Fund Based Facilities
PROJECT FINANCE/TERM LOAN

Objective: to promote long-term finance for new projects and expansion, diversification and modernization of existing projects.
Types of Assistance: Long term loan, underwriting, direct subscription to equity capital, and deferred payment guarantee.
Eligibility: Any industrial/development organizations
Promoters’
Contribution: 30% of the project cost minimum normally expected.
Debt Equity Ratio: Maximum up to 70:30.

Based on minimum term lending rate fixed from time to time.
Actual rate within the prevailing rate band depends upon creditworthiness of borrower and risk perception.
Interest is payable quarterly.

Service Charge: 1.50% on total loan approved, only one time prior to disbursement.
Security: Registered mortgaged over entire project including all the movable and immovable assets, present constructions and construction to be made in future.
Additional collateral as required,
Hypothecation of stock-in-trade,
Assignment of bills and account receivables,
Personal guarantee, and
Corporate guarantee as required.
Tenure 1 –5 Years
Repayment:
In quarterly installment to be fixed on case to case basis depending on projected cash flow of the borrower.
In the event of non-payment of any installment or in the event of any other irregularity continues, in such a situation a penalty will be levied as per the FI’s regulations.

Documentation:
Loan Agreement Paper.
Hypothecation Deed.
Personal Guarantee from major promoters.
Corporate Guarantee.
Promissory Note.
Internal Loan Commitment Paper.
Registration/Tax Clearance Certificates including (VAT).
Articles of Association and Memorandum of Association.
Loan Authorization Letter.