Fund Based Working Capital Finance: Cash Credit: It is a type of Fund based loan which is short term in nature and fixed in the limit. It is usually extended by our bank to a company to meet its working capital requirements. It is provided as a running facility only like current account. WCDL: It is a short term Loan for a period of 180 days given as a part of working capital facility. Loan can be repaid in bullet repayment or amortization basis. Features: ✔Borrower's external rating should be BBB or above. ✔Facility to be secured by Stock and Book Debts. Age of Book Debts should be below 90 days. ✔Collateral security is required. ✔Company needs to provide CMA data along with three years financial statement. ✔The Loan is for a period of 12 months. ✔The sanction of the credit facility is at the sole discretion of the Bank. ✔Kindly contact nearest IOB Branch for more details and your requirement. Cash Credit Against Deposit: It is a fund based short term loan given to business houses and corporates for meeting short term capital requirements. It is a running account facility like current account and the loan is given against own Fixed Deposit account with IOB. Kindly contact nearest IOB Branch for more details and your requirement. Demand Loan Against Deposit: It is a fund based short term loan given to business houses and corporates for meeting business purpose requirements. The loan is given against own Fixed Deposit account with IOB. Repayment of the loan to be done in one bullet repayment at the end of the loan tenure. Kindly contact nearest IOB Branch for more details and your requirement. Miscellaneous Cash Credit: To encourage trade credit to those who cannot submit financial statements and to those, who find it difficult to submit monthly stock statement or where monitoring/inspecting of current assets are difficult on an ongoing basis, Bank is extending credit against immovable properties to the extent of 50% of the forced sale value of the property. Kindly contact nearest IOB Branch for more details and your requirement. Bridge Loan: Bank will sanction bridge loans to companies (other than Non-Banking Financial Companies and Residuary Non-Banking Financial Companies) for a period not exceeding one year against expected equity flows/issues. Kindly contact nearest IOB Branch for more details and your requirement. Line of Credit:
The Bank shall consider Line of Credit for speedy delivery of credit to reputed corporate/Public sector undertakings. Kindly contact nearest IOB Branch for more details and your requirement.
Short Term Loans:
Corporates shall be looking for loans from Banks and Financial Institutions for
general corporate purposes. In order to meet their short term requirements short term loans are granted by the Banks.
Eligibility:
Constitution: Listed companies, Societies, Government Departments, Institutions, Statutory Corporations, Unlisted Corporates with . a record of growth in sales and profit for the last 3 years.
Rating: Rating should be at least not less than 1085 (Internal rating) or BBB (External rating).
Asset Status: The account should not have been classified as NPA during last three years.
Purpose:
1.To meet short term requirements of Corporates.
2.To meet Working Capital requirements.
3.For project related expenses.
4.To repay/swap high cost debts.
5.To meet on-going capital expenditure.
6.For acquisition of commercial assets.
7.Short term cash flow mismatches.
8.Any other business related purposes.
9.Other general corporate purposes.
10. Not for investment in capital markets.
11. Not for any speculative purposes.
12. Not for any diversion of funds for any unapproved purposes.
13. Not for investing in unrelated real estate.
14. Not for investment in Associate firms.
15. Not for any purpose restricted by RBI/Govt. guidelines.
Repayment Period:
I.For fully secured advances, the repayment period shall be maximum 12 months.
II.For partially secured or not fully secured short term loans, the repayment period shall be maximum six months; however, if collateral security has been created within this period the loan may be extended for another six months.
Kindly contact nearest IOB Branch for more details and your requirement.
Non-Fund Based Working Capital Finance:
Bank shall provide NFB facilities to its customers based on the past performance and evaluation of the future need for the same as per borrower's business plan. Non Fund Based facilities are sanctioned by way of Letters of Guarantee, Letters of Credit, Standby Letters of Credit for imports· and domestic procurements, Trade Credits etc. Kindly contact nearest IOB Branch for more details and your requirement.
Letter of Credit
Letter of Credit is established on behalf of the customers for working capital needs such as procurement of indigenous and imported raw materials, etc. LCs are also established for capital expenditure of the constituents. The LCs are issued on Document against Payment (DP) or Document against Acceptance (DA) terms based on the requirements of the borrowers.
Features:
✔Bank shall ensure that the applicant has adequate resources to -rneet the commitments under the LC on the respective due date and wherever necessary, amortization schedule is stipulated.
✔Margin as per norms to be provided.
