Fund Based Working Capital Finance:

Cash Credit:

It is a type of Fund based loan which is short term in nature and fixed in the limit. It is usually extended by our bank to a company to meet its working capital requirements. It is provided as a running facility only like current account.

WCDL:

It is a short term Loan for a period of 180 days given as a part of working capital facility. Loan can be repaid in bullet repayment or amortization basis.

Features:

• Borrower's external rating should be BBB or above.
• Facility to be secured by Stock and Book Debts. Age of Book Debts should be below 90 days.
• Collateral security is required.
• Company needs to provide CMA data along with three years financial statement.
• The Loan is for a period of 12 months.
• The sanction of the credit facility is at the sole discretion of the Bank.
• Kindly contact nearest IOB Branch for more details and your requirement.

Cash Credit Against Deposit:

It is a fund based short term loan given to business houses and corporates for meeting short term capital requirements. It is a running account facility like current account and the loan is given against own Fixed Deposit account with IOB. Kindly contact nearest IOB Branch for more details and your requirement.

Demand Loan Against Deposit:

It is a fund based short term loan given to business houses and corporates for meeting business purpose requirements. The loan is given against own Fixed Deposit account with IOB. Repayment of the loan to be done in one bullet repayment at the end of the loan tenure. Kindly contact nearest IOB Branch for more details and your requirement.

Miscellaneous Cash Credit:

To encourage trade credit to those who cannot submit financial statements and to those, who find it difficult to submit monthly stock statement or where monitoring/inspecting of current assets are difficult on an ongoing basis, Bank is extending credit against immovable properties to the extent of 50% of the forced sale value of the property. Kindly contact nearest IOB Branch for more details and your requirement.

Bridge Loan:

Bank will sanction bridge loans to companies (other than Non-Banking Financial Companies and Residuary Non-Banking Financial Companies) for a period not exceeding one year against expected equity flows/issues. Kindly contact nearest IOB Branch for more details and your requirement.

Line of Credit:

The Bank shall consider Line of Credit for speedy delivery of credit to reputed corporate/Public sector undertakings. Kindly contact nearest IOB Branch for more details and your requirement.

Short Term Loans:

Corporates shall be looking for loans from Banks and Financial Institutions for

general corporate purposes. In order to meet their short term requirements short term loans are granted by the Banks.

Eligibility:

Constitution: Listed companies, Societies, Government Departments, Institutions, Statutory Corporations, Unlisted Corporates with . a record of growth in sales and profit for the last 3 years.

Rating: Rating should be at least not less than 1085 (Internal rating) or BBB (External rating).

Asset Status: The account should not have been classified as NPA during last three years.

Purpose:

1. To meet short term requirements of Corporates.

2. To meet Working Capital requirements.

3. For project related expenses.

4. To repay/swap high cost debts.

5. To meet on-going capital expenditure.

6. For acquisition of commercial assets.

7. Short term cash flow mismatches.

8. Any other business related purposes.

9. Other general corporate purposes.

10. Not for investment in capital markets.

11. Not for any speculative purposes.

12. Not for any diversion of funds for any unapproved purposes.

13. Not for investing in unrelated real estate.

14. Not for investment in Associate firms.

15. Not for any purpose restricted by RBI/Govt. guidelines.

Repayment Period:

I. For fully secured advances, the repayment period shall be maximum 12 months.

II. For partially secured or not fully secured short term loans, the repayment period shall be maximum six months; however, if collateral security has been created within this period the loan may be extended for another six months.

Kindly contact nearest IOB Branch for more details and your requirement.

Non-Fund Based Working Capital Finance:

Bank shall provide NFB facilities to its customers based on the past performance and evaluation of the future need for the same as per borrower's business plan. Non Fund Based facilities are sanctioned by way of Letters of Guarantee, Letters of Credit, Standby Letters of Credit for imports· and domestic procurements, Trade Credits etc. Kindly contact nearest IOB Branch for more details and your requirement.

Letter of Credit

Letter of Credit is established on behalf of the customers for working capital needs such as procurement of indigenous and imported raw materials, etc. LCs are also established for capital expenditure of the constituents. The LCs are issued on Document against Payment (DP) or Document against Acceptance (DA) terms based on the requirements of the borrowers.

Features:

• Bank shall ensure that the applicant has adequate resources to -rneet the commitments under the LC on the respective due date and wherever necessary, amortization schedule is stipulated.

• Margin as per norms to be provided.

