1. Scheme
: The Scheme will cover
assistance for purchase of Capital goods
/ Equipment by existing units with good
track record.
2.
Purpose : Assistance under the scheme will be for
purchase of identifiable item of plant and
machinery and other equipment including
energy saving systems for modernisation
/ expansion / balancing / replacement. Machinery
/ Equipments imported directly will also
be eligible.
3.
Eligibility : Assistance under the scheme will be available
to existing industrial units complying
with the following norms:-
- Have been in operation
for at least 3 years.
- Have earned profits
and / or declared dividend on equity shares
during the preceding two financial years
and;
- Not be in default to
institution / banks in the payment of
their dues.
- Have positive
networth
- Units having
sound financial position.
4.
Quantum of Loan :
Assistance under
the scheme may cover upto 85% of the cost
of Capital goods / equipment to be acquired,
from Rs.5.00 lakhs to overall ceiling of
Rs.1000 lakhs.
5. Debt Equity
Ratio : The overall Debt
Equity Ratio under the scheme should not
exceed 2.00 : 1.00 (overall).
6. Repayment
period : The repayment period
of principal will range from 3 years to
5 years including a holiday period ranging
from 3 months to 12 months.
7. Security :-
- Primary Security:-
-
Loans granted under the scheme may be
secured by way of hypothecation of capital
goods / equipment financed.
- Collateral security:-
-
Collateral security
shall be offered by way of immovable
property.
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