Working Capital – Mumbai

Click to apply for Working Capital in Mumbai

Indexia Finance: Empowering Businesses with Working Capital in Mumbai

At Indexia Finance, we harbor a robust appetite for acknowledged credits, aiming to be the go-to source for your financial needs. Our dedicated team, comprising customer-centric relationship managers with extensive industry experience, excels at tailoring working capital in Mumbai finance solutions through cash credit or loans. Whether in consortium or as a sole banker, we cater to your specific needs and risk profile, bringing banking to your doorstep.

Eligibility Criteria for Working Capital in Mumbai:

  1. Industrial Concerns Defined: Limited companies fall under the definition of industrial concerns in the IDBI Act.
  2. Underfinanced Entities: Limited companies lacking sufficient working capital, particularly those previously underfinanced and operating below capacity.
  3. Market Demand: Existence of market demand for the product.
  4. Competent Promoters: Promoters with competence and integrity.
  5. Technology Standards: Use of up-to-date technology.
  6. Potential Viability: The company and the unit must show potential viability.

Objective

Designed for units encountering challenges due to a lack of working capital support from commercial banks, this scheme aims to make these units viable through a one-time core working capital infusion.

Quantum of Assistance:

  1. 75% of Working Capital Requirement: Covering one cycle of operation.
  2. Promoters’ Contribution: 25%
  3. Interest Rate: PLR + weightage of risk.
  4. Repayment Period: Maximum 3 years

Borrowers can approach commercial banks for normal working capital requirements at any time during the loan’s currency. Upon sanctioning by the bank, the working capital loan from NEDFi should be repaid from the bank’s sanctioned loan proceeds. NEDFi will release its charge on current assets and concede a second charge on fixed assets if required by the bank.

Security:

  1. First Charge: By hypothecating current assets.
  2. Charge on Fixed Assets: Of the unit.
  3. Personal Guarantee: Of Promoter Director/Corporate Guarantee.
  4. First Pari passu Charge: On fixed assets, if mortgaged to other institutions/banks.
  5. Adequate Collateral Security.
  6. Upfront Fee: 0.1% of the loan amount.

Documents Required for Working Capital in Mumbai

To facilitate your working capital needs in Mumbai, the following documents are necessary:

  1. Self-attested copy of KYC Documents.
  2. Entity proof – Partnership deed/Certificate of Incorporation/Shops and Establishment certificate.
  3. Copy of PAN Card for Entity, Proprietors/Partners/Directors, Security providers, and guarantors.
  4. Address Proof for Entity, Proprietors/Partners/Directors, Security providers, and guarantors.
  5. Last 3 years Audited/Provisional Financials (including Balance Sheet, Profit, and Loss Account, schedules, Notes to Accounts, tax audit reports, and Statutory Audit report).
  6. Current year performance and projected turnover on the entity’s letterhead.
  7. Last 1-year Income Tax returns of the borrowing entity (along with Computation of Income).
  8. Latest Bank Statements for the last 6 months (in case of First Time Borrower) and 12 months (in case of Takeover proposals).
  9. Orders in hand and status, along with order copies/Letters of intent/Contract agreements.
  10. Previous 3 inland LC transaction details for ascertaining the track record.
  11. Project report containing the cost of the project, means of finance, expenditure incurred, and projections along with justifiable details.
  12. Government approvals for power, Pollution, and Building plans along with documentary proofs.
  13. Pro forma invoices of assets to be purchased, copy of allotment letter/conveyance deed in case of land, architect certificate for validating cost of building to be constructed.
 

Conclusion

Indexia Finance: A Top Finance Company and best Loan Service Provider, is your comprehensive loan destination where dreams find fulfillment. Feel free to reach out to Indexia Finance for seamless working capital solutions tailored to your needs.