Letter of Guarantee

Guarantees shall be issued by the Bank on behalf of customers only. Various Guarantees issued by the Bank depend upon the purpose (such as Performance, Bid Bond, Security deposit, Advance Payment, Shipping Guarantee etc.). Guarantees are issued on behalf of the customers, in favour of the beneficiary for fulfillment of commitments or for due performance of a contract or for due payment of monetary obligations by the customer.

Features:

• Customer should have necessary experience. capacity and means to perform the obligations under the contract.

• Adequate margin as per norms to be provided. In cases, customer can also provide 100% margin in form of FDR/ Cash margin.

STANDBY LETTER Of CREDIT(SBLC):

Standby Letters of Credit shall be issued in connection with payment of margin money in respect of approved commodity hedging transaction subject to terms and conditions as stipulated by the Reserve Bank of India from time to time. Standby letters of credit favouring overseas lenders for purpose of such as raising buyer's credit/ to facilitate wholly owned subsidiaries/ Joint Venture (JV) abroad owned by our customers shall be issued as per RBI guidelines issued from time to time. SBLC shall not be issued for purposes which are prohibited by RBI guidelines.

Solvency Certificate:

Solvency Certificate is required for providing to government authorities, other corporates in business deals, bids, etc. providing information about the financial stability of an individual/entity. Our Bank provides the same to its clients based on internal guidelines.

Project Financing:

Project finance is the funding (financing) of long-term infrastructure, industrial projects, and public services using a non-recourse or limited recourse financial structure. The same is given in form of Term Loan and Capex LC. Term loans are extended for acquisition of fixed assets like land, building, plant and machinery, vehicles, furniture and fixtures.

Features:

• External Rating should be more than BBB.
• Total Tenure of Term Loan will be for a Maximum period of 15 years.
• Debt-Equity Ratio should be 3:1.
• Adequate collateral security to be provided.
• Refinance of project finance also dene by Bank.

Kindly contact nearest IOB Branch for more details and your requirement.

Bills Financing

Our Bank Purchase and Discount Inland bills backed/ not backed by LC.

Features:

• Bills financing facilities will be treated as a part of working capital finance
• Rediscounting of usance bills discounted by other banks available.
• Bill purchase / discounting facility may be extended to non-constituent beneficiary of an LC in case negotiation restricted to our Bank.
• Discounting of Bills under LC with "Without Recourse" Clause.

Kindly contact nearest IOB Branch for more details and your requirement.

Gold (Metal) Loans:

Our Bank is a nominated Bank by RBI to extend Gold (Metal) loans. Tenure of the loan should be equal to the Working Capital Cycle of the unit subject to maximum of 180 days for domestic manufacturers and 270 days for exporters.

Features:

• Loan will be given in form of Gold Metals which has to be repaid in the form of metal or equivalent Amount on maturity.
• Adequate margin to be maintained.
• Gold (metal) loan will also be extended to domestic jewellery manufacturers who are customers of other scheduled commercial Banks against their Standby LC (SBLC) I Bank Guarantee [BG).
• SBLC/BG Facility for availing Gold Metal Loan with other nominated Bank is also available.

Kindly contact nearest IOB Branch for more details and your requirement.

Liquirent Advances:

Liquirent Loans are granted to Lessor(s) against the rent receivables (Securitisation of Rent receivables of on the building property let out on lease by way of term loans only.

Features:

• Loan to customers who have leased their properties to credit worthy establishments like reputed companies/ Public sector undertakings/ Established Commercial Organizations/ Multinational Companies/ Banks and other reputed institutions.
• Tenor of loan upto 180 months.
• Top-up loan available.

Kindly contact nearest IOB Branch for more details and your requirement.

Takeover of Accounts

Our bank extends credit facilities to borrowers for closing accounts with other banks or takeover share of other banks in a consortium as per requirement of the borrower subject to fulfillment of Bank's internal guidelines.

Kindly contact nearest IOB Branch for more details and your requirement.

FOREIGN CURRENCY LOANS:

Working Capital Loan in Foreign Currency (WCFC)/ Foreign Currency Term Loan (FCTL):

Bank shall extend Foreign Currency Loans subject to availability of foreign currency funds as under:

I. Working Capital Loan in Foreign currency (WCFC) to meet the working capital needs of the borrowers towards cost of raw materials acquired locally or imported from abroad.

II. Foreign Currency Term Loans (FCTL) for capital expenditure.

III. Packing Credit / Bills purchase and discounting in Foreign Currency towards export credit as working capital.

Foreign Currency Loans Against FCNR(B) Deposits:

Bank shall extend Foreign Currency Loan against FCNR (B) deposits with 10% margin on face value of deposits. Such loans shall be given to the deposit holders or third parties.

Kindly contact nearest IOB Branch for more details and your requirement.