SCHEME NO. : 2

 

  1.

Name of the Scheme

EQUIPMENT FINANCE SCHEME (EFS)

 

  2.

Purpose of Loan

 

Providing quick finance to well establish industrial units for acquisition of capital goods/ equipments not related to any specific project both indigenous and imported.

 

  3.

Eligibility Criteria

 

Existing industrial concern(s) having good track record and sound financial position. The unit concerned should ;

 

1. Have been in operation for at least 4 years.

2. Have earned cash profits and/or have declared dividend on equity shares during preceding 2 financial years.

3. Not in default to financial institution(s)/ bank(s) in the payment of its dues.

 

  4.

Loan Limit

 

Maximum of Rs. 4.00 crores under EFS.

 

  5.

Security Margin

 

Minimum 25%

  6.

Promoters' Contribution

 

Minimum 22.5%

 

  7.

Debt Equity Ratio

 

1.5: 1

 

  8.

Interest Rate

 

Prevailing interest rate.

 

  9.

Repayment Period

 

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

10.

Rebate on Timely Payment

 

As per prevailing policy - 2% wef 16.07.2009.