SCHEME NO. : 10
|
1. |
Name
of the Scheme |
SHORT TERM LOAN TO EXISTING GOOD BORROWERS |
|
2. |
Purpose
of Loan |
For meeting various
requirements including the working capital needs. |
|
3. |
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.
The net worth and turnover of applicant shall be in the band of Rs. 25-50 lacs and Rs. 100-200 lacs respectively
depending on the amount of loan sought for in the band of Rs.
1-100 lacs e.g., for loan of Rs.
50.00 lacs the applicant should have net worth of
at least Rs. 37.50 lacs
and turnover of Rs. 150.00 lacs. iii. The borrower should
have two years track record of consistent turnover and cash profits with good
financial position. iv. The borrower should
have two years satisfactory repayment record with the financial institutions
/ banks. v. The overall debt to
equity ratio of the company / firm should not exceed 1.5: 1. vi. Borrowers availing
financial assistance under this scheme shall not be eligible under incentive
scheme for good borrowers. |
|
4. |
Loan
Limit |
Not exceeding Rs. 100 lacs. |
|
5. |
Security
Margin |
Minimum 25% |
|
6. |
Interest
Rate |
1% less than the prevailing
rate of interest. |
|
7. |
Repayment
Period |
Not more
than 1 & 1/2 years including the moratorium period that shall not be more
than 3 months. |
|
8. |
Up-front
fee |
0.5% of the amount of term
loan sanctioned. |
|
9. |
Facility
to pre pay |
Facility to pre pay the
term loan without levy of prepayment premium |
|
10. |
Rebate
on Timely Payment |
As per prevailing policy -
2% wef 16.07.2009. |