SCHEME NO. : 3
|
1. |
Name
of the Scheme |
WORKING CAPITAL TERM
LOAN |
|
2. |
Purpose
of Loan |
To provide medium term loan
for meeting working capital needs of a manufacturing company. |
|
3. |
Eligibility
Criteria |
Profitable
and financially sound companies having good track record and satisfying the
following conditions: 1.
The company should have been classified as standard asset of the Corporation. 2. The company should have
paid atleast 30% of the principal amount of term
loan disbursed. 3. The company should be in
production for the last 3 years having earned cash profits in the last 2
years. 4. The company must have
consistently recorded growth. |
|
4. |
Loan
Limit |
Maximum
of Rs. 2.00 crores
subject to ceiling of aggregate term loan of Rs.
4.00 crores. Loan amount should not exceed the
amount of term loan repaid by the company. |
|
5. |
Security
Margin |
Minimum
25% |
|
6. |
Promoters'
Contribution |
NA |
|
7. |
Debt
Equity Ratio |
1.5: 1 |
|
8. |
Interest
Rate |
Prevailing interest rate. |
|
9. |
Repayment
Period |
5 years in quarterly
installments including moratorium period not exceeding 6 months. However, the
corporation will have an option of accelerated repayments in initial years
depending upon the repayment capacity of the borrowers. |
|
10. |
Mode
of Payment |
Post dated cheques of principal & interest. |
|
11. |
Rebate
on Timely Payment |
As per prevailing policy -
2% wef 16.07.2009. |