| Sr. No. | Instance | Charges per instance |
|---|---|---|
| 1 | Late payment penal charge/s on delayed payment of EMI(s) | Up to 2% p.m. penal charge (from date of default to regularisation) – computed in absolute terms + relevant GST will be applicable on the outstanding EMI amount(s) per month on a cumulative basis. |
| 2 | Delay in submission of documents for disbursement or renewal of facilities on time | Up to 2% p.m. penal charge (from date of overdue to regularisation) – computed in absolute terms + relevant GST will be applicable on the sum of limits of revolving lines and or principal outstanding of non-revolving lines. Not applicable on ODFD, 100% FD backed facility/ies, PSR & DRUL lines. |
| 3 | Delay in submission of Letter Acknowledging their Debt (LAD) | Up to 2% p.m. penal charge (from date of overdue to regularisation) – computed in absolute terms + relevant GST will be applicable on the sum of limits of revolving lines and or principal outstanding of non-revolving lines. |
| 4 | Non-compliance/ Breach of facility covenants | Up to 2% p.m. penal charge (from date of default to regularisation) – computed in absolute terms + relevant GST will be applicable on the sum of limits of revolving lines and or principal outstanding of non-revolving lines. |
| 5 | Non-submission or delay in submission of Insurance for Property/ Stock/ Plant & Machinery held as collateral for facilities. | Up to 2% p.m. penal charge (from date of policy expiry to regularisation) – computed in absolute terms + relevant GST will be applicable on the sum of limits of revolving lines and or principal outstanding of non-revolving lines. Not applicable on ODFD, 100% FD backed facility/ies, PSR, DRUL and or lines where the said collateral is not pertinent. |
| 6 | Non-submission or delay in submission of Stock Statement(s) | Up to Rs. 5,000/- + relevant GST per delayed submission. If the submission isn’t received within 15 days from the submission due date, the Bank will drop the drawing power on the facilities. Not applicable on ODFD, 100% FD backed facility/ies, PSR, DRUL & Non-DP backed lines. |
| 7 | Incremental Interest on Temporary Overdrafts (TOD) | Up to 1.5% p.m. + relevant GST computed in absolute terms on the TOD amount availed for the days, TOD is used. |
What’s in store for you
Explore Brokerage Capital & Commodity Offerings
More About Brokerage Capital & Commodity Financing
Please note the following Penal fees & charges applicable based on the instance. This is also communicated in our offer/ sanction letter.
Capital and Commodity Market financing for brokers typically includes features such as tailored products to meet specific working capital and margin requirements, access to liquidity through bank guarantees and letters of credit, and specialised services for efficient collection and disbursement of funds. Additionally, brokers often benefit from the expertise of banks that are clearing members of major exchanges, providing them with insights and solutions tailored to the intricacies of the capital and commodity markets.
Capital and Commodity Market financing offers brokers several advantages, including access to short-term funds to meet working capital needs and margin requirements. It also provides them with the ability to manage cash flows effectively through services like bank guarantees and cash management solutions. Additionally, brokers benefit from the expertise of banks that are clearing members of major exchanges, which can help them navigate the complexities of the markets and tailor financial products to their specific needs.
To apply for Capital and Commodity Market financing for brokers, visit the HDFC Bank website. Here, you can find detailed information about the various financing options available, including working capital loans, bank guarantees, and cash management services. The website also provides contact details for HDFC Bank representatives who can assist you with your application. Additionally, you can learn about the eligibility criteria and documentation requirements for each type of financing. By applying through the HDFC Bank website, you can streamline the process and ensure that you have access to the funds you need to operate successfully in the capital and commodity markets.
Frequently Asked Questions
Capital and Commodity Market Brokers secure financing for their operations by availing of various financial products offered by banks and financial institutions. These products typically include working capital loans, bank guarantees, letters of credit, and margin financing. Brokers can also use their securities holdings as collateral to secure loans. Additionally, some brokers may access short-term financing through invoice discounting or factoring services. Overall, securing financing enables brokers to meet their operational expenses, margin requirements, and other financial obligations in the capital and commodity markets.
When seeking financing services, Capital and Commodity Market Brokers should consider several key factors. These include the interest rates and fees associated with the financing, the flexibility of the terms, and the speed at which funds can be accessed. Brokers should also assess the reputation and reliability of the financing provider, ensuring they can meet their needs efficiently and effectively. Additionally, brokers should consider the impact of the financing on their overall financial position and the ability to repay the borrowed funds.
The current economic climate can significantly impact the availability and terms of financing for Capital and Commodity Market Brokers. During economic downturns or periods of uncertainty, lenders may become more cautious and tighten their lending criteria, making it harder for brokers to secure financing. Additionally, interest rates may rise, increasing the cost of borrowing. Conversely, during periods of economic growth, lenders may be more willing to lend, and interest rates may be lower. Brokers must closely monitor the economic climate to understand how it may impact their ability to access financing and plan accordingly.