Ba nce Compa es, Micro, S ls. ries and sec e (With s nking nding anker anks, nies, Small ctors some
  2. 2.   N Brief d 1. Wo These a like the expense chains, against of main subjecte other st 6. Agric 7. Proje 8. Busin Non Fund B 1. Bank 2. Lette 3. Colle descript orking Ca re the mos e purchase es, financin funding p collaterals ntenance o ed to perio atements a ulture loan ect Finance ess Loans. Base Guarantee ers of Credi ction of Bil tion of F apital & O st popular e of raw m ng invento production . Companie of proper odical mon and also thr n. s es. ts lls on behal Fund Bas Overdraft: financing o material, p ories, mana and mark es who borr accounts nitoring th rough analy lf of Custom se Optio :- option. It is payment o aging inte keting oper row from b and regula rough a re ysis of cash            mers. ons: s meant to of wages a rnal cash- rations. Mo banks are s ar repayme eporting st h flows rout                 o meet the and other flows, sup ost banks ubjected to ents of lo tructure of ted through working n administra pporting su provide t o the discip oans. They f financial h the banks eeds ative upply these pline are and s.
  3. 3.   2. Te Term loa which m may var asset-ba instituti of cash- to study 3. Fa A financ to a thi financin Factorin business In facto generate invoice percent forward In India erm Loan: ans are ma may vary fr ry dependi acked or c ons seek a flow backe y its cash-fl ctoring cing metho rd-party fu ng, factorin ng is very c s cycle. oring, the es an invoi by agreeing . The facto s the rema some sele :- ainly funded rom three t ing upon t ash-flow b ssets of th ed loans, ba ow capabil d in which unding sour ng is the c ommon in client (yo ce. The fac g to pay yo or pays 75 p inder (less ected banks d for Capex to ten year he risk pro backed. In e company anks carefu lity. a business rce to rais cash-manag certain ind u) makes ctor (the fu ou the invoi percent to the discou s or their N x (Procure a rs. The am ofile of th the case o y as collate ully scrutini s owner sel e capital O gement to dustries, wh a sale, de unding sour ice's face v 80 percen nt) when y NBFCs offe            assets). Th mount, the he company of asset-ba erals while ize the bal lls accounts One of the ool of choi here long re elivers the rce) buys th value less a t of the fac your custom er these pro                 ese loans a tenure and y. Term lo acked term issuing loa ance sheet s receivabl oldest for ice for ma eceivables e product he right to a discount-- ce value im mer pays oducts the are term ba d interest r oans are ei m loans, le ans. In the ts of a com e at a disc rms of busi any compa are part of or service collect on -typically 2 mmediately ese days. ased, rates ither ender case pany count iness nies. f the and that to 6 y and
  4. 4.   4. Sp After in Commiss up with Medium 1) A To mee includin Nursing diagnost office requirem All enti Partners medical 150/- cr Note:-T science experie 2) V To mee construc ecial Fun ncorporatio sioner of M some spec Enterprise Arogyadha et the fina g Patholog Home/ H tic equipm furniture, ments. ities, i.e. ship firms, /pathologic rores. The Promot from a re ence Vidyastali et the fina ction of bu nding Opt on of MSM Micro, Smal cial fundin e .The brief m Loan :- ncial requi gical Labor Hospital inc ents as al Purchase MSMEs, E , Private cal diagnos ters should ecognized Loan:- ncial requi uilding, pu tions for S MED Act ll & Medium g options w f descriptio irements f ratory, Exp cluding Pa so office e of ambu Enterprises Limited C stic service d have req University irements f urchase of Small Med 2006 whic m Enterpris which suits on of the pr for setting pansion/re athological equipments ulance etc other tha Companies es to the S quisite qua y and shou for setting equipment            dium Ente ch is mon se some s s for the p roducts are up of new novation/m Laborator s, viz. com c and to an individ and Trust Society and lification i ld have m up the in t etc. for                 erprise (S nitored by elected ba purpose of e as below. w Nursing modernizati ry, Purcha mputers, ai meet w uals like ts engaged d with tur in any bran minimum 2 stitutions the new SME) y Developm anks have c Micro, Sma Home/Hos ion of exi ase of med ir condition working ca Proprietors d in provi rnover upto nch of med years of w which incl set up as ment come all & spital sting dical ners, apital ship, iding o Rs. dical work ludes also
