About UPFC

The scheme of re-sanction of Working Capital Term Loan was introduced by the Corporation in the year 1995 with a view to help entrepreneurs maintain their working capital level without much problems for smooth running of units. Certain modification were introduced subsequently based on the experience of the Corporation in operation of the scheme. The scheme received very encouraging response from out borrowers. However, entrepreneurs who are running seasonal industries have requested a different scheme as their working capital funds are required mainly during the season of that particular activity and they have to unnecessary bear interest cost for the fully year making their operations less competitive in market. We have, therefore, devised a scheme for re-sanction of working capital for only seasonal industries, viz; cold storage, rice mills, dall mills etc., where borrowers will have an option to prepay the loan amount (during the off-season) and get in re-sanctioned during season.

1] ELIGIBILITY CRITERIA

(i) The party has been consistently regular in repayment of loans and have not diluted the security already mortgaged to the Corporation.

(ii) Existing Working Capital term Loan has been substantially repaid, but there is some outstanding balance in the account.

(iii) Corporation will have 1^st charge on the prime assets and no pari-passu 2^nd charge will be permissible in favour of any Bank/Institution.

2] QUANTUM OF ASSISTANCE

(i) Working Capital Term Loan can be considered for re-sanction only upto the extent of the amount repaid, ensuring there is no dilution of original Security Debt Ratio. R.M. shall have security verified in order to ensure above.

(ii) If the quantum of assistance is more than the amount already repaid the entire proposal will be treated as a fresh case and shall not be covered under the scheme.

3] PROCEDURE

On a simple application of the borrower, the Regional Office would prepare an appraisal note as per enclosed format on the orders of the R.M. > A.G.M.

4] SANCTIONING AUTHORITY

The Regional Managers / Asstt. General Manager will be the Sanctioning Authority under the scheme. However, if any R.M. /A.G.M. re-sanctions a case in violation of [a] Eligibility Criteria or [b] Quantum of assistance, thery shall be held personally responsible and liable for disciplinary action.

5] CURRENCY OF LOAN

Total Currency of re-sanctioned loan will not exceed the currency period of WCTL sanctioned by the I.C. /S.L.C. a part of which is being re-sanctioned. However, R.M. / A.G.M. can re-sanction as many times as deemed fit within the currency of loan as per terms and condition of the scheme.

6] MAIN TERMS OF THE SCHEME

[i] No processing fee, Legal Fee and Service Charge will be levied.

[ii] Annual Supervision Charges will be levied @ 1% on amount outstanding on proportionate period on monthly basis.

[iii] Legal Documentation will be done for extension of charge incorporating various terms and conditions on a simple format to be designed by Law Department, H.O..

[iv] As per the Standing Circular, no pre-payment premium shall be applicable in seasonal industries.

7] RECORD KEEPING

[i] After a loan re-sanctioned by the R.M./A.G.M., a copy of the note be sent to the Project Division who in turn will put up the same for information of the I.C./ S.L.C., as the case may be.

[ii] Complete records regarding re-sanction will be maintained by the Regional Office concerned and they will do pasting etc. of original appraisal notes and orders of re-sanction as per norms.