CORPORATE AND SME FUNDING

By:-
Sahil Mehta
WHAT IS CORPORATE & SME FUNDING
Small and mid-size enterprises (SMEs) are businesses that
maintain revenues, assets or a number of employees below a certain
threshold. Certain size criteria must be met and occasionally the industry
in which the company operates in is taken into account as well.
 SME Funding is the funding of small and medium-sized enterprises, and
represents a major function of the general business finance market – in
which capital for different types of firms are supplied, acquired, and
costed or priced.
 WHAT IS LOAN SYNDICATION

Loan syndication is the process of involving a group of lenders in funding

various portions of a loan for a single borrower. Loan syndication most often
occurs when a borrower requires an amount too large for a single lender to
provide or when the loan is outside the scope of a lender's risk-exposure
levels. Thus, multiple lenders form a syndicate to provide the borrower
with the requested capital.
 BANKS IN INDIA

Sl.No Banks in India Phone-no

1 Bank of Baroda 1800 22 3344
2 Bank of India 033 2243 6531
3 Bank of Maharashtra  033 2280 4200
4 Canara Bank 033 2283 1505
5 Central Bank of India 1800 22 1911
6 Corporation Bank 1800 425 2407
7 Dena Bank 18002336427
8 Indian Bank  044 – 2813 4126
9 Indian Overseas Bank +91 044-28524212
10 IDBI Bank 1800 200 1947
11 Oriental Bank of Commerce 0124-4126371
12 Punjab & Sindh Bank  25718308
13 Punjab National Bank +91(22)26532745
14 State Bank of India 1800 11 2211
15 Syndicate Bank 22267548
16 UCO Bank 033 4455 7854
17 Union Bank of India 1800 22 22 44
18 United Bank of India 1800 345 0345
19 Vijaya Bank 1800 425 9992
20 Axis Bank 1860 419 5555
21 Bandhan Bank  033 6609 0909
22 Catholic Syrian Bank 0484 645 1649
23 City Union Bank 033 2210 7140
24 DCB Bank 033 6627 2617
25 Dhanlaxmi Bank 033 2281 5100
26 Federal Bank 1800 - 420 - 1199
27 HDFC Bank 1800-266-4332
28 ICICI Bank 1860 120 7777
29 IDFC Bank 1800 419 4332
30 IndusInd Bank 022 4406 6666
31 Jammu and Kashmir Bank 033 2248 5457
32 Karnataka Bank 033 2210 3777
33 Karur Vysya Bank 1860 200 1916
34 Kotak Mahindra Bank 1860 266 2666
35 Lakshmi Vilas Bank 033 2248 0291
36 Nainital Bank 05942 236313
37 RBL Bank 033 4033 0100
38 South Indian Bank 0487 242 0020
39 Tamilnad Mercantile Bank 033 2242 8044
40 YES Bank 1800 1200
41 A U Small Finance Bank 1800 1200 1200
42 Equitas Small Finance Bank 044 4299 5000
43 Ujjivan Small Finance Bank 1800 208 2121
44 Utkarsh Small Finance Bank 083540 15482
45 Janalakshmi Small Finance Bank 1800 4200
46 Capital Lab Small Finance Bank 0181-5052222
47 Disha Small Finance Bank 1800 2080
48 ESAF Small Finance Bank 0487 7123456
49 RGVN Small Finance Bank 0361 246 4624
50 Suryoday Small Finance Bank  022-40435800
51 Coastal Local Area Bank Limited 91-866-2494425
 Krishna Bhima Samruddhi Local Area Bank
52 Limited 040-23113232
53 Subhadra Local Area Bank Limited 2652585
54 India Post Payments Bank 033 2571 9263
55 Fino Payment Bank 079805 76044
56 Airtel Payments Bank 077978 46600
57 Paytm Payments Bank 0120-4818901
58 Australia and New Zealand Banking Group 1800 801 485
59 Commonwealth Bank of Australia 000 800 610 3122
60 National Australia Bank 022 6198 8200
61 Westpac Banking Corporation +91 22 6627 1000 or
62 Bank of Bahrain and Kuwait 022 4334 9200