  5. 5.   renovati training Educatio educatio 3) T In Loans un as per g nodal ag by the b To prov gradatio interest charged technolo guidelin Linked C interest technica etc. The equipme handloo ion of the to the stud onal instit on activitie Technology ndustries: nder Techn guidelines gency for d bank under vide encour on and to reimburse by the ba ogy up-gra es of the s Capital Sub reimburse al textiles m e scheme a ents for th ms and tes existing fa dents. tutions, Sc es y Upgrada - nology Up-g received f etermining the schem ragement t modernize ement (4 p nk on the adation/mo scheme wo bsidy for Sm ement plus machinery, also provide e pre-loom sting and qu cilities, pu chools, Co ation Fun gradation F from time g eligibility e. to textile e their pro percentage loans avail dernization uld also be mall Scale 10% capita , garmentin es 25% capi m and post- uality contr urchase of i lleges and nd Scheme Fund Schem to time fr and releas industrial duction fa for spinni ed by the n. New un e eligible fo Sector and al subsidy ng machine ital subsidy -loom oper rol equipme            instrument d other ed e (TUFS) me launche rom Ministr sing of subs units for t cilities. T ng industry units from nits set up or the abov d 20% for P for specifi ery and for y on purcha rations, ha ents for ha                 ts for impa ducation b For Text d by Gover ry of Texti sidy for the taking up The scheme y) of the n the bank f p with tech ve benefit, Power-loom ed process CAD, CAM, ase of new ndlooms/u ndloom pro rting educa bodies run tile And J rnment of iles. Banks cases fina technology e envisage normal inte for underta hnology as or, 15% C m Sector, or sing machin , Design Stu machinery p-gradation oduction un ation nning Jute India s are nced y up- es 5% erest aking s per redit r, 5% nery, udio, y and ns of nits
  6. 6.   4) C Credit L Technol Banks ar To faci products inductio products manufac auto pa measuri tyres; h (includin 5) C Granted Enterpri units an sector) E 6) C F To prov defined All Micr Sector - Credit Link Linked Capi ogy Upgrad re the Noda ilitate Tec s/sub-secto on of prove s including cturing); In arts and co ng; glass a and tools; ng Marble M Composite d for Fixed ises (Manuf nd Micro E Enterprise Collateral Fund Trust ide collate under MSM o and Sma as defined ked Capita ital Subsidy dation of T al Agencies chnology U ors as notif n technolog g footwear nformation omponents; and ceram bicycle pa Mining Indu Loans capital in facturing S Enterprises engaged in Free Loa t For Micr eral free lo MED Act, 20 all Enterpri d under MSM al Subsidy y Scheme l Tiny and SS s appointed Upgradation fied by Gov gies approv r and garm and Techn ; electronic ic items in arts; found ustry). nvestment Sector) inc in Small n industrial ns Under o And Sma ans upto R 006. ses - both MED Act, 20 y Scheme ( launched b SI units in t d by Govern n of Tiny vt. of India ved under t ments; foo nology (Har c industry ncluding ti ries ferrou and / or w luding arti Enterprises activity Guarante all Enterp Rs. 100/- la in Manufa 006.            (CLCSS) Fo by Governm the specifie nment of In y and SSI by providi the scheme od process rdware); dr particular les, dyes a us and cast working ca sans, villag s Sector, a ee Scheme prises acs to Micr cturing Sec                 or SSI Unit ment of Ind ed product ndia. units in ng 15% cap e, viz. leath sing (includ rugs and ph ly relating and interm t iron; and apital requ ge and cot and micro e Of Cred ro & Small ctor as we ts dia to facili ts/ sub-sec the spec pital subsidy her and lea ding ice-cr harmaceuti to design mediaries, t stone indu irement. S ttage indus /small (ser dit Guaran Enterprise ll as in Ser itate tors. cified y for ather ream cals; and toys; ustry Small strial rvice ntee s, as rvice
