Term Loans

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Term Loans

Term Loans

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.

  • Features
  • Eligibility
  • Security
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.

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.

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