63 AB Bank 022 2200 5392
64 Sonali Bank 033 2227 2383
65 Antwerp Diamond Bank 91-22-61322900
66 Bank of Nova Scotia 000-800-1008-747
Industrial & Commercial Bank of
67 China 022 7111 0300
68 BNP Paribas 022 6783 1000
69 Credit Agricole 022-67371002
70 Societe Generale 022-66309500
71 Deutsche Bank +91 22 7180 4999
72 Mizuho Corporate Bank 022 2288 6638
73 Sumitomo Mitsui Banking 011 4768 9111
74 Bank of Tokyo-Mitsubishi 91-22-66693000
75 State Bank of Mauritius 044 2811 0943
76 Rabobank (91) 22 2481 7700
77 Doha bank 022 3394 1102
78 Sberbank 011 4004 8888
79 VTB 011 6622 1000
80 HSBC Bank Oman 1800 103 4722
81 DBS Bank United Overseas Bank 033 6621 8888
82 FirstRand Bank 022 6625 8600
83 Shinhan Bank 61992000
84 Woori Bank 022 6263 8100
85 Bank of Ceylon 044 2819 0972
86 Credit Suisse 022 6607 3000
87 UBS AG 022 6155 6400
88 Chinatrust Commercial Bank  
89 Krung Thai Bank 022-22873741
90 Abu Dhabi Commercial Bank 022 3953 4100
91 Mashreq Bank 022 6632 7200
92 HSBC 1800 103 4722
93 Barclays Bank 011 4657 9000
94 Standard Chartered Bank 011 – 66014444
95 American Express 1800 528 4800
96 Bank of America 022 6632 3000
97 Citibank 033 4400 3538
98 J.P. Morgan Chase Bank 022 6157 3000
99 Raiffeisen Zentralbank +91 22 6630 1700
100 KBC Bank  
101 Royal Bank of Canada (306) 695-2278
102 Toronto Dominion Bank (519)582-0510
103 Credit Industriel et Commercial 91-11-41680606
104 Natixis 022 6103 2222
105 Commerzbank 022 6177 5100
106 DZ Bank 033 2262 7324
107 kfw ipex-bank 2267108808
108 Landesbank Baden 022 2281 9941
109 Banca Monte dei Paschi di Siena +91 22 2202 4478
110 Banca Popolare di Milano +91 22 4601341.
111 Intesa Sanpaolo +91 22 22871400.
112 UBI Banca 91 22 22023601
113 CIMB 1 300 885 300
114 Everest Bank 011 2371 0327
115 DNB ASA +91 22 61444200
116 Caixa Geral de Depositos 022 2281 9457
117 Gazprombank  +91 11 472 22 400
118 Promsvyazbank +91 11 261 52286
119 Vnesheconombank 91-11-24121282
120 Industrial Bank of Korea 011 4076 8000
121 Kookmin Bank 91-124-453-2222
122 Korea Exchange Bank 044 4905 6363
123 Banco de Sabadell 011 2335 0202
124 Banco Bilbao Vizcaya Argentaria +91 22 66308731
125 Caixabank 011 4512 3706
126 Hatton National Bank 044 2821 6637
127 Skandinaviska Enskilda Banken 771365365
128 Zurich Cantonal Bank 91-22-66100111
129 Bank of Taiwan  
130 Mega International Commercial Bank  
131 Bank Asya  
132 Emirates NBD +91 22 6153 2300
133 First Gulf Bank +91 22 33311111
134 Duncan Lawrie  
135 Bank of New York Mellon  
136 Wells Fargo Bank  
137 Development Bank of Singapore  
138 Andhra Pradesh Grameena Vikas Bank 0870-2577769
139 Chaitanya Godavari Grameena Bank 8632261128
140 Saptagiri Grameena Bank 085722 32566
141 Assam Gramin Vikash Bank 0361 213 1607
142 Langpi Dehangi Rural Bank 3671272290
143 Arunachal Pradesh Rural Bank 0360-2246017
144 Uttar Bihar Gramin Bank 074882 73927
145 Dakshin Bihar Gramin Bank 1800 180 7777
146 Chhattisgarh Rajya Gramin Bank 077142 88840
147 Dena Gujarat Gramin Bank 079 – 23247325
148 Baroda Gujarat Gramin Bank  02642-247991 
149 Saurashtra Gramin Bank 0281 248 2421
150 Sarva Haryana Gramin Bank 01262-243111
151 Himachal Pradesh Gramin Bank 01905 227 500
152 Jharkhand Gramin Bank 0651 220 2120
153 Vananchal Gramin Bank 06434 222 401
154 Jammu And Kashmir Grameen Bank 7051510179