  7. 7.   7) S To mee requirem Micro, S with an Criteria should b and pro dealings 8) S To augm ratio an availabl instituti Micro, S with ann :-Satisfa be avail Liability perform not be dealings ME Short t temporar ments only. Small & Me nual sales a: Satisfacto be availabl ofits. Nega s with the B ME Mediu ment enter nd also for e for rep ons, but no Small & Me nual sales t actory cred lable. Tota y and equ mance in ter more tha s with the B Term Loa ry shortfall . dium Enter turnover ory credit le. Satisfac tive varian Bank for at m Term L prise’s wor meeting g payment o ot for any p dium Enter turnover of dit rating fo l Debt-equ uity ratio rms of Sale n 10%.Ave Bank for at ans l / mismat rprises as p of Rs. 1/- rating for t ctory financ nce, if any least three Loans rking capit genuine bu of secured purpose, wh rprises as p f Rs. 1/- cr or the last ity ratio sh should no es/turnover rage DSCR least Thre tch in liqui per Regulat - crore to the last th cial perfor y, should n e years. al gap and usiness requ and unse hich is not per Regulat rore to Rs. three yea hould not b ot be mo r and profit R should n e Years            idity, for m tory definit Rs. 150/- ree years L mance in t not be mo to help in uirements. ecured Lo related to tory definit 150/- cror ars Latest B be higher t ore than 3 ts. Negativ ot be less                 meeting ge tion and al crores. O Latest Bala terms of sa ore than 1 n improvem The facili oans of ot the enterp tion and al res. Other E Balance She than 4.5:1 3:1.Satisfac ve variance s than 1.7 enuine busi l other ent ther Eligib ance Sheet ales / turn 0%.Satisfac ment of cur ity will als ther banks prises activi l other ent Eligible Cri eet etc. sh and total T ctory fina , if any, sh 75:1Satisfac iness tities bility etc. nover ctory rrent o be s or ity. tities teria hould Term ncial hould ctory
  8. 8.   9) S To prov requirem paymen SME Gol bank fin Regulato crore to Capital Standard working arrangem 10) Financin enhance SME uni Bank of 11) To pro requirem ME Gold C vide hassle ments and t by buyers ld Card env nance for ory definiti o Rs. 150/ limits to m d Category capital li ment with Sche ng SMEs fo ement of en ts financed Baroda. Over vide hass ments/augm Card free on th tie up te s, tax paym visages pro Working C ion and all /- crores, meet emerg y for last 2 mits of Rs our bank/p eme for Fi or acquisiti nergy effici d by bank rdraft Aga le free c ment long t he spot ass emporary m ment, execu ovision of a Capital to l other ent on request gent requir 2 years, wit s. 25/- Lak proposed to nancing E on of equ iency/cons as also oth inst Land credit to term margi sistance to mismatch ution of bul additional l Micro, Sm terprises w t along wi rements. O th credit r khs and ab o be finance Energy Effi ipments, s ervation of her units d and Build SME borr n requirem            o take care in liquidity lk orders, e limit of 10% mall & Me ith annual ith regular Other Eligib rating of -4 bove. Acco ed under So iciency Pr services an f energy. desirous of ding rowers to ments.                 e of borrow y arising o etc. % of the as edium Ente sales turn r applicatio ble Criteria 4 and abov unts havin ole Banking rojects nd adopting shifting th meet w wers’ emer out of del ssessed elig erprises as over of Rs on for Wor a:- Accoun ve and enjo g sole ban g arrangem g measures heir accoun working ca rgent ayed gible per . 1/- rking ts in oying nking ment. s for nt to apital
  9. 9.   All Ente 2006, an exclusiv arrangem 12) To provi also lon cash flo spurt in All Ente 2006, an exclusiv arrangem 13) K To finan Instituti Village I erprises, i.e nd other en vely bankin ment with SME ide hassle g term req ow project the busine erprises, i.e nd other en vely bankin ment with Loan Khadi & Vi nce institut onal financ ndustries B e. Micro, Sm ntities with ng with ou our bank. Loan Pack free credit quirements, ions, peak ess. e. Micro, Sm ntities with ng with ou our bank. ns Under llage Indu tional finan cing agenci Boards, Reg mall & Med annual sal r bank/new k t for workin , taking int k time requ mall & Med annual sal r bank/new Interest S ustries Com ncing agen es – Khadi gistered Ins dium Enterp les turnove w borrowe ng capital to account uirements dium Enterp les turnove w borrowe Subsidy E mmission cies for le & Village In stitutions, C            prises, as d er of Rs. 1/- ers desirou (fund base nature of and any e prises, as d er of Rs. 1/- ers desirou Eligibility (KVIC-ISEC nding to K ndustries C Co-operativ                 defined und - crore to R s of havin ed and non- business, c eventuality defined und - crore to R s of havin Certificat C) hadi & Vill Commission ve Societies der MSMED Rs. 150/- cr g sole ban -fund based cyclical tre of unfore der MSMED Rs. 150/- cr g sole ban te Scheme lage Indust , State Kha s Act, rores nking d) as ends, eseen Act, rores nking e of tries, adi &
