SCHEME NO. : 1

 

 

  1.

Name of the Scheme

PROJECT LOAN

 

  2.

Purpose of Loan

 

For setting up of new project(s)/ expansion/modernization/diversification. Investment in land, buildings, plant & machinery, misc. fixed assets, margin money for working capital, etc.

 

  3.

Eligibility Criteria

 

Minimum project cost of Rs. 1.00 crore for new industrial, commercial & infrastructural project(s).

 

  4.

Loan Limit

 

Rs. 4.00 crores; Loan of higher amount considered on selective basis on merits.

 

  5.

Security Margin

 

Minimum 25%

 

  6.

Promoters' Contribution

 

Minimum 30%

 

  7.

Debt Equity Ratio

 

Financial parameters of security margin (not less than 25%) and DSCR (1.5) shall be maintained. However, present norms for debt equity ratio shall stand amended accordingly.

  8.

Interest Rate

 

Prevailing interest rate.

  9.

Repayment Period

 

7-8 years in quarterly installments including moratorium of 1 year, depending on cash flow of the project.

 

10.

Rebate on Timely Payment

 

As per prevailing policy - 2% wef 16.07.2009.