RFC Yellow Pages

 

Besides General Term Loan Scheme, the following are the special schemes :

* Scheme for Medical Practitioners
* Tourism Related Activities
* Composite Loan Scheme
* Single Window Scheme
* National Equity Fund
* Qualified Professionals
* Transport Loan
* Technology Upgradation Fund Scheme(TUF) for Textile Industry
* Scheme for Technology Development & Modernisation(RTDM)
* Scheme for Certification of ISO 9000
* Construction of Commercial Complexes, Shopping Malls and Sales Outlets
* Information Technology Scheme
* Scheme for Mining Activities
* Working Capital Bridge Loan Scheme
* Assets Financing Scheme
* Fast Track Loan Scheme
* Scheme For Financial Assistance To Industrial Concerns Involved In Commercial Construction Activities For Development Of Residential Houses/Flats/Housing Complex
* Scheme for working capital term loan with the facility of deposit and withdrawal through pass book
* Scheme for financing against assets

Scheme for financing against land cost in SEZ developed by RIICO

Scheme for financial assistance to Wind Farm/Wind Turbine Generator

SCHEME FOR FINANCING AGAINST ASSETS (SHORT TERM LOAN SCHEME)

* Others

a)Scheme for Dhaba
b)Scheme for Financial Activities Relating to Marketing of SSI Products
c)Assistance to Units Intending to Switch-over their Loan Accounts from Banks and other financial institutions to RFC

I. SCHEME FOR MEDICAL PRACTITIONERS

Under the scheme, the Corporation grants financial assistance to individual Doctor, Medical Practioner or a group of them forming partnership Firm/Company or Co-operative Society. Doctors/Medical Practitioners having post-graduate degrees such as MS/MD/MDS as well as those having basic qualification of MBBS/BDS are eligible.

Purpose

The assistance is available for purchase of sophisticated Electro - medical equipments and other related equipments for professional use.

Hospitals/Nursing Homes

Under the scheme, financial assistance upto a maximum of Rs.10.00 Crores, depending upon the constitution of applicant unit is made available. The Hospitals/Nursing Homes should have minimum of 20 beds. One of the pre-condition for the project under the scheme is that services of atleast one expert doctor having post graduate qualifications like MD/MS should be available in Hospital/Nursing Home on full time basis. Hospital/Nursing Home is also required to provide medical assistance at concessional rates to patients from low income group. The financial assistance would cover investment in land, hospital building, electro-medical equipments, instruments, hospital furniture, air- conditioners, small generators etc. Under the Scheme, financial assistance is also extended to existing hospitals for expansion/modernisation.

Repayment Schedule

Keeping in view the fact that the hospital and nursing homes will take time to establish its name and market, the instalments of Principal are fixed for lower amount in initial period giving a moratorium of two years as under :

Ist and IInd Year Nil(Moratorium period)
3rd Year 5% of the Principal Amount
4th Year 7.5% of the Principal Amount
5th Year 12.5% of the Principal Amount
6th Year 17.5% of the Principal Amount
7th Year 25% of the Principal Amount
8th Year 32.5% of the Principal Amount

II.TOURISM RELATED ACTIVITIES


The Corporation has been granting financial assistance for Hotels, Restaurants, Drive-in-Cinemas, Multiplexes and Tourism related activities in Rajasthan. The Corporation has a Package Scheme of incentives for tourism related projects by reducing the interest rate and making disbursements easier. RFC also encourages projects in these areas. Since Govt. of India grants interest subsidy to star category hotels, the entrepreneurs may set up star category hotel to avail this incentive.

Purpose

Assistance under the scheme is available for acquisition of following fixed assets and facilities depending upon the type of activities:

a)Land, Building, Kitchen equipments, Office equipments including telecommunication network, air-conditioners, Interior decoration, Furniture & Fixtures, Conference Hall, Health Club, Swimming Pool, Indoor sports facilities, Shopping Arcade, Garden equipments etc.

b)In case of restaurants set-up in commercial premises, assistance is available to acquire own premises.