  10. 10.   14) a b S Dealer/D would b weighta shall tak 15) For acqu Saving o loan. Un issued b etc. or m 16) To meet Small e rehabilit tiny and include satisfyin STAR . Drawee B . Drawee B ponsoring Distributor be extende ge shall be ke a decisio Ener uiring/adop on energy c nits should by energy c must have c Natio t gap in pre ntrepreneu tation of p d small sca all industr ng the inv R CHANNE Bill Finance Bill Finance Corporate of goods r d based on e given to on based on rgy Efficie pting Energ costs should possess en consultant/ carried out onal Equit escribed mi urs for set otentially v ale industri rial units a vestment L CREDIT for Supplie e or Overdra e can be rated ‘AA’ n the refer the recom n merits in ncy Proje gy Saving Eq d be at lea nergy audit auditor acc t similar ass ty Fund inimum pro ting up ne viable sick ial units an nd service ceiling pr ers aft facility e a Manu and above rral of the mmendation each case. ects quipment a ast 150% of t report (to credited by signment fo omoters' co ew project SSI units i nd service industries rescribed            for Deale ufacturing e. Facilities e Sponsorin n of the Sp . and Energy cost of ser o be obtain y Bureau o or other re ntribution ts in tiny / rrespective enterprise (except R for tiny                 ers Unit, or s to Supplie g Corporat ponsoring C Conservati rvicing the ned at thei f Energy Ef puted com and/or in e / small sc e of the loc es [tiny ent Road Transp enterprises a Whole ers and Dea te. Though Corporate, on Measure proposed t ir cost initi fficiency, P panies. equity ale sector cation. Exi terprises w port Opera s] underta esale alers due Bank es. term ially) PCRA and sting would tors) aking
  11. 11.   expansio consider 17) Akshay Energy D Urja Sho Renewa through operatio Private opening Nodal A format. MNRE/S 18) For econ fixtures activitie Women than 51% on, modern red irrespe Aksh Urja Shops Devices an ops would ble Energy banks an on. Entreprene AUSs. The Agency (SN Incentives NA. Priya nomic activ etc. for ca es iii) Educa entreprene % of the fin nization, t ctive of the hya Urja Sh s are reta d Systems cover all y (MNRE) w nd monthly eurs, Reput e applican A) and sub s would be adarshini Y vities like i apital inves ation Loan eurs, wome nancial hold technology e location. hops ail outlets including S the distric will provide y recurring ted NGOs a t for open bmit propo e available ojana ) Purchase stment and en enterpri ding up-gradati which wou Solar Energ cts of the e support t g grant & and Manufa ning a shop osal for Ak e only afte of equipm d working c ises where            ion and di uld sell an gy Products country. T to the shop incentive cturer’s As p will cont kshay Urja er sanction ment, machi capital nee women en                 versificatio nd service s. The netw The Minist ps in term e for first ssociations tact the co Shops in of Akshay inery, vehi ds ii) Agric ntrepreneur on can also all Renew work of Ak ry of New ms of soft l two year are eligible oncerned S the prescr y Urja Sho cle, furnitu culture & A rs hold not o be wable kshay and loans rs of e for State ribed p by ure / Allied t less
  12. 12.   19) Any e organiza Solar W size). 20) a) Eligib Manufac without would m Scheme, borrowe extende eligible Banks to with SID compani Group le a can be one or Rs.100 l in such a Solar end user ations/com Water Heate Aksh ble borrow cturing and any colla mean any , the CGT er by a Me ed by a Ban for Guaran o a single b DBI would ies or othe ending thro ) Both Term covered. b more out lakhs) prov account/s. r Water He r such mercial org ers with bo hya Urja Sh wer would d Services) teral secu asset othe TMSE enco mber Lend k for a unit ntee Cover borrower s however b er legally co ough SHGs n m Loan and b) Where th of the sam vided collat eaters as Indi ganizations oth Flat P hops be new o to which c rity and/o er than bu ourages co ding Institut t already a r under the hall not be be eligible onstituted not eligible d Working he borrowe me can be teral securi ividuals, s (hotels, h late or Ev r existing credit faci or third pa siness asse mposite c tion of the assisted by e scheme. e eligible f for guaran bodies, ind e Capital (bo er is enjoyi covered u ity and 3rd            institution ospitals etc acuated Tu Micro and lity has be arty guaran et. b) Und redit bein e CGTMSE. State/Natio Joint fina for guarant ntee cover. dividual bor oth fund ba ing several upto the El d party gua                 ns, non- c). ubular Col d Small En een provide ntees. Coll der the Cre g extende However c onal Level ncing by tw ee cover. J . c). All ty rrowers, sm ased and n l distinct c ligible Amo arantee are comme lectors (of terprises ( ed by the ateral Sec edit Guara ed to a si credit facil Institutions wo comme Joint Finan ypes of firm mall busine non-fund ba redit facili ount (prese e NOT obta ercial f any (both Bank urity antee ingle lities s are ercial ncing ms / sses. ased) ities, ently ained
