Dealer Trade Advance
Dealer Trade Advance
Boost your two-wheeler dealership business with Trade Advance - an overdraft facility exclusively designed for two-wheeler dealers. Get trade advance up to ₹1 crore at affordable interest rates and take your dealership business to the next level. Apply now!
Features and Benefits of Trade Advance
*Eligibility is subject to credit parameter checks and this facility is available at select branches.
How Does Trade Advance Work?
Let’s understand this with an example. Assume that a two-wheeler dealer wants Trade Advance facility based on their eligibility parameters. Every vehicle financed by the bank from the dealer to be adjusted against the advance payment. When the dealer is unable to settle the dues, the dealer has to transfer the entire outstanding amount to the bank.
If the dealer crosses the set limit of 29 days, interest would be levied on the outstanding amount. Subsequently, the dealer would have to pay the outstanding amount along with the interest.
Here’s how the process works.
FAQs
1. What is Trade Advance?
Trade Advance is an overdraft facility offered to two-wheeler dealers to boost their dealership business.
2. What are the eligibility criteria for Trade Advance?
Only proprietorship, one person entity, LLP, Partnership firm, Private Limited Company and Public Limited Company are eligible for the overdraft facility (Trade Advance). The age of the guarantor or Authorised Signatory should be between 21 years and 60 years. Minimum two years of existence in related business is required. For other eligibility-related details, please feel free to reach out to us.
3. What are the documents required for Trade Advance?
Applicants would need to provide a signed Application Form, Last 2 years’ Audited Financial Statements with P&L, and Balance Sheet with auditor’s report, last 12 months’ GST returns, 6 months’ bank statement, LOI or agreement between OEM’s and dealer or online verified from OEM website, etc. Feel free to reach out to us for mandatory documents required to secure Trade Advance.
4. What is the minimum and maximum overdraft offered?
The minimum amount is ₹3 lakh and the maximum amount is ₹1 crore.
5. What is the repayment tenure for Trade Advance?
The repayment tenure is capped at 12 months.
6. What is the interest-free period?
No interest shall be charged during the standard liquidity provision window (29 days from the facility open date). Interest rate shall be applied on the outstanding principal from the 30th day.