155 Ellaquai Dehati Bank 1942438713
156 Kaveri Grameena Bank 1800 425 03232
157 Karnataka Vikas Grameena Bank 0836 244 8626
158 Pragathi Krishna Gramin Bank 083922 36406
159 Kerala Gramin Bank 0483 273 3509
160 Narmada Jhabua Gramin Bank 0731-2549053
161 Central Madhya Pradesh Gramin Bank 07162 245 241
162 Madhyanchal Gramin Bank 075822 36599
163 Maharashtra Gramin Bank 02482 232 529
164 Vidarbha Kokan Gramin Bank 7122224319
165 Manipur Rural Bank 0385 245 1590
166 Meghalaya Rural Bank 0364 250 4311
167 Mizoram Rural Bank 0389 234 6380
168 Nagaland Rural Bank 18004253800
169 Odisha Gramya Bank 0674 235 3031
170 Utkal Grameen Bank 06652 232 285
171 Punjab Gramin Bank 0182 250 9555
172 Malwa Gramin Bank 1672234643
173 Sutlej Gramin Bank 0164 221 4138
174 Puduvai Bharathiar Grama Bank  0413-222-7851
Baroda Rajasthan Kshetriya Gramin
175 Bank 0145 264 2621
176 Marudhara Rajasthan Gramin Bank +91 291 259 3100
177 Pandyan Grama Bank 04562 252731
178 Pallavan Grama Bank 4146221736
179 Telangana Grameena Bank 18004251191
180 Tripura Gramin Bank 1800 103 3470
181 Sarva UP Gramin Bank 18001807777
182 Prathama Bank 5912455176
183 Allahabad UP Gramin Bank 05192 221 096
184 Baroda UP Gramin Bank 081749 65994
185 Gramin Bank Of Aryavrat 91-7317799391
186 Kashi Gomti Samyukt Gramin Bank 022-25710275
187 Purvanchal Bank 91-551-2230210
188 Uttarakhand Gramin Bank 0135-2710660
189 Bangiya Gramin Vikash Bank 3242254550
190 Paschim Banga Gramin Bank 033 2667 6078
191 Uttarbanga Kshetriya Gramin Bank 03582 263 517
 Andaman and Nicobar State Co-operative Bank
192 Ltd 03192 233 395
193 Andhra Pradesh State Co-operative Bank Ltd. 040-23443818
 Arunachal Pradesh State co-operative Apex Bank
194 Ltd. 0360-22612008
195  Assam Co-operative Apex Bank Ltd. 0361 2545092
196 Bihar State Co-operative Bank Ltd. 6122300262
197 Chandigarh State Co-operative Bank Ltd. 0172 502 5328
198 Delhi State Co-operative Bank Ltd. 033 2243 7816
199 Goa State Co-operative Bank Ltd. 0832 246 2117
200 Gujarat State Co-operative Bank Ltd. 079 2745 9000
201 Haryana State Co-opertive Apex Bank Ltd. 0172 271 4520
202 Himachal Pradesh State Co-operative Bank Ltd. 0177 280 4494
203 Jammu and Kashmir State Co-operative Bank Ltd. 033 2243 7816
204 Karnataka State Co-operative Apex Bank Ltd. 080 2297 6678
205 Kerala State Co-operative Bank Ltd. 0471-2547224
  Madhya Pradesh Rajya Sahakari Bank
206 Maryadit 0755–2674701
207 Maharashtra State Co-operative Bank Ltd. 22876020
208  Manipur State Co-operative Bank Ltd. 0385 245 1540
209  Meghalaya Co-operative Apex Bank Ltd. 0364-2224166
210 Mizoram Co-operative Apex Bank Ltd. 0389-2320418
211 Nagaland State Co-operative Bank Ltd.  03862-234510
212 Orissa State Co-operative Bank Ltd. 0674 253 1834
213  Pondichery State Co-opertive Bank Ltd. 0413 228 0755
214  Punjab State Co-operative Bank Ltd. 0172-5061426
215  Rajasthan State Co-operative Bank Ltd. 0141-2744815
216 Sikkim State Co-operative Bank Ltd. 03592 232 008
Tamil Nadu State Apex Co-operative Bank
217 Ltd. 044-25340973
218 Tripura State Co-operative Bank Ltd. 9007114191
219 Uttar Pradesh Co-operative Bank Ltd. 033 2243 7816
  West Bengal State Co-operative Bank
220 Ltd. 033 2243 7816
Chhattisgarh RajyaSahakari Bank
221 Maryadit 077125 82643
Uttarakhand State Co-operative  Bank
222 Ltd. 05946 245 097
 NBFCS IN INDIA