  13. 13.   5. Ex Banks p such as 1) P Pre ship • P • C • P • P • S • M 2) P P shipmen finance 3) P p m c b xporters rovides di Pre-shipme Pre shipme pment finan rocure Raw Carryout ma rovide a se rocess & pa hip the goo Meet other f Post shipm ost Shipme nt of good is provided Packing Cr PACK rovided by manufacturi redit open uyer or a Loan. fferent typ ent, Post-sh ent nce is sanct w material anufacturin ecure wareh ack the goo ods to buye financial co ment ent financ s to the d d against ev redit. KING CREDI y a bank t ing or pack ed in his f confirmed pes of Loa hipment Pa tioned to ex ng process house for G ods er ost of busin ce is sanct date of re vidence of T is any l to an expo king of goo favor or in and irrevo ans to Expo acking Cred xporters be Goods & Raw ness. tioned for ealisation o shipment o loan or ad orter for f ods prior to n favor of ocable orde            orters in Lo it. efore shipm w material export sa of Export of goods. vance gran financing t o shipment, some othe er for the e                 ocal and Fo ment for fol s ales receiv proceeds, nted or an he purchas , on the ba er person, export of g oreign curr llowing able after Post shipm ny other c se, proces asis of lette by an over goods from rency the ment redit sing, er of rseas m the
  14. 14.   p c lo 6. Ag Agricult provide Agriclin practice trends a health e Agribusi and othe The sch agricultu farming Funding roducing c ountry hav odgment of griculture ure sector special fun 1) Agric nics are env es, technolo and prices etc. which iness centr er farm ser heme is o ure like ho piscicultur 2) Cold is provided country or ving been f export ord e loan. in India is nding optio clinics & A visaged to p ogy dissem of various would enha res are env rvices. open to A orticulture, re and othe Storage. d for Cold s any other placed on ders or lett s considere ns which ar Agribusine provide exp ination, cr crops in th ance produ visaged to p Agriculture , animal h er allied act storage of a r evidence the expo ter of credi ed as prior re listed be ss pert service op protect he market uctivity of c provide inp Graduates usbandry, tivities. agricultura            of an ord orter or so t with the rity sector elow. es and advi ion from p and also cl crops/anim put supply, s/Graduate forestry, d l products.                 der for exp me other bank has b for fundin ce to farm ests and di linical serv mals. Agribu farm equi es in subj dairy, vete port from person, un been waived ng .Some b ers on crop iseases, ma vices for an usiness cen pments on ects allied erinary, po that nless d. banks pping arket nimal tres: hire d to ultry
  15. 15.   The adv propriet To enab credit a farmer a one han storage farmer a the com fa sh O in fo lo fo Financin of small the farm vances ma tary/ partn 3) Comp ble the farm assistance a an opportu nd and to period till a fully liqu mposite cash a)Ind arming co- hare cropp Only farmer n the cold or finance oans from t or finance u 4) Poult ng can be c l poultry (la mers and ag ade to ind ership conc posite Cash mer to unde and increas nity to ear meet a pa better pric id savings m h credit acc ividual farm operative pers with r rs engaged storage / against sto the Bank fo under prod try Develop considered f ayer or bro gricultural dividuals, cerns and j h credit Sc ertake imp se farm pr rn a fair ret art of the ces prevail module by count when mers, regis societies o recorded ri in product warehouse orage recei or raising t duce marke pment for the foll oiler) units labourers. group of oint sector heme. roved prac roduction a turn on sea domestic in the mar allowing to n he is cash tered partn owning agri ights are e tion of cro e godown / ipts. c) The the concer ting loan sc lowing type