KVB Timber Plus

KVB offers a unique product, tailor-made to suit the trade requirements of the timber industry. Working Capital - both fund and non-fund based are available at competitive interest rates and margin.

  • 12 Months

    Validity

  • 15%

    Cash margin for Non-funded Working Capital

  • 120 Days

    Usance period for ILC

Features & benefits
  • OCC / SOD facilities are available.
  • Issued mainly to meet the working capital requirements.
  • Tailor-made to suit the needs of Timber industry.
Charges and Limits

I.Working Capital - Fund based

Particular Charges and Limits
Tenor Valid for 12 months and renewable on a yearly basis.
Margin
  • OCC: Stock - 25% and Book Debts - 40%. For calculation of Drawing Power, Paid Stocks and Book Debts up to a maximum of 120 days excluding receivables from sister concerns shall be considered.
  • SOD: Minimum 40% margin on immovable property offered as security (Minimum security coverage of 166.67 %).
Security
  • Primary:
  • OCC: Hypothecation of entire current assets.
  • SOD: EM charge on the timber unit comprising land and building / other residential / commercial immovable properties (Minimum Security coverage of 166.67%).
  • Collateral:
  • OCC: EM charge on the timber unit comprising land and building / other immovable properties / tangible securities.(Minimum Security coverage of 75%).
  • SOD: Hypothecation of entire current assets of the unit.
Guarantors Proprietor / Partners / Directors/ Title holders of the property given as security and Husband of Proprietrix / Lady Partners.

II. Working Capital - Non-fund based

Facility
  • FLC / Trade Credit
  • ILC as a sub-limit up to max 50%
Purpose For Working Capital requirements.
Margin 15% cash margin
Usance Period 180 days for FLC and 120 days for ILC.
Security
  • Primary: Hypothecation of stocks procured out of bank finance and other current assets.
  • Collateral: EM charge on the timber unit comprising land and building / other immovable properties / tangible securities. Security coverage of 75%.
Guarantors Proprietor / Partners / Directors / Title holders of the property given as security and Husband of Proprietrix / Lady Partners.
Interest Rate
  • The applicable Rate of Interest (ROI) is linked to the Credit Score / Rating.
  • For details please refer the section on Interest Rates.