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    About Trade Finance

    Trade finance or trading loan is any financing that is provided for the purpose of conducting domestic and/or international trade between a buyer and a seller. Banks and financial institutions can be the providers of such financing and thus allow the transaction.

    This kind of financing may allow an extra level of protection to the buyer and a quicker access to the funds generated by the transaction for the seller. There can be a few specific types of loans that are based on or provide support to traditional trade loans. Such can be documentary collection, trade credit insurance, factoring and forfeiting.

    Products offered under Trade Finance

    A trade finance or trading loan availed from most banks will normally have one or all of the following products and/or services –

    1. Letter of credit – An undertaking or promise given by the buyer’s bank to the seller that if the latter presents pre-specified documents to the buyer’s bank regarding a transaction as per a purchase agreement, the buyer’s bank will make a payment to the seller
    2. Bank guarantee – An undertaking or promise wherein a bank stands guarantee on behalf of an applicant in favour of a beneficiary. If in case the applicant fails to deliver to the beneficiary on pre-specified terms or agreement, the guarantor bank will make a payment to the beneficiary upon receiving a demand or a claim. The different types of bank guarantee can be mentioned as follows –
      • Tender Bond
      • Advance Payment
      • Performance Bond
      • Financial
      • Retention
      • Labour
    3. Bill Collection and Discounting – Herein, the seller’s bank collects the payment from the buyer or buyer’s bank for the goods or services purchased
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    Reason to Choose us

    We offer award-winning, low-rate car loans with no ongoing fees, saving our customers thousands of dollars.

    Easy Loan Approvals

    Among the easiest loans to get is a secured loan. That’s where you put up something of value in exchange for cash.

    Lowest Possible Prices

    Cheapest personal loans are those loans which are available on lowest interest rates than market rates.

    Hassle free

    Fast, hassle-free. Trade Finance up to ₹500 Crore· Affordable interest rate starting from 11.99% p.a.

    Secure Loan Processs

    Secured loans are loans which require the borrower to pledge an asset or security to avail the loan.

    Benefits of Trade Finance

    This type of financing scheme helps businesses handle international transactions seamlessly.

    Customers can electronically process export and import documentary credits, guarantees, and collections.

    Using this scheme, business owners can pay their client upfront, irrespective of their geographical location, without having to spend any money at the moment. Borrowers can repay the debt later to the concerned financing organisation within the predetermined period of time.

    Businesses have the option to pay their suppliers using their local currency to reduce any currency risk that may come up later.

    The greatest benefit of this scheme is that it guarantees security on the payments made to a supplier and helps improve the borrower’s relation with them.

    The finances under this scheme are usually covered under an insurance policy.

    Eligibility Criteria and Details for Trade Finance (Trade Loan) Options in Rajasthan

    Globally, eligibility criteria for availing a trade finance remains more or less the same. Since it is a loan by all means, most of the regulations and requirements of a conventional trade finance remain standard. Based upon specific banks, additional criteria might come into play, but on an average, the following conditions, if met, qualify a customer to avail a trade loan without any hassle

    Age

    As with any kind of loan, the interested customer must be of legal voting age or above and allowed to conduct business, either in partnership or proprietorship

    Business Age

    The minimum years required for a business to be functional varies from bank to bank, but could be anywhere between 2 years to 4 years

    A few of the necessary details that are common to most trade finance schemes are mentioned below –

    Loan Limits

    These again vary with differing banks, lower limits being close to INR 15,000 to INR 30,000. The upper limits could be decided as per the need of the customer and the limits set by the bank. Generally, a maximum of INR 2 crores to INR 3 crores can be approved

    Loan Tenure

    Tenures for repayment of the loan can be as high as 60 months and can be as low as decided by the customer or permissible by the bank

    Loan Security

    Most banks will allow securities in the form of mortgaged land (excepting agricultural land), National Savings Certificates, government bonds or fixed deposits with the bank. Some banks might also accept life insurance policies in the name of the borrower, partner, proprietor or director as security

    Margin on Loans

    Based on the security provided, the margin allowed by different banks could vary between 5% to 45% of the provided security

    Documentation required for availing a Trade Loan

    Being a Secured Loan, there are specific documents that need to be furnished for a borrower to avail a trade finance scheme without any hassle. The most common documents required while applying for a trade loan are as follows

    1. Balance sheet/profit-loss statement for the past 2 to 3 financial years
    2. Declaration of annual sales along with tax returns
    3. Assessment of sales tax/income tax
    4. Stock statements
    5. Proof of insurance of premises and/or stock

    Customer Reviews

    See what our customers have to say about Munafawala products, people and services.

    “I loved the customer service you guys provided me. That was very nice and patient with questions I had. I would really like definitely come back here”

    DONNY J. GRIFFIN (BARODA)

    “We came out of their offices very happy with their service. They treated us very kind. Definite will come back. The waiting time was very appropriate.”

    RYDER LOTHIAN (A’BAD)

    “I want to express my appreciation for assistance that you provided over several years to help resolve a difficult financial situation when my debt was out

    BROCK LAMBRICK (SURAT)

    Ask about our various trade Finance Products and Services

    Trade financiers offer different products and services to fit the needs of various types of companies and transactions.

    Get Started Now

    Munafawala is literally a large network of financing sources all across the globe. We use this network to create the most quality, competitively priced trade finance solutions in the market. Contact us and we’ll create a plan that suits your specific needs.

    Due to our expansive network, Munafawala provides the most competive rates in the market. These rates differ depending on the financial instrument used, the time frame and the bank. Contact us today to discuss your needs so that we can provide the best instrument at the lowest cost to you.

    It definitely depends on the type of instrument uitilized, as well as the response time of the applicant. We have closed deals in a little 24 hours, but most deals take approximately 2-7 days.

    Our munafawala experts are available to create a custom financing solution for you, or just consult on any questions that you have throughout the process.

    The collateral required depends on the type of finacial instrument used, the bank and other factors. In most deals that Munafawala closes, we are able to structure the deal with out the need for any collateral. If collateral is required for deal, we have options for those deals as well.

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