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This section provides broad description about different funding facilities provided from different banks with a list of Nationalise and Private Banks. For the specific requirement details, it is suggested to go to the site of each bank.

Fund based Bank Facilities

Term Loans: Term loan is an installment credit repayable over a period of time in monthly/quarterly/half yearly/yearly installments. Term loan is generally granted for creation of fixed assets required for long-term use by the unit. Term loans are further classified in three categories depending upon the period of repayment as under:

  • Short term repayable in less than 3 years.

Cash Credit Facility: a major part of working capital requirement of any unit would consist of maintenance of inventory of raw materials, semi finished goods, finished goods, stores and spares etc. In trading concern the requirement of funds will be to maintain adequate stocks in trade. Finance against such inventories by banks is generally granted in the shape of cash credit facility where drawings will be permitted against stocks of goods. It is a running account facility where deposits and withdrawals are permitted. Cash credit facility is of two types (depending upon the type of charge on goods taken as security by bank).

(i) Cash credit - pledge: when the possession of the goods is with the bank and drawings in the account are linked with actual movement of goods from/to the possession of the bank. The physical control of the goods is exercised by the bank.

(ii) cash credit- hypothecation: when the possession of the goods remains with the borrower and a floating charge over the stocks is created in favour of the bank. The borrower has complete control over the goods and the drawings in the account are permitted on the basis of stock statements submitted by the borrower.

Overdraft Facility: Overdrawing permitted by the bank in current account is termed as an overdraft facility. Overdraft may be permitted without any security as 'clean overdraft' for temporary periods to enable the borrower to tide over some emergent financial difficulty. 'Secured overdraft' facility is against fixed deposits, NSC, and other securities.

Bills Finance: This facility is against bills of sales raised or book debts.

Export Finance: Banks grant export credit on very liberal terms to meet all the financial requirements of exporters. The bank credit for exports can broadly be divided in two groups as under:

1. Pre Shipment advances/packing credit advances: Financial assistance sanctioned to exporters to enable them to manufacture/procure goods meant for exports and arrange for their eventual shipment to foreign countries is termed as pre shipment credit.

2. Post shipment credit the bills purchase/discount facility granted to exporters is grouped as post shipment advance.

Credit facilities, which do not involve actual deployment of funds by banks but help the obligations to obtain certain facilities from third parties, are termed as non-fund based facilities. These facilities include issuance of letter of credit, issuance of guarantees, which can be performance guarantee/financial guarantee.

  • National Level Financial Institutions
  • State Financial Corporations Offering Specialised SSI Schemes
  • Venture Capital Organisations
  • Other Banks Offering Financial Assistance
National Level Financial Institutions
Small Industries Development Bank of India [SIDBI] Industrial Development Bank of India (IDBI)
Industrial Finance Corporation of India (IFCI) National Bank For Agriculture And Rural Development (NABARD)
ICICI Bank State Bank of India (SBI)
State Financial Corporations Offering Specialised SSI Schemes
Andhra Pradesh State Financial Corporation (APSFC) Arunachal Pradesh Industrial Development and Financial Corporation (APIDFC)
Assam Financial Corporation (AFC) Bihar State Financial Corporation (BSFC)
Delhi Financial Corporation (DFC) The Economic Development Corporation (EDC) of Goa
Gujarat State Financial Corporation (GSFC) Haryana Financial Corporation (HFC)
Himachal Pradesh Financial Corporation (HPFC) Jammu & Kashmir State Financial Corporation (J&KSFC)
Karnataka State Financial Corporation (KSFC) Kerala Financial Corporation (KFC)
Madhya Pradesh Financial Corporation (MPFC) The Maharashtra State Financial Corporation (MSFC)
Orissa State Financial Corporation (OSFC) Punjab Financial Corporation (PFC)
Rajasthan Financial Corporation (RFC) Uttar Pradesh Financial Corporation (UPFC)
West Bengal Financial Corporation (WBFC)  
Venture Capital Organisations
ICICI Venture Funds Management Company Limited IFCI Venture Capital Funds Ltd.
SIDBI Venture Capital Limited (SVCL) IL&FS Group Businesses
Gujraj Venture Finance Limited (GVFL)  
Other Banks Offering Financial Assistance
Canara Bank Corporation Bank
Bank of India Indian Bank
Indian Overseas Bank IndusInd Bank Ltd.
Syndicate Bank State Bank of Travancore
Union Bank of India UCO Bank


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