Preliminary Information:
A separate cell has been established to provide assistance and guidance to the entrepreneurs in respect of the procedure, norms or any other aspects pertaining to the availment of financial assistance for the projects that can be considered by EDC Limited. If the project falls in the category for financial assistance, this cell provides the application form for term loan assistance to be considered for preliminary clearance.

Preliminary Clearance:
The preliminary application form is a simple form seeking the salient aspects of
a) Promoter's background, experience, details and accounts of sister concerns.

b) Project details incorporating all the technical aspects mainly product, capacity, location, technology, raw materials, utilities, manpower, etc.

c) Project cost and means of finance.

d) Details of land and consents if any.

e) Market, demand supply and selling arrangements.

f) Expected turnover, break-even point and financial viability.

g) Reference, bankers, collateral securities, etc.

The applicant has to pay application fees to the Corporation along with the application form as follows:
Loans below Rs. 2 lakhs - Rs. 100/-
Loans above Rs. 2 lakhs upto Rs. 5 lakhs - Rs. 500/-
Loans above Rs. 5 lakhs - Rs. 2000/-

PCC officer holds discussions with the applicant, scrutinises the application and prepares an agenda item along with comments thereon. The proposal is then placed before the approving authority.

Approving Authority:
The applications below Rs. 5 lakhs for new cases and below Rs. 20 lakhs for expansion, diversification, equipment finance, extended credit, etc. is placed for approval to the General Manager (Loans).

All other applications are placed before the PCC Committee for preliminary approval.

The PCC Committee is chaired by the Managing Director. Other members of the Committee are CGM, GM (Loans),
GM (Recovery), GM (Resources), DGM (Law), and DGM (Loans) as PCC Officer.

PCC Officer is the Member Secretary of the Committee. The Committee normally meets once a week preferably on Friday. The PCC Officer issues the preliminary clearance letter along with conditions stipulated therein if any within a week's time after the approval of the Minutes of the Meeting/or approval by the concerned General Manager.

This letter of approval is accompanied by the detailed application form along with formalities to be complied with. If the application is rejected/closed/withdrawn at PCC level, the application fees will not be refunded.

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