Ranking NBFCs in India Phone-no

1 Bank of Baroda 1800 22 3344
2 Bank of India 033 2243 6531
3 Bank of Maharashtra  033 2280 4200
4 Canara Bank 033 2283 1505
5 Central Bank of India 1800 22 1911
6 Corporation Bank 1800 425 2407
7 Dena Bank 18002336427
8 Indian Bank  044 – 2813 4126
+91 044-
9 Indian Overseas Bank 28524212
10 L&T Finance Limited (erstwhile Family Credit Limited) 033 6611 1800
11 Shriram City Union Finance Limited + 91 2464 2733 
12 Tata Capital Financial Services Limited 91 22 6745 9000
13 Aditya Birla Finance Limited  091239 77144
14 India Infrastructure Finance Company Limited 9899550491
15 Capital First Limited 1860 500 9900
16 Reliance Capital Limited 18002003838
17 Kotak Mahindra Prime Limited 1800-209-5732
18 Manappuram Finance Limited 093307 85490
19 IFCI Limited +91-11-4179 2800
20 L&T Infrastructure Finance Company Limited 1800-209-4747
21 Sundaram Finance Limited 044 28881207
22 India Infoline Finance Limited 033 4404 8600
23 Tata Motors Finance Limited 1800 209 0188
24 IL&FS Financial Services Limited 033 4407 6000
25 Magma Fincorp Limited 033 4408 7800
26 Hinduja Leyland Finance Limited 91 44 2242 7555
Indian Renewable Energy Development Agency
27 Limited ( 011)-26717400
28 SREI Infrastructure Finance Limited +91 33 6160 7734
29 Ujjivan Financial Services Limited 084201 90642
30 Religare Finvest Limited 033 4063 9115
31 Bajaj Holdings & Investment Limited (022) 22023626
32 PTC India Financial Services Limited 011 2673 7300
33 ICICI Securities Primary Dealership Limited 91 22 - 88 2460
34 Satin Creditcare Network Limited 0124-4715400
35 JM Financial Credit Solutions Limited  91 22 6630 3030
36 Indiabulls Commercial Credit Limited 0124-6681199
37 Kotak Mahindra Investments Limited 033 4043 3500
38 IndoStar Capital Finance Limited 91 2243157000
39 Axis Finance Limited (022) 2425 2525
40 L&T Infra Debt Fund Limited 1800-209-4747
41 Credila Financial Services Private Limited 1800 209 3636
42 STCI Primary Dealer Limited 47676557-60
43 Edelweiss Finance & Investments Limited 18001023335
44 Tata Motors Finance Solutions Limited 91-22-6181-5400
45 PNB Gilts Limited 91-11-23325759
46 Muthoot Capital Services Limited 0484 236 6815
47 Edelweiss Retail Finance Limited 1-800-1026371
48 STCI Finance Limited 022 6142 5100
49 SBI DFHI Limited 11 2335 9993
50 Tata Investment Corporation Limited +91 (22) 6665 8282
 RANKING OF BANKS (TOP 35)

Ranking Banks in India Total Asset (Cr.)

