About UPFC

ELIGIBILITY
All concerns, which have been in existence for 4 years and have earned profit in the last 3 years and which have not defaulted in payment of dues of any financial institution or bank, are eligible for assistance under the scheme.

RATE OF INTEREST
The rate of interest would be 14.00 for A&B + (SSI) and 15% for A&B+ (Other then SSI) as in E.R.S.. The service charge @ 10% sanction of Term Loan shell be payable in live of upfront fee on or before disbursed of loan.

SANCTIONING POWERS

The I.C. is empowered to sanction loans upto 150.00 lacs under the scheme.

DEBT EQUITY RATIO
The debt equity ratio would normally not exceed 2:1 as in E.R.S. cases.

The loan would be sanctioned for the purchase machinery old plant and machinery whether imported or indigenous, would also be eligible for assistance, provided the Corporation has satisfied itself that useful life of plant and machinery proposed to be financed is not less than 10 to 12 years, but definitely not less than the repayment period of the loan. Apart from cost of Equipments other expense like transportation, installation & errection charges, may also be considered for financing.

DIFFERENCE BETWEEN E.R.S. & E.F.S.:

While under E.R.S. refinance would be sought from IDBI/SIDBI, the funds under E.F.S. would come from the Corporation’s own resources. While there is a ceiling on the cost of project in E.R.S., there is no such ceiling on the cost of project under E.F.S. Thus the loans of concerns, with bigger projects, which normally, are not refinancable by IDBI/SIDBI can get the assistance, under Equipment Finance Scheme, on terms as favourable as under the IDBI assisted E.R.S.