Our Products
The Corporate loans segment in CFIL provides secured and unsecured loans to local corporates, financial institutions and multi-national companies. Loan Products offered are Working Capital loans, Short-term loans and Term loans.
CFIL has a well-established business line focused on financing against listed equity shares to corporates, promoter groups, and other Ultra High Net-worth clientele in INR. Our ability and commitment to provide curated financing solutions for our clients is supported by effectively managing the market and credit risk associated with lending against shares.
The key aspects of the loan facilities are guided by an assessment of the quality of collateral, loan-to-value, financing required, tenor, market dynamics, and borrower’s credit worthiness.
- The assessment of the collateral takes into consideration our internal views (with CFIL being part of the larger Citigroup franchise), in addition to having credit consultations with the borrower.
- The collateral analysis covers for the quality and trading characteristics of the security and CFIL’s ability to liquidate the security in an event of default.
- The market dynamics include our cost of funds, macroeconomic factors and the competitive environment for SES financing packages.
- Vintage of our client relationships and existing performance is also evaluated as part of our due diligence.
CFIL advances loans against completed/ operational real estate assets, through its Commercial Real Estate Financing Product (CRE). CRE loans are advanced against mortgage of real estate assets and based on value and income potential of such assets. Advancing CRE loans from CFIL are subject to our internal credit risk approvals.
CRE Loans are advanced mostly to corporate borrowers. The terms and condition of the loan are mutually agreed between the borrower and CFIL. Proposal is communicated through exchange of term sheet and receiving acknowledgement from the borrower.
Term sheet captures CFIL’s proposal with interest rate applicable to the loan, loan amount and tenor of the loan, in case of floating rate loans, benchmark to be used as well as reset frequency, and other indicative terms and conditions applicable for such loans.
Citicorp Finance (India) Limited offers loan against securities in the form of a term loan facility at attractive rates. This is secured against pledge of financial securities like equity shares/mutual funds/bonds from a pool of pre-approved list of securities. The loan facilities are sanctioned on the basis of the credit appraisal of the borrower. The standard tenor of the loan is 3 years and the Loan to Value of the securities could vary from 50% to 70% on a case-to-case basis. The interest rate is fixed and it is to be serviced as per the scheduled dates as mentioned in the loan documentation.