1. The Scheme: The scheme is intended to provide financial assistance for new project or to expand / modernise / diversify the existing project..

2. Eligibility:
All small scale / medium / large scale industries and service sector units are eligible for financial assistance. Proprietary concern, Partnership concern, Private Limited Company and Public Limited Company are eligible for financial assistance.

3. Purpose: The loan shall be considered for purchase of land, construction of building and purchase of machinery / equipments, electricals, etc.

4. Quantum of Loan:  The maximum exposure considered under the scheme is given below:

Constitution Individual Group
[Rs. in Crores]
Proprietary 15 30
Partnership 15 30
Private / Public Limited Companies 30 40

5. Promoter's contribution: The promoter's contribution shall be 35% for new units and minimum 25% for existing units with good track record.

6. Debt Equity Ratio: The DER shall be 3 : 1 for loans upto Rs.10 lakhs and 2:1 for loans above Rs.10 lakhs.

7. Repayment period:
The term loan will be repayable over a period not exceeding 10 years including an initial moratorium of not more than 2 years.  The principal installments are payable on monthly basis and interest is payable on monthly rest.

8. Collateral security:
Collateral security shall be offered to the extent of 50% of the loan amount and in respect of highly movable assets that are prone to rapid obsolescence, collateral security shall be 100% of the loan amount. 

Click here for Rate of Interest

Page modified on 30.08.2012


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