To increase the global presence and to enhance the growth, Yantra Harvest Energy Private Limited (YHEPL), an energy service company, found a term loan of INR100 million by the Small Industries Development Bank of India. YHEPL has mortgaged all its existing assets to the Urban Cooperative Bank towards working capital, the bank is concerned about the fact that the loan will be used to generate assets at the premises of YHEPL’s clients.
Determining the various issues and the nature of the cash flow of the company, the bank considering to form an appropriate financing product and determining that whether it would be beneficial to finance such energy efficiency projects. The writer, M Manickaraj, has affiliation with National Institute of Bank Management.