A.
Direct Bills Discounting
Sale
Bill Discounting
The bank discounts bills of exchange representing sales
of a
company, which are duly accepted by the drawee (buyer
of the
goods). The bills of exchange to be accompanied by -The
invoice
drawn by the drawer of the bill
1)
Proof of movement of goods to the drawee (generally
a goods
transport receipt is insisted from IBA approved transporters)
2) Acknowledgement from the drawee that he has received
the
goods in good condition
3) Rate of Interest 11.50%. Collateral Security 125%
* Bills of exchange with tenors up to 90 days
Purchase
Bill Discounting
The facility is extended to well-established Corporates
for procuring
raw materials. The bills of exchange, drawn on the corporate
by their
suppliers, and duly accepted by the corporate (to whom
the facility
is extended), are discounted by APIDC and the payment
is made
directly to the supplier's bank.
Other
documents required would be the same as in sale bill
discounting.
The
Bank extends both the above facilities after satisfying
itself
about the financials of both the drawer and drawee of
the bills.
Rate of Interest 11.50%. Collateral Security 125%
Tenor
: 90 days
B.
L/C Backed Bills Discounting.
We
arrange discounting of L/Cs opened by Nationalised Banks
Under
Letter of Credit Backed Bills Discounting the drawee
arranges
to establish a LC in favour of APIDC and the bills are
discounted and
proceeds are paid to drawer after deducting the commission.
On due
date the Bank, which established the LC makes the payment
to
APIDC.
Rate of Interest 10.50% Collateral Security Nil
Tenor:
90 days
C.
Bills Rediscounting.
APIDC
also offers Bills Rediscounting of bills discounted
by NBFC's.
The Product is designed to provide a convenient short-term
investment avenue for investors.
Tenor:
90 days
Terms
and Conditions.
*
The company should be a profitable company for the past
2 years.
* The company has to provide 125% of the discounted
bill value as
collateral security.
Rate of Interest 11.50%. Collateral Security 125%
* The company should provide the following as applicable.
1) Audited balance sheets for 3 years, if the audited
not available
provisional duly certified may be enclosed.
2) Current years provisional working results for the
period.
3) Certified copies of the Memorandum and Articles of
Association.
4) In case of SSI units SSI Registration certificate.
5) Copies of the title deeds for the collateral security.
6) Valuation Certificate.
7) Regarding Industry performance, enclose copies of
published
material if any.
8) Working capital sanction given by bank.
9) If enhancement of working capital limits is under
consideration,
enclose copy of the CMA data submitted to the bank.
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