Promotor Funding

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Promoter funding is offered to promoters of the companies against their shareholding in their respective company. With the help of this facility the promoter can increase the shareholding or use in expansion and diversification of the business.

Features  :


  • Loan available against existing promoter holding
  • Margin – 50% – 75% (depending on the risk profile of the business and the stock)
  • Tenor – 1 to 3 years
  • Loan Amount – INR 2 Cr to INR 10 Cr
  • Attractive Interest Rates
  • Simple Documentation

Benefits   :

  • Increase promoters holding in the business with the use of existing stake
  • Liquidity requirement for expansion and diversification of business
  • Easier and faster processing
  • Promoters do not have to liquidate their holdings to meet short-term cash requirements
  • Promoter can increase their stake through buying at lower price Eligibility Criteria
  • Individuals, HUF’s, Private and Public Ltd Companies
  • Indian resident between 21 to 60 years of age
  • Customer need 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 the SEBI & Stock Exchanges Listing requirements

Eligibility Criteria :

  • Individuals, HUF’s, Private and Public Ltd Companies
  • Indian resident between 21 to 60 years of age
  • Customer need 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 the SEBI & Stock Exchanges Listing requirements

FREQUENTLY ASKED QUESTION   :

Ques: 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.

Ques: 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

Ques :Is guarantor a must?

Answer: Yes, a corporate guarantee is required.

Ques: Is any regulatory compliance necessary?

Answer: 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

Ques: What are the Lending Rates?

Answer: 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

Ques: How much margin has to be maintained?

Answer: 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

Ques: What may happen if minimum margins are not maintained?

Answer: 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

Ques: Can I pre pay my loan?

Answer: 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

Ques: Can I foreclose my loan facility before the fixed tenure?

Answer: 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

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

Answer: 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

Ques: 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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