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Buyers Credit
A. Short Term:
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Extended to Indian corporate to facilitate import of raw materials, machinery, spare parts etc.
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For short term upto 180
days generally, a fine rate of 50 basis points above
LIBOR is levied. Rate negotiable for higher volumes.
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Extended in
USD, JPY and Euro.
B. Long
Term :
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Extended for import of capital goods for large value projects.
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Maturity upto 7 years inclusive of draw-down and gestation periods.
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Interest rate, commitment fee, management fee quoted as fine as possible.
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ECA backed two-tier buyer’s credit also extended
in association with Japan Bank for International Co-operation - a longer maturity period in such cases.
C. Formalities in
brief:
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Indicative quote given by
SBI, Tokyo/ Osaka on request.
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Permission from Reserve Bank of India - a
pre-requisite, wherever necessary..
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A letter of comfort from a domestic branch of
SBI or a guarantee from a public sector bank / an acceptable private sector bank in India to be obtained.
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For long term buyer’s credit, due-diligence for project viability by a domestic branch of SBI or an acceptable bank or
financial institution in India to be completed.
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