SCHEME NO. : 8
|
1. |
Name
of the Scheme |
MEDIUM TERM LOAN AGAINST SECURITIZATION OF FIXED
ASSETS |
|
2. |
Purpose
of Loan |
§
To enable
financially sound profitable units with zero/low debt components, to raise
funds for investment in their unit(s) or associate concerns for new
/expansion / diversification projects(s), balancing equipments, working
capital needs, market / export development programmes,
construction of corporate office/staff colony, repayment of costly debts of
the associate concern(s), etc. |
|
3. |
Eligibility
Criteria |
§
The company
should be in production for atleast 5 years and
earning cash profits for atleast 3 years. §
The company
should have satisfactory record of repayment with the financial
institutions/banks and unit should have been classified as standard asset as
at the end of previous financial year. §
The company
should have repaid atleast 75% of the principal
amount of term loan disbursed to it in last 8 years. §
The performance
of the industrial sector to which the unit belongs is satisfactory and has
not declined in th last
three years. §
The technology
being used by the industry is in tune with the current trends. §
Debt Service
coverage ration of the company after the proposed assistance is not less than
2:1 |
|
4. |
Loan
Limit |
30%
of the value of fixed assets and the total term loan repaid by the unit
subject to maximum of Rs. 2.00 crores. |
|
5. |
Security
Margin |
Minimum 25% |
|
6. |
Promoters'
Contribution |
- |
|
7. |
Debt
Equity Ratio |
1 : 1 (after availing the
loan) |
|
8. |
Interest
Rate |
Prevailing
rate of interest. |
|
9. |
Repayment
Period |
Not more than 6 years in quarterly
installments including moratorium period which shall not be
more than 12 months. |
|
10. |
Mode
of Payment |
Post dated cheques of principal & interest. |
|
11. |
Rebate
on Timely Payment |
As per prevailing policy -
2% wef 16.07.2009. |