General Term Loan Scheme

GENERAL  TERM  LOAN  SCHEME PURPOSE OF LOAN
To provide financial assistance to small scale and medium scale units  for setting up  projects of eligible industrial activities for acquiring fixed assets like land, building, plant & machinery and other miscellaneous assets.
ELIGIBILITY
1. All units set up as micro, small, medium and large enterprises and services sector.
2. Existing industrial concern/enterprise and service sector units for expansion/ modernization/ diversification/renovation.
3. Tourism related activities (viz restaurants, hotels, tour agencies etc.), health care units (viz clinics, diagnostic centers, hospitals, nursing homes etc), renewable energy, energy saving systems, barges etc. and other eligible commercial (eg. warehouse, cold storage, etc). and industrial activities could also be considered for financial assistance.
4. The loan amount shall be utilized for creation of fixed assets, take-over/repayment of outstanding loans (only standard assets) of applicants from other banks/institutions against fixed assets acquired, during the past 18 months.
5. The proposed property to be mortgaged, should not be presently leased out/rented out and should not be leased out/rented out in future without the permission of the Corporation.
6. The repayment history & past dealings of the promoters/unit /sister concerns/group concerns with the Corporation/Banks/FIs should have been satisfactory and the loan account classified as standard for past two consecutive years with bank/financial institution in case of takeover of loans.
7. The applicant should furnish all the required approvals andbe agreeable to mortgage its immovable property as prime security and hypothecate its moveable assets with first charge to the Corporation or on parri-passu basis in case of consortium finance.
AREA OF OPERATION
State of Goa and the Union Territories of Daman & Diu and Dadra and Nagar Haveli.
QUANTUM OF LOAN
The maximum amount of loan shall be subject to the following limits:
Proprietory concerns                                                        Rs.200.00 lakhs
Partnership firms                                                              Rs.400.00 lakhs
Corporate bodies/ Limited liability Partnership          Rs.750.00 lakhs
The loan assistance shall be considered subject to the unit providing adequate security with the project being technically feasible and financially viable as per the norms and guidelines of the Corporation. The actual amount of loan sanctioned shall be decided by the Corporation.If the requirement of the loan for a project is in excess of the above limits the Corporation may consider enhanced amount(with additional immovable security) for such projects or the same could be met in consortium with other Financial Institutions/Banks.

MAXIMUM DEBT-EQUITY
For loans upto Rs.10.00 lakhs         3:1
For loans above Rs.10.00 lakhs       2:1
MARGIN ON SECURITY
The minimum margin on the primary security shall be 25%.
However, higher margin would be stipulated based on project  viability and security provided.
SECURITY FOR LOAN
The loan shall be secured as per the norms (not less than 100% immovable security cover) of the Corporation by first charge of the Corporation on the following security with clear marketable title:
Primary: The assets financed i.e. land, building &machinery, etc.
Additional/Collateral: Commercial or residential non agricultural immoveable properties or any other security acceptable to the Corporation on case-to-case basis, if required.
Personal Guarantee of the promoters/directors/a suitable person of sound financial means, etc. could be insisted in addition to the above wherever felt necessary by the Corporation.
PROCESSING FEES
1% of the loan amount subject to maximum of Rs. 2.00 lakh  (plus service tax as applicable).
The processing fees to be paid shall be as follows:
Preliminary application: Rs.10,000.00 (plus service tax as applicable)
(For loans between Rs.5.00 – Rs.10.00 lakh, the fees payable shall be Rs.5000.00 plus service tax as applicable)
Final application: Total processing fees payable less fees paid earlier.
All the processing fees are non-refundable.
INTEREST RATE
Term Loan upto Rs.50.00 lakh -                                   11.5% p.a.(Fixed)
Term Loan above Rs.50.00 lakh  to Rs 100 lakhs-     11.5% to 13.50% p.a.    
Above Rs 100 lakhs                                                         11.5% to 14.5%  pa
The interest rate shall be decided based on the Credit Rating of the applicant as per the Corporation’s guidelines.
LOAN REPAYMENT
The loan is repayable within 8 years including a moratorium period upto 2 years, depending on repayment capacity of the project. The repayment will be in monthly/quarterly installments.
GENERAL
1. The minimum promoter’s contribution shall be 25% of the project cost.
2. The loan shall be disbursed after execution of legal documents and compliance of terms of sanction/ disbursement formalities. The loan disbursement shall be in proportion to the investment made on land, building, machinery etc and as per other terms and conditions governing the sanction.
3. The loan proposal shall be considered on its own merit and mere compliance of the eligibility and other criteria may not  entitle the applicant for sanction of loan.

 

Download PDF

Advertisement

Get in touch