Letter of Guarantee
Guarantees shall be issued by the Bank on behalf of customers only. Various Guarantees issued by the Bank depend upon the purpose (such as Performance, Bid Bond, Security deposit, Advance Payment, Shipping Guarantee etc.). Guarantees are issued on behalf of the customers, in favour of the beneficiary for fulfillment of commitments or for due performance of a contract or for due payment of monetary obligations by the customer.
Features:
✔Customer should have necessary experience. capacity and means to perform the obligations under the contract.
✔Adequate margin as per norms to be provided. In cases, customer can also provide 100% margin in form of FDR/ Cash margin.
STANDBY LETTER Of CREDIT(SBLC):
Standby Letters of Credit shall be issued in connection with payment of margin money in respect of approved commodity hedging transaction subject to terms and conditions as stipulated by the Reserve Bank of India from time to time. Standby letters of credit favouring overseas lenders for purpose of such as raising buyer's credit/ to facilitate wholly owned subsidiaries/ Joint Venture (JV) abroad owned by our customers shall be issued as per RBI guidelines issued from time to time. SBLC shall not be issued for purposes which are prohibited by RBI guidelines.
Solvency Certificate:
Solvency Certificate is required for providing to government authorities, other corporates in business deals, bids, etc. providing information about the financial stability of an individual/entity. Our Bank provides the same to its clients based on internal guidelines.
Project Financing:
Project finance is the funding (financing) of long-term infrastructure, industrial projects, and public services using a non-recourse or limited recourse financial structure. The same is given in form of Term Loan and Capex LC. Term loans are extended for acquisition of fixed assets like land, building, plant and machinery, vehicles, furniture and fixtures.
Features:
✔External Rating should be more than BBB.
✔Total Tenure of Term Loan will be for a Maximum period of 15 years.
✔Debt-Equity Ratio should be 3:1.
✔Adequate collateral security to be provided.
✔Refinance of project finance also dene by Bank.
Kindly contact nearest IOB Branch for more details and your requirement.
Bills Financing
Our Bank Purchase and Discount Inland bills backed/ not backed by LC.
Features:
✔Bills financing facilities will be treated as a part of working capital finance
✔Rediscounting of usance bills discounted by other banks available.
✔Bill purchase / discounting facility may be extended to non-constituent beneficiary of an LC in case negotiation restricted to our Bank.
✔Discounting of Bills under LC with "Without Recourse" Clause.
Kindly contact nearest IOB Branch for more details and your requirement.
Gold (Metal) Loans:
Our Bank is a nominated Bank by RBI to extend Gold (Metal) loans. Tenure of the loan should be equal to the Working Capital Cycle of the unit subject to maximum of 180 days for domestic manufacturers and 270 days for exporters.
Features:
✔Loan will be given in form of Gold Metals which has to be repaid in the form of metal or equivalent Amount on maturity.
✔Adequate margin to be maintained.
✔Gold (metal) loan will also be extended to domestic jewellery manufacturers who are customers of other scheduled commercial Banks against their Standby LC (SBLC) I Bank Guarantee [BG).
✔SBLC/BG Facility for availing Gold Metal Loan with other nominated Bank is also available.
Kindly contact nearest IOB Branch for more details and your requirement.
Liquirent Advances:
Liquirent Loans are granted to Lessor(s) against the rent receivables (Securitisation of Rent receivables of on the building property let out on lease by way of term loans only.
Features:
✔Loan to customers who have leased their properties to credit worthy establishments like reputed companies/ Public sector undertakings/ Established Commercial Organizations/ Multinational Companies/ Banks and other reputed institutions.
✔Tenor of loan upto 180 months.
✔Top-up loan available.
Kindly contact nearest IOB Branch for more details and your requirement.
Takeover of Accounts
Our bank extends credit facilities to borrowers for closing accounts with other banks or takeover share of other banks in a consortium as per requirement of the borrower subject to fulfillment of Bank's internal guidelines.
Kindly contact nearest IOB Branch for more details and your requirement.
FOREIGN CURRENCY LOANS:
Working Capital Loan in Foreign Currency (WCFC)/ Foreign Currency Term Loan (FCTL):
Bank shall extend Foreign Currency Loans subject to availability of foreign currency funds as under:
I.Working Capital Loan in Foreign currency (WCFC) to meet the working capital needs of the borrowers towards cost of raw materials acquired locally or imported from abroad.
II.Foreign Currency Term Loans (FCTL) for capital expenditure.
III.Packing Credit / Bills purchase and discounting in Foreign Currency towards export credit as working capital.
