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Testimonials

SMC has offices throughout India, so we can reach clients efficiently practically anywhere.
Our personalized service and streamlined documentation gets your product to you faster.

Mr. Arvind Pal

Testimonials
SMC has offices throughout India, so we can reach clients efficiently practically anywhere.
Our personalized service and streamlined documentation gets your product to you faster.
Mr. Arvind Pal
Home > Capital Market Loans > Promoter Funding

Promoter Funding

Promoter funding is increasingly being used by Promoters to meet their diverse requirements such as expansion and diversification of the business. The security covers for Promoter funding depending upon a case-by-case basis.

FEATURES

  • Collateral: Owned shares held by the promoters and holding companies
  • Tenure: One to Three Years
  • Minimum Loan Amount
  • Loan available to promoters or the company.

 

ADVANTAGES

  • Easy documentation
  • Increased promoter’s holding in the business by using existing stake.
  • Addressing liquidity requirements for expansion and diversification of business.
  • Quick and easy procurement.
  • Interest rates are levied on daily reducing balance method
  • Customized offerings to suit business requirements.

 

 
 
 
For more information
please write to us at
response@smcfinance.com



  • Individuals, HUF’s, Private and Public Limited Companies
  • Indian resident between 18 to 55 years of age
  • Customer needs to comply with KYC norms
  • Customer needs to execute loan documents with Financer
  • Equity shares have to be in demat form only.
  • Equity shares should be fully paid and should not be in lock in mode.
  • Customer has to pledge the shares in favour of Financer.
  • Customer should have / open a demat account with approved Depository participant.
  • Compliance with SEBI & Stock Exchanges Listing requirements.




 

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How can I avail Promoter Funding facility?

  • You have to open a DP account with Depository participant approved by SSFS and have to execute Power of Attorney (POA) to Funder.
  • You have to complete KYC formalities.
  • You have to enter into an agreement with Financer.

 

What additional security/collateral does a borrower need to provide?

No additional security/collateral need to be provided, apart from the securities against which the loan is granted

 

Is guarantor a must?

Yes, a corporate guarantee is required.

 

Is any regulatory compliance necessary?

Yes. Intimation of the pledge of the shares is to be made to the SEBI under the Substantial Acquisition of Shares and Takeovers (SAST) and to the exchanges as per the listing agreements

 

What are the Lending Rates?

Promoter Funding comes to you at attractive interest rates, which are based on the trends prevailing in the market at the time of availing the loan

 

How much margin has to be maintained?

Margins range from 50% – 75% of the value of the promoter holding to be funded depending on the risk profile of the business and the stock

 

What may happen if minimum margins are not maintained?

A mark to market margin report would be sent to you on daily basis and you will have to make up shortfall on regular basis. In the event of a default to bring margins at required level securities will be liquidated by Financer as per RMS policy to recover the shortfall. All losses and brokerage charges in relation to the position squared off will be borne by you

 

Can I pre pay my loan?

Yes, you can prepay subject to 25% of the Loan amount. A prepayment charge of 2% on the loan amount pre paid would be charged

 

Can I foreclose my loan facility before the fixed tenure?

Yes, you can foreclose the loan facility. Foreclosure charges of 2% on outstanding amount will be levied. Interest will be charged on pro rata basis for the outstanding amount as on the date of foreclosure

 

What is the process I need to follow to foreclose my loan facility?

You need to send a request and settle outstanding dues along with interest, prepayment and any other charges. After the loan has been foreclosed, you will submit an instruction to your DP to initiate the closure of pledge

 

How can a borrower avail the Promoter Funding Facility?

  • Call us at 1800 003 8867 between 9:30 AM – 6:30 PM from Monday to Saturday (Except Public Holidays)
  • E-mail us at shyamfinance@shreeshyamfinancial.com with your details: Name, Mobile Number and our representative will get in touch with you
  • SMS ‘SSFS’ to 56767
  • Visit the nearest branch.