of 200 to 5 Individual            individuals r companie tices of cro and produc asonal inves requireme rket, on the o earn inte h rich. nership firm icultural la eligible for ps and pro regulated e farmers w ned crop in cheme. es of poultr 500 birds as registered                 s, coopera s for cold s op producti ctivity. b) T stment in t ents of the e other. c) erest on cre ms, compan and, regist r availing c oduce suita market ya who have a n that seas ry schemes s subsidiary partnershi ative socie storage unit ion with Ba To provide the farm on e family du To provide edit balanc nies, regist ered tenan crop financ able for sto ard are elig availed of son are elig . Establishm y occupatio ip firms lim eties, ts ank’s e the n the uring e the es in tered nts / ce.b) orage gible crop gible ment on by mited
  16. 16.   compani technica poultry in o a tr 7. Pr The fina based u and equ the proj cash flo seconda 8. Bu Business corporat acquisit ies and r al personn units. 1. Ind n poultry ccupation. re eligible rained/ tec roject Fin ancing of pon a non- uity used to ject. Projec ow for rep ary security siness Loa s loans ar tions, to m ion of fixed registered nel and m dividual far manageme 2. Individu for bank chnically qu ance: long-term recourse o o finance th ct financing payment, w y or collater ans: e available meet their d assets) to co-operati anagement rmers/agric ent are t al registere credit for ualified per infrastruc r limited re he project g is a loan with the p ral. e to self r operating owards star ive societi t experts cultural lab taking up ed partner large pou rsonnel for cture, indu ecourse fin are paid b structure t project's as employed g expenses rting or exp            ies having for runnin bourers who poultry f ship firms, ltry units. running th strial proj nancial stru ack from t that relies ssets, right profession s, finance panding a b                 necessary ng followin o are exper farming as limited co These uni he unit ects and ucture wher he cashflow primarily o ts, and int nals, firms capital e usiness. y trained ng comme rienced/tra s a subsid ompanies, e its should public serv re project w generate on the proj terests hel s, Traders expenditure and ercial ained diary etc., have vices debt ed by ject's ld as and e (or
  17. 17.   1) Profes Charte etc to 2) Trad eith 3) Banks intere eligib a fixe 4) Few s repute real e ) Professio ssional loan ered Accou o meet their ) Trade Lo de loans ar her open a ) Mortgage s provide lo est. Business le to apply d asset. ) Real Esta selected ban e. Banks en estate for pr onal Loan ns are prov ntants, Inte r operating e oans. re provided new busine e Loans. oan against smen, self e for the loan ate Loans nks give real nter into Ag roviding Rea ns. ided to sel erior Decora expense, fin d to trader ess or opera mortgage employed p n. It enables s. l estate loan greements w l Estate Loa            lf employed ators, Archi ance and ca rs/ business ate/expand of property rofessionals s the borrow ns to builde with Builde ns.                 d profession itects, Com apital expen smen, so a d an existin y on an at , salaried c wer to apply rs/real esta ers/Promote nal like Doc mpany Secre nditure. as to help t ng one. tractive rat customers ar y for loan ag ate develope rs/Develope ctors, etary, them te of re all gainst ers of ers.of
  18. 18.   Brief d Banks al some of 1. B It th h 2. A re u th 3. It c descript lso provide the types Bank Guar t is a type o he liability o is customer Letters o A letter fro eceived on nable to m he full or re Collectio t is a type ustomers a tion Non e for Fundin of non fund rantees :- of service p of its Custom liability . of Credit om a bank n time and make payme emaining a on of Bills of service and collects n Fund B ng option w d Base activ - rovided by mer, if custo :- guaranteei for the co ent on the amount of t s on beha provided s local and Base. where actu vity. Bank to Cus omer fails to ing that a orrect amo purchase, the purchas alf of Cust by bank in outstation            al funds ar stomer whe o pay. In ot buyer's pay ount. In the the bank se. tomers :- which Ban dues.                 re not evol re banks Gu her words yment to a e event tha will be req nks act as ved. Below uarantees to bank Guaran a seller wi at the buy quired to c an agent o w are o Pay ntees ll be yer is cover of its