Unsecured Loans

UNSECURED OVERDRAFTS

Often businesses, especially the small and first generation start ups are not in a position to avail overdraft facility from banks simply because they cannot offer any collateral to the banks. It is a common enough experience that when you approach your banker for a working capital facility his one of the first questions to you is what collateral can you offer. Even for increasing the existing credit lines the banks more often than not ask for additional collaterals. This becomes a huge hindrance for arranging working capital or enhancements of existing limits.
We can arrange for overdraft facilities from banks without asking for security on the basis of your business value. This is a very useful for first generation businesses. The limits will be based on last year's performance. Backed by a guarantee from the central government.
All that is asked of is that the business be operating for more than 3 years with a turnover of more than Rs.100 lacs and having profits and SSI registration.

UNSECURED TERM LOANS

Many a times the books of accounts show profits which are much less than industry averages. When you approach a banker for unsecured business loans, they do the loan eligibility calculations based upon the profits that the business is showing in the books. This leads to a lower amount of loan being sanctioned that what you require.
We can arrange for EMI based unsecured term loans from banks which do not calculate the amount of loans to be sanctioned based upon the profits that you show in your books of accounts. These Loans will be based on the business volumes you do, so the amount of loans will be much higher and the tenure of the loans can also be higher. Further businesses having exiting bank limits can also avail of this facility without requiring any NOC from their existing bankers.
Any business having turnover of more than 300 lacs and having profits for last 3 years can avail of this facility.

UNSECURED WORKING CAPITAL LOANS

Often businesses, especially the small and first generation start ups are not in a position to avail LC or PCL facility from banks simply because they cannot offer any collateral to the banks. It is a common enough experience that when you approach your banker for a Letter of Credit or a Packing Credit, his one of the first questions to you is what collateral can you offer. Even for increasing the existing credit lines the banks more often than not ask for additional collaterals. This becomes a huge hindrance in arranging for arranging for working capital limits or enhancements of existing limits.
We can arrange for facilities like Packing Credit/Letter of Credit/Bank Guarantees from banks without asking for collaterals. This is a very useful tool for first generation businesses who can avail of overdraft without any collateral. This will be backed by a cash margin, which anyway even regular banks ask for in addition to the collaterals. The limits will be based on last year's performance. These facility will be backed by a guarantees from the central government.
Any MSME registered business having turnover of more than 100 lacs and having profits for last 2 years can avail of this facility.

CREDIT CARD SECURITISATION

There is a retail boom in the country. Further these days more and more retail sales are paid for by credit cards. Credit card swipes have become an integral part of every retail business. In the coming years the percentage of Credit Card sales is going to keep on increasing as against payment of cash.
We can arrange for Overdraft facilities and term loans against the future credit card swipes. There will be no requirement of any collateral. Further the moment a card is swiped your account will be credited and you can save interest costs.
Any business having credit card sales of more than 24 lacs in the last 12 months, sales of over 40 lacs and profit in the last year can avail of this facility.

WAREHOUSE STOCK FINANCE

India was mainly an agricultural economy, and even today the agricultural production and trading comprise a sizable percentage of our economy. Many of our industries are also based on agricultural raw materials. Agriculture being a seasonal business there are times you need to keep extra stocks so that there is material ready as and when you require it. Also there are always chances of increase in price, so keeping higher stocks can make a lot of sense. But to keep higher stocks you need to have cash so that you can buy more stocks.
We can arrange for loans against the pledge of stocks of agricultural commodity held by you. This will not require any collateral. All you need to do is pledge your existing stock and avail of ready finance. You can repay the loan anytime to release the stocks even in parts. Further you can set up a limit and draw or repay as per your business demands.
Any business having agricultural stocks of over 50 lacs can avail of this facility.

PERSONAL LOANS

Many a times you may require some amount of loans for undisclosed reasons and purposes and do not want to offer any security on these borrowings. You may also be a salaried person or a retired person or a professional and want loans which may not be used for your business.
We can arrange personal loans from various banks and taken together they can be quite a substantial sum. This will be based on just your past incomes and there are no restrictions to the end use of the money.
Any person having a regular sustainable income of over 1.00 lac can avail of this loan. In case of non availability of income we can also use income surrogates like, repayment track record/Credit Card usage/insurance premium payments/ Salary slips/ SIP investments etc.

FACTORING

Often the sales that you make are with certain credit terms. The buyer will make payments to you after the passage of a certain amount of time after shipment of the goods or providing of the service. However you may need to make certain payments and would like to have that money upfront. The banks can provide the money upfront through the route of factoring. Factoring is like selling of your receivable to a bank where the banks will pay you up to 90% of your invoice value on submission of documents and invoice. The major advantage of factoring is that you can take factoring facilities over and above your regular working capital facilities and you do not need to provide any collaterals. This can be in conjugation with credit insurance also, wherein the insurer takes the risk of default by the buyer and you get your money even if the buyer does not pay up.
We can arrange for factoring facilities at most competitive rates of interest.

REVERSE FACTORING

Every business activity must ultimately result in a sale. But for the sale to happen you must first have the goods ready. To get the goods ready for shipment to the buyer you need to buy the raw materials, do the value addition which is your speciality, and pack the same. Many a times it needs more time to get the whole consignment ready and you cannot get adequate credit for the suppliers or you may get a better margin if you can avail of the cash discounts. To do that you need money. One of the ways to get credit from your suppliers, and your supplier still getting the cash upfront is to go for a reverse factoring. In reverse factoring, the bank will pay your supplier upfront the amounts due to them from you and you can pay back the bank in due course of time. So your small suppliers whose papers do not justify credit facilities from their bank can also avail of this facility as these are based on your strength and not his. Further more as this is an unsecured facility, neither of you have to provide any collateral. This is a great way of augmenting additional credits.
We can arrange for reverse factoring facilities at most competitive rates of interest.

SHORT TERM LOANS

It is often found that while assessing the amount of working capital facilities to be sanctioned, the banks do not do justice to the borrower. So the limits are less than he needed. Further many a times, there can be an increased requirement of funds, after the assessment is over, but the existing bankers are not willing to lend more funds as the next assessment is not due. For listed and rated corporates we can arrange for a short term loans of 6-12 months tenor to meet this working capital gap. This arrangement will be outside the existing consortium and does not require any NOC from the existing bankers. Further the company does not need to provide any separate collateral for this facility.
We can arrange for Short Term Loans at most competitive rates of interest and at a very fast pace.