SCHEME NO. : 6

 

  1.

Name of the Scheme

FLEXI LOAN FOR HOTELS, HOSPITALS & NURSING HOMES

 

  2.

Purpose of Loan

 

Providing quick finance with flexibility in utilization of loan to well established units in tourism and health care sector for upgrading, face lifting, modernization, renovation, additions, etc. at the existing facilities having investment in civil works, land - scaping, interiors, furniture, equipments, etc.

  3.

Eligibility Criteria

 

Existing unit(s) having good track record of performance and sound financial position, which;

 

i.  have been in operation for the last 3 years.

 

ii. have earned cash profits in the preceding 2 financial years.

 

iii. not in default to financial institutions/

banks in the repayment of their dues.

 

iv. DSCR after the proposed assistance is above 1.5:1.

 

  4.

Loan Limit

 

Maximum of Rs. 1.00 crore subject to total debt exposure in the unit including the amount of proposed assistance shall not exceed the sum of prevailing reserve price of land and valuation of building as per certified valuer.

 

  5.

Security Margin

 

Minimum 25%. Loan upto 75% of the cost of modernization, upgradation, renovation, additions, etc.

 

  6.

Promoters' Contribution

 

Minimum 25%

  7.

Debt Equity Ratio

 

1: 1 (after availing the loan)

 

  8.

Interest Rate

 

Prevailing interest rate.

 

  9.

Repayment Period

 

In 5 years in quarterly installments including moratorium of 6-12 months depending upon repayment capacity.

 

10.

Rebate on Timely Payment

 

As per prevailing policy - 2% wef 16.07.2009.