SCHEME NO. : 9

 

  1.

Name of the Scheme

CREDIT LIMIT UNDER EQUIPMENT FINANCE SCHEME

 

  2.

Purpose of Loan

 

To cater to the frequent needs of the companies for installation of equipment during its operation cycle.

 

  3.

Eligibility Criteria

 

To profitable and financially sound companies having good track record of operations and repayment.

 

i. Standard asset. No default in repayment during the year.

 

ii. Should have paid atleast one third of the principal amount.

 

iii. Should have been inoperation for the last 3 years and earning adequate cash profits in atleast 2 (including preceding year) out of the last 3 years.

 

iv. Average DSCR 2:1 after the proposed assistance.

 

  4.

Loan Limit

 

Not exceeding Rs. 0.50 crore per year. The loan amount shall also not exceed the amount repaid by the company against term loan to FIs / Bank(s).

 

  5.

Security Margin

 

Minimum 25%

 

  6.

Promoters' Contribution

 

Minimum 30%

 

  7.

Debt Equity Ratio

 

1.25 : 1 (after availing the lmit)

 

  8.

Interest Rate

Prevailing rate of interest.

  9.

Repayment Period

 

Not more than 5 years in quarterly installments and shall be applicable from the date of first availment. The first installment shall be payable from the next quarter of availing the disbursement.