1 SBI 30,46,499.14
2 HDFC Bank 10,58,910.81
3 ICICI Bank 7,64,459.23
4 PNB 6,51,795.99
5 Axis Bank 6,40,730.77
6 Bank of Baroda 6,33,993.82
7 Canara Bank 5,70,558.91
8 Bank of India 4,83,764.84
9 Union Bank 4,17,968.35
10 Yes Bank 3,13,950.95
11 Central Bank 2,69,657.91
12 Kotak Mahindra 2,67,392.46
13 Indian Bank 2,43,752.40
14 IndusInd Bank 2,38,425.26
15 IDBI Bank 2,38,080.71
16 IOB 1,97,899.28
17 UCO Bank 1,77,505.28
18 Federal Bank 1,39,188.18
19 IDFC First Bank 1,37,164.68
20 Bank of Mah 1,36,141.96
21 Punjab & Sind 94,569.81
22 JK Bank 88,589.37
23 South Ind Bk 80,864.96
24 Karnataka Bank 70,305.25
25 RBL Bank 68,966.06
26 Karur Vysya 62,561.37
27 Bandhan Bank 48,525.08
28 City Union Bank 39,146.30
29 DCB Bank 30,420.16
30 AU Small Financ 29,003.32
31 Lakshmi Vilas 28,050.49
32 CSB Bank 14,504.99
33 Dhanlaxmi Bank 10,293.97
 PLAYERS IN SME FUNDING

Number of SMEs in India: The number is estimated to be at 42.50

million, registered & unregistered together. A staggering 95% of
the total industrial units in the country. SME & Employment opportunity:
Employs about 106 million, 40% of India's workforce. Next only to the
agricultural sector.
Name of the Bank Interest Rate Loan Amount Repayment Tenure
State Bank of
8.25% to 16.95% Up to Rs.500 lakh Up to 7 years
India
Varies according to type of
ICICI Bank Up to Rs.2 crore Up to 7 years
loan
Bajaj Finserv 18% onwards Up to Rs.30 lakh Up to 60 months
Axis Bank Based on business profile Up to Rs.5 crore Up to 60 months
Tata Capital 19% onwards Up to Rs.50 lakh Up to 36 months
YES Bank 16.25% Up to Rs. 50 lakh Up to 36 months
Karur Vysya Bank Linked to Credit Score Up to Rs.5 crore Up to 7 years
HDFC Bank 15.65% to 21.20% Up to Rs.50 lakh Up to 48 months
Aditya Birla
17.85% Up to Rs.1 crore Up to 48 months
Capital
Mahindra Finance 13% to 15% Up to Rs.10 lakh Up to 36 months
 HOW TO APPLY FOR AN SME LOAN?

