FAQ’s | Summit Bank

FAQ’s

1.    How many products are being offered by SMBL SME Division?

Presently, we are offering all generic products.

 

2.    What are these Products?

  • Running Finance/Overdraft Facility
  • Lease Finance/Term Finance Facility
  • Cash Finance Facility
  • Trade Finances
  • Letter of Credit (L/C-Sight, L/C-Usance)
  • FATR/FIM
  • Letter of Guarantee

 

3.    What is tenure of these Products?

  • Running Finance- One Year on Revolving Basis
  • Lease Finance-3 to 5 Years
  • Cash Finance-One Year on Revolving Basis
  • Term Finance-One Year on Revolving Basis
  • Letter of Credit-One Year on Revolving Basis/Single Transaction Basis
  • Letter of Guarantee-Specific/Indefinite Period

 

4.    What is the purpose of these Products?

Fund & Non Fund Based Facilities:

  • For Working Capital Financing
  • For Fixed Asset Financing
  • For Trade Financing etc
  • Performance Bond/ Bid Bond/ Advance Payment Guarantees

 

5.    What amount of financing can be availed?

  • Small Enterprises (SE) – up to Rs.25 Million.
  • Medium Enterprises (ME) – up to Rs. 200 Million.

 

6.    What type of securities are required by the Bank?

  • Any residential/commercial/industrial property, but not of remote area
  • Government Securities like Defence/Saving Certificates
  • Lien on Foreign/Local Currency Account
  • Corporate /Counter Guarantee
  • Pledge of Stocks
  • Personal Guarantees of Sponsor/Mortgagors/Others along with other securities

 

7.    Is premature termination of facility allowed?

Yes.

For information on penalties please refer to SMBL’s Schedule of charges.

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Last Updated 2017-11-09


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