Dealer Finance

Strengthen Your Dealership Network with South Indian Bank

South Indian Bank’s Dealer Finance Program provides a seamless financing solution for businesses looking to optimise their dealership operations, enhance liquidity, and support dealer relationships. Designed for corporates and their direct dealer networks, this facility offers structured financial support, hassle-free processing, and flexible repayment options to ensure smooth business operations without disruptions.

Key Features and Benefits

Comprehensive Financing Support

Flexible Loan Limits

Secured and Transparent Transactions

Competitive Interest Rates

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What is Dealer Finance?

South Indian Bank's Dealer Finance facility is meant for direct dealers who are recognized by corporates and sanctioned by the bank. This financial solution extends funding between Rs. 0.10 Crores to Rs. 20.00 Crores, ensuring adequate working capital to effectively meet their stock procurement needs. The security includes hypothecation of stocks or goods making it a transparent and reliable financing facility. The facility exists with a Memorandum of Understanding (MoU) between the corporate and bank, ensuring uninterpreted financial support.

Here is the eligibility criteria for Dealer Finance facility:

Flexible Loan Limits – Finance from Rs. 0.10 Crores to Rs. 20.00 Crores, to accommodate diverse business needs
Secured and Transparent Transactions – Major security involves hypothecation of commodities or stocks bought from advances from banks
Competitive Interest Rates – Low-cost financing based on the credit rating and strength of the dealer
Flexible Payment Terms – Tailored repayment schedules, including bullet repayments or regular repayments tied to dealer cash flow
Dedicated Software Support - Software support with user interface provided to Corporate & Dealer

Criteria	Requirement
Corporate MoU	Dealer finance is available only for corporates with a Memorandum of Understanding (MoU) with the bank
Dealer Assessment	Dealers must meet South Indian Bank’s credit assessment criteria
Dealership Status	Dealers must hold valid dealership licenses and contracts for the supply of goods
Primary Security	Hypothecation of Stock/ Goods procured out of bank finance. (In case of dealer having Multiple Banking Arrangements, Pari-Passu charge to be created to the extent of Bank's finance. Specific charge also may be considered if the goods financed by the Bank can be separately identifiable from the dealer's common inventory and free from any common charge)

Document Type	Required Documents
For Corporates (Principals):	Expression of interest Yearly audited financials Periodical list of dealers along with their names & addresses to whom the bank may finance
For Dealers:	All necessary KYC documents Copy of Dealership License issued by the company Past 2 years Balance Sheet and Profit & Loss Account (previous year provisional, if audit is not completed) Past 12 months bank account statement Estimated Balance Sheet and Profit & Loss account for the current year&ensuing year

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Interest Rates

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Additional Charges

1% for each Dealer, No processing charge for Corporate

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Online Application:
- Enter your details here and our representative will connect with you

Offline Application:
- Visit Your Nearest Branch – Discuss your business needs with our loan officer. Branch locator
- Complete the Application Process – Submit the necessary paperwork for verification
- Approval & Disbursal – Once approved, funds are made available quickly