 



 
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Capital Market Loans > Promoter Funding    
img1
Promoter Funding

Promoter funding is increasingly being used by Promoters to meet their diverse requirements such as expansion and diversification of the business. The security covers for Promoter funding depending upon a case-by-case basis.

Testimonials

SMC has offices throughout India, so we can reach clients efficiently practically anywhere.
Our personalized service and streamlined documentation gets your product to you faster.

Mr. Arvind Pal

Testimonials
SMC has offices throughout India, so we can reach clients efficiently practically anywhere.
Our personalized service and streamlined documentation gets your product to you faster.
Mr. Arvind Pal
FEATURES
  • Suitable for commodity  traders, processors and aggregators
  • Limit: 50% – 75% of value of commodity (max Rs. 10 Crore per borrower)
  • Tenure: upto 1 month prior to validity date (max. 12 months)

 


ADVANTAGES
  • Easy documentation
  • Increased promoter’s holding in the business by using existing stake.
  • Addressing liquidity requirements for expansion and diversification of business.
  • Quick and easy procurement.
  • Interest rates are levied on daily reducing balance method
  • Customized offerings to suit business requirements.

 

 

ELIGIBILITY


  • Individuals, HUF’s, Private and Public Limited Companies
  • Indian resident between 18 to 55 years of age
  • Customer needs to comply with KYC norms
  • Customer needs to execute loan documents with Financer
  • Equity shares have to be in demat form only.
  • Equity shares should be fully paid and should not be in lock in mode.
  • Customer has to pledge the shares in favour of Financer.
  • Customer should have / open a demat account with approved Depository participant.
  • Compliance with SEBI & Stock Exchanges Listing requirements.

Service Charges




 

coming soon

 

 

 

 

 

 

 

 

 

Documentation




 

coming soon

 

 

 

 

 

 

 

 

 

 

Terms and Conditions





 

coming soon

 

FAQS

How can I avail Promoter Funding facility?

  • You have to open a DP account with Depository participant approved by SSFS and have to execute Power of Attorney (POA) to Funder.
  • You have to complete KYC formalities.
  • You have to enter into an agreement with Financer.

 

What additional security/collateral does a borrower need to provide?

No additional security/collateral need to be provided, apart from the securities against which the loan is granted

 

Is guarantor a must?

Yes, a corporate guarantee is required.

 

Is any regulatory compliance necessary?

Yes. Intimation of the pledge of the shares is to be made to the SEBI under the Substantial Acquisition of Shares and Takeovers (SAST) and to the exchanges as per the listing agreements

 

What are the Lending Rates?

Promoter Funding comes to you at attractive interest rates, which are based on the trends prevailing in the market at the time of availing the loan

 

How much margin has to be maintained?

Margins range from 50% – 75% of the value of the promoter holding to be funded depending on the risk profile of the business and the stock

 

What may happen if minimum margins are not maintained?

A mark to market margin report would be sent to you on daily basis and you will have to make up shortfall on regular basis. In the event of a default to bring margins at required level securities will be liquidated by Financer as per RMS policy to recover the shortfall. All losses and brokerage charges in relation to the position squared off will be borne by you

 

Can I pre pay my loan?

Yes, you can prepay subject to 25% of the Loan amount. A prepayment charge of 2% on the loan amount pre paid would be charged

 

Can I foreclose my loan facility before the fixed tenure?

Yes, you can foreclose the loan facility. Foreclosure charges of 2% on outstanding amount will be levied. Interest will be charged on pro rata basis for the outstanding amount as on the date of foreclosure

 

What is the process I need to follow to foreclose my loan facility?

You need to send a request and settle outstanding dues along with interest, prepayment and any other charges. After the loan has been foreclosed, you will submit an instruction to your DP to initiate the closure of pledge

 

How can a borrower avail the Promoter Funding Facility?

  • Call us at 1800 003 8867 between 9:30 AM – 6:30 PM from Monday to Saturday (Except Public Holidays)
  • E-mail us at shyamfinance@shreeshyamfinancial.com with your details: Name, Mobile Number and our representative will get in touch with you
  • SMS ‘SSFS’ to 56767
  • Visit the nearest branch.

 

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