Foreign Currency Loans Against FCNR(B) Deposits:
Bank shall extend Foreign Currency Loan against FCNR (B) deposits with 10% margin on face value of deposits. Such loans shall be given to the deposit holders or third parties.
Kindly contact nearest IOB Branch for more details and your requirement.
FAQs
What is the difference between personal and corporate Internet banking? ›
As per Bank's Internet Banking policy, Retail Internet Banking is issued to Customers who are Individuals. Corporate Internet Banking is issued to customers that are non-individuals like Proprietorship, Private limited company, Public Limited Company, Trusts, HUF etc.
What is online banking also known as 2 answers? ›Online banking allows you to conduct financial transactions via the Internet. Online banking is also known as Internet banking or web banking.
Why won t my US bank app work? ›Clear the cache and cookies. Close the app, then reopen it. Check your device to see if the app has a pending update. Uninstall, then reinstall it from your app store or text GET APP to 872265 to receive a download link.
Why does my online banking say unavailable? ›Why? The error message “Account Temporarily Unavailable” means there is a connection issue, or the site has been taken down for maintenance. Normally if you close the site and reopen it the message will go away, and you can continue with your transaction.
What is the difference between corporate account and individual account? ›What is the difference between a corporate account and an individual account? A corporate account represents a corporate entity rather than an individual and allows users to fund their accounts with a corporate bank account.
What is the difference between corporate and banking? ›Regular retail banks provide financial services to individuals but are not equipped to service businesses. Corporate banking provides businesses financial services like account holding, loans, capital, vendor management, and more.
What are the three types of internet banking explain? ›Informational Internet Banking includes information on various products and services offered by banks. Communicative Internet Banking allows you to perform simple transactions like applying for loans, checking balances, etc. Transactional Internet Banking enables you to transfer funds and make payments.
What is the difference between banking and online banking? ›For customers, internet banking means they can carry out regular banking transactions with fewer visits to bank branches. Digital banking, on the other hand, includes personalisation methods, which result in mapping customer preferences and features like chatbots and online support.
What are the two main types of banking? ›Commercial banks: Commercial banks are the financial organizations that receive deposits, provide security to the account, and give loans. Retail banks: A retail bank is a bank that only lends help to small businesses and companies and consumers.
What is going on with Bank of America? ›User reports indicate no current problems at Bank of America. Bank of America offers retail bank services to individuals and businesses, including checking, savings, credit cards, mortgages and loans.
Why is my mobile banking app blocked? ›
If you have entered an incorrect mobile banking passcode too many times, the app will have become locked. To reset your passcode open up the app and select 'Forgotten passcode'. This will take you through re-registration and let you choose a new passcode. To do this, you will need your Digital Banking login details.
Why can't i connect to my bank account? ›Your bank login information is incorrect. Your bank requires multi-factor authentication (MFA) or has updated their authentication requirements. Your bank's connection is down. Your bank is not supported.
Why won't any bank let me open an account online? ›The primary reasons people can't open a bank account are negative items on a ChexSystems or Early Warning Services report, errors on the reports or bad credit. If your bank account application is denied, find out why.
How do I enable online net banking? ›- Go to the bank's website.
- Click on the 'login' or 'register' button.
- Enter required account information, such as the account number, mobile number, branch code, and CIF number.
- Click the 'submit' button.
- Verify your identity by entering the OTP sent to your registered mobile number.
- Visit the NetBanking registration page.
- Enter your customer ID and confirm your mobile number to generate an OTP.
- Enter the OTP.
- Select your debit card and enter details.
- Set your IPIN.
- Login to NetBanking using your customer ID and new IPIN.
A corporate account can help businesses change funds. If a company experiences periods of profit, it can store the funds securely in the account for holding or investing purposes. If a company experiences a loss or temporarily high expenses, it can use the funds to pay for business expenses.
Can you transfer money from a corporate account to a personal account? ›At a minimum, pay yourself quarterly to stay on top of your tax obligations. For a draw, you can just write yourself a check or electronically transfer funds from your business account to your personal one. A salary is more complicated because you have to withhold payroll and income taxes.
Who owns a corporate bank account? ›A corporate bank account is a business bank account. Technically, the owner of the corporate bank account is the corporation, since it is its own legal entity. Conversely, a sole proprietor, although not a corporation, is a business account in which the owner is the sole proprietor.
What is considered corporate banking? ›Corporate banking is a financial area that involves loaning money and other financial services to businesses. Rather than small businesses or startups, corporate banking serves enterprise corporations while business and investment banks might help smaller businesses grow.
