INCENTIVE SCHEME FOR GOOD BORROWERS

1	Purpose of Loan	Fresh Loan sanctioned by the corporation for meeting various financial needs of the borrower (excluding Real Estate Projects).
2	Eligibility Criteria	i. Existing good borrowers of RIICO as well as other financial institutions classified as standard assets as on close of the financial year. ii. Borrowers having networth not less than Rs.1.00 crore and annual turnover of the company/concern is not less than Rs.1.00 crore as per the last audited annual accounts. iii. The borrower should have three years track record of consistent turnover and cash profits with good financial position. iv. The borrower should have three years satisfactory repayment record with the financial institutions/banks. v. The portion of plant and machinery and miscellaneous fixed assets shall be secured additionally by collateral security, the value of which shall be in the same ratio in which the term loan is being considered for financing the project. OR The promoters' contribution in the proposed project should be minimum 30% of the project cost. OR The overall debt to equity ratio of the company/firm should not exceed 1.25:1.
3	Loan Limit	Not less than Rs.50.00 lacs.
4	Interest Rate	1.0% less than the prevailing rate of interest.
5	Rebate on Timely Payment	As per prevailing policy - 1.5% wef 16/04/2007
		Notes: 1. Existing borrowers having loan account(s) with the Corporation can avail incentive under this scheme provided the loan account (s) is classified in the standard assets category and repayment of at least 8 quarterly principal instalments including the moratorium period or completion of 3 years from the date of first payment of quarterly interest, whichever is later. 2. Existing borrowers availing rebate under Graded Interest Rebate Scheme (GIRS) shall have option to switch over to this scheme, if otherwise eligible. Combined benefit shall, in no case, be more than the benefit available under this Schieme.