S E R V I C E S

Equipment Refinance

Hire Purchase

Working Capital Term
Loan Scheme

Short Term Loan

Foreign Currency Loan &
Brand Equity

Merchant Banking

Factoring

Equipment Lease Finance

Units for Sale

Regional Offices

SHORT TERM LOAN SCHEME

This scheme is meant for meeting short term funds requirement of existing borrowers, having good track record of profit and repayment, like working capital requirement to execute large work orders within short time, to meet temporary working capital shortage, development /expansion of new markets/products, margin money for opening of LC till the sanction and release of funds from financial institutions for capital goods or for imported raw material etc.

1. ELIGIBILTY CRITERIA

  1. The borrower should be engaged in manufacturing activity, have been in operation for more than 3 years and also be in profit during the last two years after providing depreciation and interest.
  2. The borrower should not be in default on payment of dues of the Corporation. Bank or any other financial institutions. The borrower shall also have to submit certificate from a Chartered Accountant indicating therein that it is not in default to any Financial Institution/Bank as on that date.
  3. Leasing and finance companies shall be outside the purview of scheme.

2. AMOUNT OF ASSISTANCE :

The amount of assistance shall be minimum of Rs. 10.00 lacs and a maximum of 60.00 lacs.

3. SECURITY

a) Personal guarantee of the partners / directors.

b) Loan Agreement with the Corporation alongwith Demand Promissory Note.

c) Post dated cheques for interest as well as principal repayment.

d) The loan shall be secured either by extension of charge on existing assets mortgaged with the Corporation or by way of collateral security to entire satisfaction of the Corporation. Minimum security cover of 150% shall have to be maintained in each case. Valuation of the collateral security shall be done by the Corporation as per its norms.

4. INTEREST RATE :

Interest rate @ 19.0% shall be charged on outstanding loan compounding on quarterly basis.