What is the opposite of corporate banking? ›Retail banking is a type of financial service that is available to the general public. Consumer banking, also known as personal banking, allows customers to manage their money by providing them with basic banking services, credit, and financial counselling.
What are the 3 most important banking services? ›
The 5 most important banking services are checking and savings accounts, loan and mortgage services, wealth management, providing Credit and Debit Cards, Overdraft services.
What are 3 advantages of internet banking? ›- Access your account 24/7. One of the biggest advantages of online banking is that you can access your account 24/7, wherever you are. ...
- Bank on your phone or tablet. ...
- It's quick and easy. ...
- Keep on top of your finances. ...
- Pay bills and make payments. ...
- Transfer money between accounts.
E-banking is a broad term that includes everything from internet and mobile banking to NEFT and IMPS transfers.
Why would a person use online banking? ›Today's online banking customers enjoy instant access from their computer or mobile device to a full range of services, allowing you to: Check balances on accounts and view records of your transactions. Pay bills automatically each month with easy-to-set-up auto payment. Transfer funds between accounts.
What is internet and online banking? ›Banking online means accessing your bank account and carrying out financial transactions through the internet on your smartphone, tablet or computer. It's quick, usually free and allows you to do tasks, such as paying bills and transferring money, without having to visit or call your bank.
What are the 2 basic accounts that most banks offer? ›- Checking account: A checking account offers easy access to your money for your daily transactional needs and helps keep your cash secure. ...
- Savings account: A savings account allows you to accumulate interest on funds you've saved for future needs.
The 4 different types of banks are Central Bank, Commercial Bank, Cooperative Banks, Regional Rural Banks. You can read about the Types of Banks in India – Category and Functions of Banks in India in the given link.
What is the most common type of banking? ›What is the most common type of bank? Retail banks are the most common banks for both individuals and smaller businesses as they provide a full range of financial services.
Is Wells Fargo going under? ›Based on the latest financial disclosure, Wells Fargo has a Probability Of Bankruptcy of 1.0%. This is 98.0% lower than that of the Financial Services sector and 98.27% lower than that of the Banks - Global industry. The probability of bankruptcy for all Mexico stocks is 97.49% higher than that of the company.
Who owns Zelle? ›Zelle is owned and operated by Early Warning Services, LLC, which is co-owned by seven of the nation's big banks. The payment app launched in 2017 as competition in the peer-to-peer space began heating up with PayPal's Venmo and Block's Cash App.
Why is Bank of America closing my account? ›
A bank can close your account without notice for any reason. But most of the time, banks close accounts when the account holder has violated terms in the account agreement. Account agreement violations could include inactivity for a prolonged period of time, repeated overdrafts or illegal activity.
Can a bank lock you out of your account? ›Banks may freeze bank accounts if they suspect illegal activity such as money laundering, terrorist financing, or writing bad checks. Creditors can seek judgment against you, which can lead a bank to freeze your account. The government can request an account freeze for any unpaid taxes or student loans.
What is remote PIN? ›What is a Remote PIN? Your Remote PIN is between 5 and 6 digits long, and you use it to sign in on our banking app and authorise transactions. It's extremely important to keep your PIN secret, and never share it with anyone.
Can phone banking apps be hacked? ›Hackers use a type of malware called “keyloggers” that record all the information you type into your phone — including bank accounts and passwords. If you download an app that's infected with a keylogger, hackers will be able to break into your banking app. How common is this type of cyber attack?
Which banks are in trouble? ›| Bank Name | City | State |
|---|---|---|
| First Republic Bank | San Francisco | CA |
| Signature Bank | New York | NY |
| Silicon Valley Bank | Santa Clara | CA |
When your account is blocked it means you can't make any purchases using your debit card. It also means any direct debits or standing orders will not be processed. Access to your funds will also be blocked therefore, you can't withdraw cash out at ATM or Post Office and you can't make any payment transfers.
How do I unlock my bank account? ›How to unlock your account. If you need to “unlock” your account, you'll need to contact your bank as soon as possible. If your account has been locked because of a security issue, you might find the only way to do this is by phoning your bank's emergency assistance or help line.
What to do if banks won't let you open an account? ›- Ask the bank to reconsider. ...
- Get a copy of your report. ...
- Check your report for errors. ...
- Clean up your report. ...
- Look into getting a 'second-chance account' ...
- When you're ready to apply for a traditional checking or savings account.
How Long Can a Bank Freeze an Account For? There is no set timeline that banks have before they have to unfreeze an account. Generally, for simpler situations or misunderstandings the freeze can last for 7-10 days.
