SCHEME NO. : 7

 

  1.

Name of the Scheme

CREDIT SCHEME FOR BUILDERS/ COMMERCIAL/RESIDENTIAL COMPLEXES

 

  2.

Purpose of Loan

 

§        To provide quick finance to builders to take up commercial/ residential complexes to meet the land cost, civil works and utility equipment like lift, DG Set, etc.

§        For purchase of land from local authority/Govt. authority/RSHB/ RIICO and private parties.

 

  3.

Eligibility Criteria

 

Assistance would be available to promoters / units having :

 

§        Clear, valid and mortgageable land title.

§        Approved building plan from appropriate local authority.

§        Satisfactory credit reports and/or record of repayment with financial institutions/banks.

 

  4.

Loan Limit

 

§        Not more than 1.5 times of actual promoters' contribution.

§        Upto 80% of land value (excluding registration charges) purchased from local authority/Govt. authority/RSHB/ RIICO (60% of cost of land or valuation as per DLC rates, whichever is less, for land purchased form private parties within municipal limits of Divisional Headquarters)

 

  5.

Security Margin

 

Minimum 25%

 

  6.

Promoters' Contribution

 

Minimum 40%

  7.

Debt Equity Ratio

 

1.5 : 1 (after availing the loan)

 

  8.

Interest Rate

 

Prevailing interest rate (Without benefit under the Incentive Scheme for Good Borrowers)

 

  9.

Repayment Period

 

5 years in quarterly installments with moratorium of 6-12 months.

 

10.

Mode of Payment

 

§        Repayment through an escrow account* in which the sale proceeds/rental income of the building/ area shall be deposited. NOC for transfer of title in favour of purchaser will be issued after deposition of 60% of sale proceeds as envisaged or actual, whichever is higher.

§        No prepayment premium shall be charged for prepayment out of sale proceeds of proposed complex.

 

11.

Rebate on Timely Payment

 

As per prevailing policy.

 

12.

Revival of Credit Facility

After full or part repayment of term loan, the borrower shall have option to request for revival of credit facility to the extent of loan repayment. The Corporation shall consider revival of such facility on payment of revival charges @ 1 % of the loan amount. The loan revival shall be at the prevailing Interest rate.

 

 

 

* Escrow account is opened by the borrowers in its bank for deposition of designated sale proceeds.