Parameter Product features
Target Group Vendors (Suppliers/Contractors) of Indian Railway (IR) opting for LC payment.
Purpose For build-up of current assets needed for business purpose, short term working capital
Nature of facility Fund Based Working Capital by way of Working Capital Demand Loan will coincide with the milestone payment of LC
Assessment of credit limits Sanction and disbursement of loan is based on the terms of LC order/ terms of the contract. If the milestone achievement or progress of works is stipulated, then limits to be assessed and released accordingly. This facility will be available exclusively for Railway order.
Eligible Customers
  • i. New Customers/units.
  • ii. Existing customers already availing credit facilities from us.
  • iii. Takeover of existing units from other Banks/FIs with satisfactory track record.
  • With collateral security 20% and above: Repo Linked Lending Rate (RLLR) + 2.45%
  • Without collateral security: Repo Linked Lending Rate (RLLR) + 2.95%
Margin For working capital limits assessed against LC issued by Indian Railways – 10%
For Limits, other than Railway orders backed by LC – As per Banks extant instructions
Interest rate From 150 to 250 bps above MCLR i.e. from 9.75% to 10.75% as per rating [present MCLR 8.25% w.e.f. 07.08.2019]
Other charges / Penal charges As per Bank’s instructions from time to time
Primary Security:
Hypothecation charge over current assets of the unit/company. No second charge or Pari-Passu charge will be extended for other Bank/FIs on the portion of Current Assets financed by our Bank.
Collateral Security:
All eligible loans for limits upto Rs.1.00 crores for Traders and Rs.2.00 crores for manufacturers to be covered under CGTMSE, borrower to bear the guarantee fee of CGTMSE. Otherwise, SARFAESI compliant collateral security, minimum upto 20% of limit sanctioned to be made available.
Loan Amount Minimum Loan Amount: > Rs.10 lacs
Maximum Loan Amount: Rs.50 crores
Guarantee Personal Guarantee of Promoters/Partners/Directors of the unit.
Repayment Repayable on demand, However, limit will be sanctioned for one year.
  • Repayment and liquidation of WCDL facility will coincide with the milestone payment of LC.
  • All the transactions should be routed through current account / cash credit of the borrower.
  • Interest should be serviced regularly as and when applied.
  • No over-drawings permitted.

Further details: Please contact SBI IRLC Cell at New Delhi Main Branch;

Phone No.: 011-2337 4115; 2337 4116