While every bank or NBFC might charge different interest rates for
providing loans to SMEs, the lowest interest rate provided under
Government Loan Schemes is 8.40% and can go up to 24% per annum.
The interest rate charged for SME loan will depend on different conditions
like provision of collateral, loan amount, repayment tenure, and applicant’s
profile, creditworthiness and repayment capacity.
 DOCUMENTATION
Every bank or NBFC will have a loan application form which requires to be
filled. Some of the common details that are required in these forms are:
Name of Company
Date of firm creation
Address of the firm
Operating address of firm
E-mail address of firm
Contact Details
Sector/Industry code
Permanent Account Number
GST No.
When you apply for a loan from any financial organization, it is common
that they will require certain financial details regarding your current debts
and background. These are some of the commonly required details:
Bank A/C details
On-going Loans/Debts
Any other financial service applied for
Brief regarding security of facility
Details of parent company/associates/group entities
All relevant profitability/liquidity-oriented details mentioned in an annual
accounting report
Apart from financial details you are also required to mention certain legal
details necessary for processing:
Documents regarding registration of firm/shop/manufacturing unit
Registration certificate of the firm under MSME
Copies of sales tax-return filing documents
Copies of income tax-return filing documents
Drug license (if running a pharmaceutical manufacturing/selling
enterprise)
 THE DIFFERENT LOAN OPTIONS AMONG
SMEs
As per World Bank’s report, around 80% of industrial enterprises comprises
of small, medium & micro-enterprises and employ over 117 million
individuals and accounts for 40% of nations manufacturing output. Owing to
the significant impact they have on the nation’s economy, much financial
assistance has been extended by both the government and lenders in the form
of SME loan options. 
There are several products of SMEs loan such as Working Capital Loan,
Overdraft Loan, Term loan, Mudhra, Equipment Financing etc.
The documentation and process of different products are as same as
documentation and process of SMEs loan which has been discussed ealier.
Working Capital Loans
Every business requires constant liquidity for conducting business as
efficiently as possible. In order to ensure that there are no obstacles in the
regular operations of a firm, many firms avail working capital loans. Not
only do they help in handling temporary financial crises, they also allow
businesses to focus on growth while the regular expenses are managed
through a loan
Term Loans
When you have planned long term expenses but find it challenging to set
aside an amount for it, which is where term loans come into the picture.
They are long term loans that are usually borrowed for a certain purpose.
The available duration of payback for term loans ranges from 5 years to 15
years. Furthermore, some banks also provide term loans without provision
of collateral.
Equipment Financing
Manufacturing businesses require modern equipment to stay ahead of its
competitors in the market. Equipment loans are specifically provided by
banks and NBFCs to buy new machinery for a firm. Equipment financing
helps businesses grow and explore its potential by providing loans of up to
25 crore. While the limit is higher, SMEs usually do not require a higher
amount for equipment financing. As the equipment in question is
considered as collateral in the loan, the interest rate for this type of loan is
low.
Pradhan Mantri Mudra Yojana (PMMY)
 The Government of India considers that small business requires investment and
financial help to truly realize their potential. Taking this into consideration, the
government has introduced the PMMY scheme which is specifically designed to
serve SMEs and MSMEs of all types. There are 3 categories within Pradhan
Mantri Mudra Yojana for different range of amount:
 Shishu Loans are the basic category which provides loans of up to Rs. 50,000
 Kishor category is a notch higher and provides loan amount ranging from Rs.
50,000 to Rs. 5,00,000
 Tarun Category loans are the highest category of PMMY loans which provide an
amount from Rs. 5,00,000 to Rs. 10,00,000
 The key advantage of this type of loan is that you can use this loan amount
flexibly into working capital needs, machinery, as well as vehicles.
Stand Up India Scheme
This is a SME loan option that is specifically designed for entrepreneurs that
belong to scheduled caste or scheduled tribe. This scheme’s benefits are also
extended to female entrepreneurs. Under Stand-up India scheme,
entrepreneurs can avail a loan amount between Rs. 10 lakh and Rs. 1 crore.
At least 51% of the shareholding stake should be held either by an SC/ST
individual or woman entrepreneur in case of non-individual enterprises
Asset-oriented business loans
SME owners can avail an instant loan by mortgaging their assets like gold,
shares, property or business asset. Through such an asset-oriented business
loan, individuals would be able to avail a loan amount that would be based
on the prevailing market rate of their property. The rate of interest levied
on such loans is comparatively lower than that of unsecured business
loans.
Point of sale finance
Depending on their monthly sales that were routed via EDC terminal, SME
owners can avail a loan to finance their venture. The said loan option takes
into account real-time data related to credit card sales and monthly debit to
extend a loan to the borrowers. Also, additional credit can be availed by
them by promoting cashless transactions.
Cash credit
SME owners can avail the facility of cash credit by pledging their current
assets like raw materials account receivable, stock in trade and unpaid
invoices as collateral. Additionally, borrowers can leverage the cash credit
facility as revolving credit and boost their working capital. Borrowers can
also avail an overdraft facility as well from a financial institution where
they already have an existing account.
However, if a borrower does not want to pledge their assets to avail a loan,
they can seek financial assistance from financial institutions like Bajaj
Finserv who provide medium enterprises business loans without any
collateral.
 Letter of Credit
Mainly used by businesses who are involved in foreign trade, this is a
letter from a bank that guarantees the payment and assures that a buyer’s
payment to a seller will be received on time. Also known as Documentary
Credit, this letter acts as a trust point between the buyer and seller and
plays an imperative role in the international trade where both the parties
may not know each other personally and are also separated by distance and
laws.
In the event, when the buyer is unable to make payments, the seller will
approach the bank for payment, who after analyzing the situation will
honor the demand (assuming all the requirements are met).
Overdraft
Here the word overdraft means, withdrawing more money from your
current account than what has been deposited. It is a credit facility
extended by banks in exchange for some collateral or securities, like fixed
deposits, life insurance policy, property, etc. Based on the assets given as
collateral, the bank offers an open-ended loan which a business can utilise
to fund its requirements. Here the interest will be charged on the loan
amount actually used and not on its total value.
THANK YOU