Private Builders, developers are eligible for loan assistance for construction of housing and commercial projects for sale to general public, industrial units and corporate entities for their own use. The builders with proven sound financial and marketing track record of atleast 03 years with rising turn over and profits would be eligible.

PROMOTER’S CONTRIBUTION

50% of the cost of project which will include cost of land, cost of land development, building construction with all internal services capitalized, interest on investment during construction period. The debt equity ratio is to be maintained at a maximum of 1:1.

SECURITY

i] The Corporation shall hold Ist charge on all the tangible assets/collateral security.

ii] All promoter director shall have to give their personal guarantee for repayment of loan to the entire satisfaction of the Corporation.

iii] Any shortfall in security debt ratio shall be met by obtaining adequate collateral security in shape of immovable assets of urban area/liquid security.

iv] The loan is to be secured by way of legal mortgage of land and super structure, collateral security and personal guarantee of all promoters. Security devt ratio is to be maintained above 2.5:1. The financing would be done under obligatory rule, whereby the borrower should open an Escrow account, wherein all proceeds received from the customer would be deposited. UPFC would be paid agreed amount out of this Escrow a/c. towards repayment of term loan and interest thereon. At the time of sale of apartments, NOC from UPFC will be mandatory.

REPAYMENT PERIOD:

Total repayment period would be between 36 months to 60 months with gestation period of 12 months. The repayment will be in the shape of quarterly installments.

EXTENT OF LOAN:

Up to Rs. 100.00 lacs to proprietor, partnership concern having adequate experience of construction activities and up to Rs. 300.0 lacs to Private Limited, Public Limited Company being promoted by existing reputed builders with proven tranck record. Trust. Cooperative societies and other entities not mentioned above shall not be eligible.

INTEREST RATE:

The interest rate under the scheme will be 16% or as may be revisied from time to time. In case of default the borrower would be required to pay penal interest @ 3.5% p.a. on defaulted amount for defaulted period.

PROCESSING FEE AND SERVICE CHARGES:

As applicable in normal cases of FATL & WCTL will be applicable in this scheme also.

OTHER MANDATORY CONDITIONS

1. Before release of the Ist loan installment the borrower, the bank [Escrow account Agent] & UPFC will sign an Escrow Account agreement in the form and substance satisfactory to the UPFC.

2. The promoter will not be allowed to appropriate or use any receipts in the project funded by UPFC for any other purpose till UPFC loan with interest thereon and other dues are fully paid.

3. The approved building plan from the local authorities shall be required before legal documentation.

4. The precise & location proximity to the community facilities and amenities viz. shop, educational and health facilities recreation, entertainment etc. shall be the major requirement for consideration under the said scheme.

5. All statutory approval like site development, land use, layout, building design, provision of essential services i.e. water supply, electricity, sewage disposal system, fire fighting equipments and clearance from civil aviation authorities shall be required from the competent authorities before documentation.

6. The project wherein the construction work has already commenced prior to 12 months shall be considered only on merits.

7. Only those proposals shall be considered in which builder submits the revenue model for guaranteed cash inflow by getting assigned the rent of existing buildings owned by builder or inflow from sal of existing unit of building/complex etc. to ensure the repayment of loan under this scheme.

Initially the Corporation shall finance the project under this scheme in the following areas:-

   Agra, Bareilly, Ghaziabad, Kanpur, Lucknow & areas falling under the
   jurisdiction of Noida & Gr.Noida. The scheme shall be operative only
   after getting approval of the same from SIDBI to ensure refinance.