How do I get a bank account after being blacklisted? ›- Request Consumer Disclosure Report. ...
- Report Any Discrepancies. ...
- Dispute Any Errors Found. ...
- Pay Off Outstanding Debts and Fees.
How do I know if my account has net banking? ›
You need to check with the bank on that.) If your account has a Netbanking facility, you will be given an Internet Banking Kit. This Kit will contain your Netbanking Username and Password. If you did not receive the Kit while opening the account, you can submit a request at the bank branch to get one.
Is debit card necessary for net banking? ›Answer and Explanation: A person can join the net banking without the ATM or debit card by taking the help of a financial institution. A person needs to visit the bank and need to request them for such facility they will...
Why is my online banking unavailable? ›If you get a Network Unavailable error, then it's likely to be a problem with your phone or your internet connection. Often it can mean that you are out of network coverage or have a poor signal. Several things can cause network timeouts such as: high usage of the mobile network.
Why is my bank not active? ›When you make no transaction in your bank account for 12 months, the account gets classified as inactive. When you make no transaction in your bank account for 24 months, the account gets classified as inoperative or dormant by the bank.
What is corporate Internet Banking? ›What is Corporate Internet Banking? Corporate Internet Banking (CINB) of State Bank of India is the channel which facilitates Corporate Customers (any non- individual customers such as firms, companies, trusts, partnerships, proprietorship concerns etc.)
What are the benefits of corporate Internet Banking? ›You can transfer funds between your own accounts, other Commercial Bank Accounts, other local or overseas bank accounts seamlessly with a few clicks.
Is there a difference between a personal and business bank account? ›What's the difference between business and personal checking accounts? A business checking account helps business owners hold and manage money made within a company. Personal checking accounts help individuals hold and manage their personal funds.
What are the three types of Internet Banking explain? ›Informational Internet Banking includes information on various products and services offered by banks. Communicative Internet Banking allows you to perform simple transactions like applying for loans, checking balances, etc. Transactional Internet Banking enables you to transfer funds and make payments.
What type of access can be offered in corporate Internet banking? ›This includes loans, deposits and linked accounts like channel partner, vendor and dealer accounts. Intra and Inter Bank fund transfer using NEFT and RTGS. Bulk payments. Online Tax payment.
What are the 5 most important banking services? ›The 5 most important banking services are checking and savings accounts, loan and mortgage services, wealth management, providing Credit and Debit Cards, Overdraft services. You can read about the Types of Banks in India – Category and Functions of Banks in India in the given link.
What is the meaning of personal banking? ›
Personal banking refers to all the services banks design and offer to individual consumers rather than businesses. These services include checking and savings accounts, credit and debit cards, certificates of deposit (CDs), loans, and more.
Why did you choose corporate banking? ›Many professionals end up staying in corporate banking for the long term because it offers a nice work/life balance, reasonable advancement opportunities, and high pay at the mid-to-top levels.
What is corporate banking and its importance? ›Corporate banking is a financial area that involves loaning money and other financial services to businesses. Rather than small businesses or startups, corporate banking serves enterprise corporations while business and investment banks might help smaller businesses grow.
What are the advantages and disadvantages of Internet banking? ›- Internet banking makes fund transfer a time and cost-efficient option.
- You can monitor your account balances 24x7.
- You can quickly open fixed or recurring deposits.
- You can pay various utility bills from the comfort of your home.
Although having two bank accounts appears inconvenient, you shouldn't use a personal account for your business finances primarily because it can affect your legal liability. In fact, one of the first steps to owning a business should be opening a business bank account, in addition to a personal bank account.
Why should you separate your personal and business bank accounts? ›Separating your business and personal finances may help you maintain a clearer picture of your company's cash flow and financial health apart from your personal assets and liabilities. “A separate business account provides you the ability to manage your business in one central location,” Wong says.
Can you use the same bank for personal and business? ›As the owner of a sole proprietorship, you have the choice of opening multiple bank accounts. However, the law also allows you to use the same bank account for your personal and business finances. You may even use your personal checking account, as long as it is under the same name.
What is the difference between Internet banking and banking? ›Electronic banking or E-banking is a broad category of accessing banking services via electronic means, whereas Internet banking is a part or type of electronic banking. It is also known as electronic funds transfer (EFT) and uses electronic means to transfer funds directly from one account to another.
What is the difference between virtual banking and Internet banking? ›Activities. Online Banking is a tool to replace some of the already-existing banking functions, making them more accessible via the internet. Conversely, Digital Banking aims at making the entire banking process virtual by reducing the dependence on brick-and-mortar banks.