Finance Mart

COST SAVING IS NET INCOME, ISN’T IT ?

Dear Reader,

One MSME unit proposed to set up a manufacturing unit in the textile sector and approached to a leading nationalised bank for a financial facility of Rs. 35 crores. They contacted our team for the documentation for the loan proposal and for liaisoning and discussion with the bank. Our team has done a detailed analysis of the project and prepared the project report and TEV report, and considering the viability of the project, has suggested approaching multiple banks for the said proposal for getting the best deal. We have prepared all the requisite documents for 3 different banks as per their different requirements and submitted files to all 3 leading banks instead of the one bank that the client had approached, and we have helped the client to negotiate and discuss the proposal with all 3 banks. Due to negotiations with three banks, the said MSME unit has received an interest rate benefit of 2.65% per annum as compared to the original card rate offered by the initial bank. It resulted in an interest cost savings of Rs. 4.86 crores on the client’s term loan over a 10-year repayment period. The said cost savings of Rs. 5 crores for the unit comes to almost 10% of his total project cost of Rs. 55 crores. This is the amazing power of closure of deal through professional team and approach !

We would like to share that Recently, The Gujarat Government has issued the Aatmanirbhar Gujarat Schemes 2022 for assistance to Industries

This scheme will be known as Aatmanirbhar Gujarat Schemes for  assistance to MSME’s has been introduced to encourage new entrepreneurs to fulfil their entrepreneurial ambitions not only by de-risking their investments but also by creating job opportunities at large scale by way of increased incentives.