Objective

Providing assistance to meet unanticipated investment / urgent expenditure relevant for the growth of the unit. 

Eligibility

• Large and MSME sectors, engaged in manufacturing, processing and preservation activity; the services sector.
• Unit’s constitution: any form, viz., proprietary, partnership and limited company; lower priority for proprietary units.
• All units (assisted & non-assisted), which are in existence for  atleast 5 completed financial years
• They should have been in Standard Asset Category continuously for the past three years in their financier’s accounts.
• They should have registered net profits in the last three years, have positive net worth, and no cumulative losses.
• Average DSCR for the last 3 Financial years to be more than 1.20:1.00. 

Purpose

For any tangible or intangible business need such as capex, servicing new orders, renovation of property / assets, reimbursement against self-financed assets acquired in the last one year, funding of intangibles like brand building/ marketing, R&D, inorganic business growth, or any other bonafide business need, etc.  However, it shall exclude expenditures for speculative purposes like investing in stock markets, commodity trading, commercial real estate activity and an undertaking to be obtained to that effect from the unit.    

However, If the loan is used for creation of any fixed assets relating to their business activity, the charge over those assets shall be created in favour of Corporation. 

In addition to that, the loan shall also utilized for :

a.  To settle the high cost borrowings in order to increase the profitability of the unit.

b.  For purchase of fixed assets including land etc. towards expansion/ diversification/ modernization of existing units i.e. for industrial purpose only. The fixed assets created out of the proposed Corporate loan shall be mortgaged to our Corporation and charge shall be created.

c.  Diversion of funds/withdrawal of promoter’s capital etc. is not permitted under the scheme.

The borrower shall furnish an undertaking before sanction that the Corporate loan shall not be utilized for speculative purposes like investing in stock markets, commodity trading, commercial real estate activity as well as for Diversion of funds/withdrawal of promoters capital etc.

Quantum of Assistance

Maximum of Rs.10.00 crores.  However, the loan amount shall be limited normally based on the nature & value of Collateral security.

Promoter’s Contribution

NIL

Debt Equity Ratio

Not Stipulated

Repayment

7 years including a moratorium of 3 months.

Collateral Security

 Fixed Deposit shall not be accepted as collateral security. 

Considering the highly volatile marketability of agricultural land, the same shall not be accepted as collateral security. 

Third party collateral shall not be accepted under any      circumstances except properties offered by the below mentioned close relatives.

Grandfather / Grandmother / Father / Mother / Son / Daughter / Grandson / Granddaughter / Brother / Sister / Husband / Wife / Father-in-law / Mother-in-law / Brother-in-law / Sister-in-law. 

Personal guarantee of the borrower and owners of property offered as collateral shall be obtained. 

Those already notified by Govt. Authority for acquisition for any other purpose (e.g. widening of Highways) shall not be accepted. 

Those situated in areas with features hindering easy sale-ability (e.g., proximity to burial / cremation grounds, high voltage power cables running across, those with difficult approach roads) shall not be accepted.