This is a short term working capital facility for the Key Account Customers / Dealers of Tata Steel Distributors already registered with Channel Finance.

Insta-Loans Scheme Specifications

  1. Finance Amount up to Rs. 2 Crore
  2. Credit Period up to 45 Days (need based)
  3. Interest Rate Band-attractive rate based on STLR (Current STLR - 14.50% p.a.)
  4. Nil or negligible collateral security
  5. Quick disbursal

Objective

The key objective of the Insta-Loan Scheme is

  1. To ease the cash flow of Tata Steelium distributors by financing their Key Customers.
  2. Providing finance at competitive cost to the Key Customers

Insta-Loan Eligibility Criteria

  1. Only for Tata Steel material buyers, through authorized distributors
  2. Customer should have had a business relationship with the Distributor for a minimum of 3 years
  3. Customer should have a good payment record with the Distributor (no overdues > 15 days)

Value Propositions for:

Distributors

financejunction organises finance for your channel partners thus enabling them to fund bigger buys from you. Benefits of partnering with finanjunction for Seller Organisations are:

  • Distributor funds locked in Customer Invoices can be unlocked

  • Increased liquidity

    due to cash sales to KAC & Dealers

  • Increased buying power

    with Tata Steel due to added liquidity

KAC & Dealers

  • Easy availability

    of finance at a competitive cost with minimal or no security

  • Liquidity situation remains solid resulting in shift to large volume based business thus providing a trigger to the supply chain

  • Mobilizing funds

    to better/ alternative areas for further improvement of business

Role of financejunction

  1. To act as a single point contact for Tata Steelium Distributors, Customers and Financing Partner (Tata Capital Ltd.)
  2. To build an internet-based application, which will enable : Transactions on 24 x 7 basis
  3. Access to enhanced MIS
  4. To ensure speedy & hassle-free implementation with quick documentation & verification
  5. To liaison with financing partner ( Tata Capital Ltd. ) to ensure competitive lending rate based on risk profile of customer & risk appetite of the financing partner (Banks / NBFC's)

Achievements

  1. Disbursed Rs 500 Lacs in the last Five Months
  2. Five Key Account Customers for Two Channel Finance Distributors ( Tata Steelium ) already on Board
  3. Interest Rate reduced by 100 basis points in the very first quarter of launch