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| S E R V I C E S
Working Capital Term
Foreign Currency Loan &
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WORKING CAPITAL TERM LOAN SCHEME Click here to view this scheme for Seasonal Industries 1. ELIGIBILITY CRITERIA a) The Scheme is meant for all small scale and medium scale industrial units where net worth of the company /firm (excluding revaluation reserves) does not exceed Rs.10.00 Crores. b) Unit which are not financed by UPFC, should be in operation preferably for a minimum period of 3 years and should have earned profit in the last financial year. c) Units, which have availed working capital from the Banks, would also be eligible. 2. QUANTUM OF ASSISTANCE i) Maximum limit of Working Capital Term Loan to a Company shall be Rs.150.00 Lacs over and above the Term Loans Sanctioned by UPFC, subject to a maximum exposure of Rs.240.00 Lacs. However, in case the borrower being firm (partnership or proprietorship) the maximum limit of Working Capital Terms Loan shall be Rs.90.00 Lacs subject to a maximum exposure of Rs.90.00 Lacs in a case. ii) Security Debt Ratio shall normally be kept at 1.5:1. 3. SECURITY FOR WORKING CAPITAL TERM LOAN WCTL shall be secured by the following security: a) First charge by way of hypothecation of current assets such as raw material, finished goods, stores and spares to be acquired by the proposed Working Capital Term Loan. AND b) Extension of Charge on fixed assets of the unit viz. Land, building and hypothecation of plant and machinery etc. ,or i)First charge by way of mortgage of land and building and hypothecation of plant and machinery etc. ,or ii)First pari-passu charge on the fixed assets of the unit, it the assets are mortgaged to other Institution/Bank. c) Collateral security to cover the Working Capital Term Loan in the shape of liquid security viz. NSC, FDR, quoted shares of Blue Chip Companies, Kisan Vikas Patra etc. or fixed assets in the form of Urban lands property viz. Residential plot/house, commercial shops/plots shall be acceptable. Agricultural land or rural property will not be preferred as the marketability of the same is difficult. 4. RATE OF INTEREST The present rate of interest is 17.0% to 18% per annum for SSI and 18% to 19% per annum for Non-SSI. However, above rates are subject to change from time to time. 5. REPAYMENT PERIOD The loan shall be repayable in 5 years, inclusive of moratorium of 3 months, depending upon repayment capacity of the unit. 6. SANCTIONING AUTHORITY Internal Committee is the sanctioning authority for Working Capital Term Loan cases of all amounts. 7. ANNUAL SERVICE CHARGES The borrower shall pay service charge @ 1% on the sanctioned amount of Working capital Term Loan. 8. PROCESSING FEE The entrepreneurs shall be required to deposit processing fee as given below:
The upfront fee, is payable at the time of Ist disbursement. 9. HOW TO APPLY The entrepreneurs are required to apply for loan on the prescribed application form alongwith the Project Report. Simplified application forms are available at our Regional Offices as well as at the Head Office. |
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