SBI e-Dealer Finance Scheme: The MSME sector’s traders, wholesalers, dealers, and distributors can use this loan to get the money they need for working capital. This loan is based on need. The fact that the bank offers 100% financing for this loan sets it apart from others.
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Things to know about SBI e-Dealer Finance Scheme:
- “Supply chain finance” offers short-term credit that helps both the buyer and the seller’s working capital.
- The electronic vendor financing program offered by SBI allows for the financing of the receivables of reputable corporate partners and industry majors (IMs) with whom tie-up agreements have been made. The program gives instantaneous credit to vendors’ accounts electronically and is entirely a web-based solution with little branch involvement.
- With the help of SBI’s electronic vendor financing program, both the industry leaders with whom tie-up agreements have been entered into and their suppliers are able to meet the goal of just-in-time production. The vendors benefit from prompt funding availability.
- SBI’s electronic dealer financing scheme provides for financing purchases of dealers from corporates/Industry majors (IMs) with whom tie-up has been entered. It is also completely web based solution. The Industry Major enjoys timely availability of funds.
- The dealer can make effective utilization on working capital funds via bank’s electronic dealer financing scheme. Both Industry Major and dealer can make use of improved cash flow forecasting. It provides 100 per cent financing, low collateral and competitive pricing, said SBI.
Why this Loan?
- The SBI e-Dealer Finance is ideal for dealers, stockists, and distributors in the Medium, Small, and Micro Enterprise sector to access funds for working capital needs.
- This program is offered by the bank as a cash credit facility.
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Interest rate of e-Dealer Finance Scheme
The interest rate applicable to this loan is defined as the sum of one-year Marginal Cost of Funds based Lending Rate (MCLR) and Strategic Spread. Currently, one-year MCLR of SBI is 7.00% and the Strategic Spread may range from 0.55% to 3.00%. This means that the effective interest rate may range anywhere from 7.55% to 10.00%
Loan Amount
In State Bank of India e-Dealer Finance Scheme, the loan is based on need.
Repayment
This scheme has a credit period of 90 days. It can be renewed on an annual basis
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Security
- As primary security for this loan, the bank requests the hypothecation of stocks, accounts receivable, and other assets it has financed.
- As additional security for this loan, the bank may request a mortgage of real estate, whether residential or commercial.
Documents Needed for Individuals
- Loan Application Form duly filled and signed by the applicant and co-applicant, if any
- Two Passport Size Photographs of applicant and co-applicant
- Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card / PAN Card Issuing Letter is must
- Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
- Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Income/Banking Proof: Last 6 months Bank Account Statement of applicant and co-applicant, Loan Statement of Running Loans, Latest Closed Loan NOC, Net Worth of the applicant and co-applicant
- Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
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