AKF - FAQs
- What does AKF stand for?
Alfalah Karobar Finance
- What kind of financing facility does the Bank provide under
AKF?
Running Finance Facility for procurement of raw material,
finished goods and other working capital requirements of the
business.
- What is the amount of financing offered under AKF?
The amount ranges from 0.5M to 10 M.
- What is the frequency of mark up repayment?
Quarterly mark-up payable within 15 days of its becoming due.
- What is the mark-up rate?
It varies in line with money market trends
- What is the security that I will have to offer to avail AKF?
Urban residential/commercial/industrial properties (third party
collateral also permissible) along with personal guarantees of
mortgagor/partners/directors
- How long is the processing time?
Approx. 20 working days from the date of receipt of complete
Loan Application Form along with required documents.
- What are the associated expenses?
| Processing fee (Up-front
with LAF) |
Rs.2,000/- |
| Documentation charges |
Actual cost of revenue and
special adhesive stamps. |
| Legal charges |
Actual & approved charges
of lawyers on the Bank’s approved panel. |
| Valuation charges |
Actual & approved charge
of valuators on the Bank’s approved panel. |
| Business & Financial
Appraisal charges |
Rs. 4,000/-(approx) |
- Can I simultaneously avail other financing facilities
along with AKF?
Yes, if there is cushion in the security offered and the
projected cash flows of your business
- How many times will I have to visit Bank Alfalah before I
get the amount?
Approx three visits only
(i) To hand over the required documents.
(ii) To sign the agreement
(iii) For disbursement
- What is the minimum length of experience required in the
same line of business?
Three years.
- How is the loan entitlement calculated?
Lowest of amount calculated on the basis of:
40% debt burden in cash flow projections
(Head SME can grant exception up-to 10%)
OR
60% of assessed normal market value of property
OR
35% of annual sales
- How is AKF different from normal Cash Finance offered by
Bank Alfalah and other banks?
- In AKF we do not require stock report, letter of hypothecation
or insurance of stock.
- Only 25% clean up requirement every 6 months as against 100%
in most CF facilities
- Is there an age restriction for availing AKF?
Maximum age limit is 60 years for individuals/sole proprietors
- What is the clean-up requirement under AKF?
After every 6 months adjustment of 25% of approved limit for
2 days
- What are the renewal requirements?
Renewals shall be subject to regular mark-up payments,
clean-up requirement and healthy turnover in AKF account.
- Are financial statements of my business required to avail
AKF?
Minimum for the last year and preferably for the last three
years
- I do not maintain formal books of accounts nor do I
prepare financial statements of my business. Does that make me
ineligible for AKF?
No, even if you have an informal record of business
transactions for last one year Bank Alfalah will arrange the
preparation of formal financial statements
- I have no credit history with any bank. Does it make me
ineligible for AKF?
No, you can still avail AKF if you fulfill other eligibility
criteria
- Can I avail AKF to construct a storage facility for my
stocks which would immediately result in larger cash flows from
my business?
For such financing requirements we would like to introduce
Alfalah Milkiat Finance which is a suitable financing structure
for asset finance
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