Term Loans
Features
Federal Bank offers term loans for Mid / Large corporates having turnover more than Rs.500 Crores or projects with outlay of Rs.500 Crores or more OR minimum exposure (Funded + Non Funded) of Rs.25 Crores. Term loans are provided to extend long term credit facilities to entrepreneurs such as:
Expansion & Modernization, setting up of factory building and other infrastructure facilities
Substitution of high cost debts / high cost term debts of other Banks / FIs
Up-gradation of technology & energy conservation schemes / machinery
Design and introduction of new layouts in the factory to enhance productivity
Acquisition of software, hardware, consumable tools, jigs, fixtures etc
Acquisition of ISO and other similar certifications
Loans under Technology Upgradation Fund Scheme(TUFS)
Securitisation of receivables
Period of the loan will be up to 60 months. Repayment can be made In Monthly /Quarterly / Half yearly installments or bullet repayments.
Eligibility
- All Corporates having turnover Rs.500 Crores and above will be considered under Large Corporate portfolio or minimum exposure ( Funded + Non Funded) of Rs.25 Crores.
- Eligibile limit is Minimum Rs.25 Crores.
Security
Primary
- Mortgage/ Hypothecation of fixed assets/machinery/ assignment of leasehold rights/ exclusive or specific charge on machinery being financed.
Collateral
- Extension of charge over current assets
- Additional tangible security such as immovable properties / bank deposits etc.
- Pledge of promoters holdings
- Negative lien on current assets
Others
- Personal guarantee of Proprietors / partners / promoters
- Corporate Guarantee
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