Funding to the extent of 5 Times of Collateral Value

Sun Steel Impex is a Mazgaon Based Trader of Steel

Turnover:

• 32 Crores in 2019 to
• 20 Crores in 2020 to
• 13 Crores in 2021
• But in 2022 it is back to 30 Crores

Existing Limit: With Union Bank for 150 Lakhs (Renewed in January 2022 from 90 Lakhs to 150 Lakhs)

Challenge: Existing Bank was not increasing the limit beyond 150 Lakhs and many other banks were asking for additional collateral, because already on 80 Lakhs of security, the exposure taken was close to 200%

Solution:
In this case, we took over 150 Lakhs and given total limit of 3.10 Crores with the same collateral plus a CGT Cover of 100 Lakhs. So, just one collateral security of 80 lakhs and given 3.10 Cr of CC limit. We also reduced the rate by 0.50%!

Again, next year, on the same collateral, we added 1 Crore of CGT Cover, and did an enhancement of 2 Crore CC Limit. So, practically, on an 80 Lakhs of Warehouse, the Limit stands at 5.10 Crores !