Sanctioned
Rs.150 Cr
Collateral-free vendor-financing limit for an Industry Major, on the scheme’s best terms
Cash credit (clean) under e-VFS, Industry Major variant · State Bank of India
- Situation
- An A-rated infrastructure EPC company in Maharashtra was paying its vendors on supplier credit. The requirement was a bank-funded vendor-payment limit sized to that credit, with no margin, no collateral and no disturbance to its existing working-capital limits.
- Credit question
- Will SBI sanction a Rs. 150 Cr clean cash-credit limit to the buyer itself, on its external rating alone, with nil security and nil margin — and at what price?
- What Finansh did
- Identified the Industry Major variant of e-VFS as the right instrument and structured the limit to replace sundry creditors in the projections from FY 2026-27. Prepared the complete appraisal file in SBI’s own formats — CMA across three audited, one estimated and three projected years, the credit risk assessment inputs, SWOT, associate-concern statements, the EPC-specific rating inputs and the credit-proposal write-up — so the branch processed a finished file rather than built one. Held projections to a defensible 15% growth, closed the bank’s queries in one revised round, and negotiated pricing and fee down to the scheme’s floor.
- Outcome
- Rs. 150 Cr cash credit (clean) sanctioned under e-VFS, Industry Major variant, on the best terms the scheme permits: unsecured, nil margin, the floor rate linked to the 91-day Treasury Bill, and a 93% concession on the processing fee. The first sanction of its kind in SBI’s Maharashtra Circle.
- Turnaround
- 22 working days from application to sanction
- What it changed
- Rs. 150 Cr of vendor payments are now funded by the bank for up to 90 days with no margin and no collateral. The processing-fee concession alone saved about Rs. 1.05 Cr against card rate. The company’s property and current assets remain free for its next requirement, and the pricing it holds is the lowest the scheme offers.