J&K Bank Supply Chain Finance Scheme (“SCFS”)

To provide financial assistance to Authorized Dealers/ Distributors/Channel Partners of Reputed Manufacturing Companies/ Suppliers/ Corporates for procurement of inventory/stocks from such RMC/Supplier/Corporate.

• Reputed Manufacturing Companies (RMC)/ Suppliers/ Corporates also known as Principal or Anchor (Top Level)
• Dealers/Distributors/Channel Partners also known as Spokes (Bottom Level)
• Bank (Financing Agent)

The Quantum of Finance is as under:

Minimum: Rs. 25.00 Lakhs Maximum: Need Based (No Limit)

 

Finance under the scheme shall be available only to those Dealers/Distributors/Channel Partners identified and recommended by Anchor & acceptable to the Bank.

From Anchor: Nil

From Spokes (Spokes / Distributors / Channel Partners): 
Primary Security:-
Hypothecation of Stocks/Goods financed by the Bank & Receivables thereof.

Collateral Security: Minimum 25% of the loan amount

• Note :Tangible Collateral security shall be in the form of residential or commercial property OR Cash collateral in the form of Term Deposits.
• Realizable Value of property/principal amount of term deposits shall be considered while accepting collateral.
• Personal Guarantee of the Promoter / Director/ Partner / Proprietor/ Owners of property (ies) shall be obtained. 
   

Loan processing charges, commitment charges, inspection charges etc. shall be recovered from the borrower as per Service Charges Schedule of the Bank as amended from time to time. Other charges shall be borne by the borrower as per the actual expenses incurred.

Borrower/s shall make repayment of invoices financed by the Bank within the agreed credit period cum grace period or as soon as the sales proceeds are realized whichever is earlier. Sales proceeds shall be credited to the “SCFS” Account immediately on realization. If the invoices are not paid within the agreed credit period and grace period, no fresh disbursements from the account shall be allowed.

The limit shall be valid for a period of 12 months from the date of sanction and shall be subject to annual review thereafter. The review may result in Continuation/ Enhancement/ Reduction/ Withdrawal of the Limit.

RLLR+0.50%

Note:

• Special interest rate discount of 25 bps shall be extended to borrowers who avail this facility from our bank till 31.12.2023. Further, this special concession shall be valid till continuation of facility or revision of interest rate structure under this scheme, whichever earlier.
• All the loan applications shall be rated on banks internal rating module, however, the pricing shall not be linked to rating grade.

Click here for rate of Interest

i. Stocks procured under the facility shall be comprehensively insured for full market value against all risks including transit risks from the point of origin to the point of destination by the Borrower/s with usual Bank clause at Borrowers’ Cost. 
ii. Property (ies) mortgaged to the Bank shall be comprehensively insured against all risks by the Borrower/s with usual Bank clause at Borrowers’ Cost. 

 

Nil-100% financing of invoices.

Working Capital Finance