Gestation Period/Repayment Schedule

Keeping in view the fact that in case of hotel projects, the occupancy generally remains low in the initial period, the instalments of principal are fixed for lower amount in initial period giving a moratorium period of two years.

Repayment Schedule

Ist and IInd Year Nil(Moratorium period)
3rd Year 5% of the Principal Amount
4th Year 7.5% of the Principal Amount
5th Year 12.5% of the Principal Amount
6th Year 17.5% of the Principal Amount
7th Year 25% of the Principal Amount
8th Year 32.5% of the Principal Amount

Interest Subsidy

Interest subsidy to 1, 2 & 3 star category hotels and Heritage hotels, which have obtained provisional approval from Department of Tourism before sanction of loan may also be available from Department of Tourism, Govt. of India as per their norms. Interest subsidy is available to borrowers, who are regular in repayment of the dues. However, the entrepreneurs should ascertain the operation of the scheme from Tourism Department, Govt. of India before making application.


III.COMPOSITE LOAN SCHEME


Rural artisans and craftsmen and all eligible small industrial activities in Villages, Small towns having total credit requirement not exceeding Rs.50,000/- inclusive of working capital are
covered under the scheme.


IV.SINGLE WINDOW SCHEME


The corporation has been operating the scheme especially for small borrowers to ensure adequate finance by providing single window facility for availing of Term Loan for fixed assets and Working Capital finance from one institution only.

The salient features of the scheme are as under :

- Assistance is available to tiny and small scale industrial units whose cost of project(excluding working capital margin ) and total working capital requirement is within Rs.200.00 Lac.

- Collateral security to the extent of 150% of term loan for working capital would be required.

- Component of working capital normally should not exceed to the term loan for fixed assets.

- The loan shall be repayable within a period of not exceeding 10 years with moratorium period of 18 to 36 months.

- Designated bank may agree to take over the working capital account within three years. In cases where the bank agree to finance only additional working capital, the corporation may continue the earlier working capital loans against the specific security.

V.NATIONAL EQUITY FUND SCHEME

Under the scheme, equity type assistance in the form of soft loan is granted for all industrial activities and service industries(Except Road Transport Operators )

Eligibility


- New projects in tiny & small scale sectors for manufacture, preservation or processing of goods and existing tiny & small scale Industrial units including those which have availed of NEF assistance earlier, undertaking expansion, modernisation, technology upgradation and diversification , sick units in the tiny/small scale sectors including service enterprises which are considered potentially viable are eligible under this scheme.

- Projects for installation of semi automatic/automatic looms in the decentralised powerloom sector under the modernisation programme of power looms under TUF scheme subject to the proposals satisfying the norms and parameters of this scheme.

- Projects which avail of any margin money or seed/special capital assistance under the schemes of Central or State Government, State Financial Corporations and other State level institutions or banks(except Central/State Investment subsidy which may be retained for meeting working capital requirements) will not be eligible for assistance.

Project cost


Project cost(including margin money for working capital) should not exceed Rs.50.00 Lac in the case of new projects. In the case of existing units and service enterprises, the total outlay, including the proposed outlay on expansion/modernisation/technology upgradation/ diversification or rehabilitation should not exceed Rs.50.00 Lac per project.


Minimum Promoter's Contribution


10% of Project Cost


Debt Equity Ratio

65 : 35 or 1.857 : 1(However a flexible approach may be followed in the case of rehabilitation proposals)


Quantum of Assistance

Equity type assistance in the form of soft loan upto 25% of the project cost subject to a maximum of Rs.10.00 Lac per project is given.

Interest

No interest is charged on the soft loan component except service charge @ 5%.

Security

No security (including collaterals) will be insisted upon for the soft loan. However, adequate additional/collateral security , as may be decided from time to time, shall be insisted upon for the term loan.

VI.SCHEME FOR QUALIFIED PROFESSIONALS


Under the scheme, assistance is granted to qualified professionals for setting up their first consultancy venture.


Eligibility

Assistance under the scheme is granted to qualified professionals in the field of management, accountancy, medicine, architecture, engineering, law etc. for setting up professional practice/consultancy ventures for the first time. Assistance to a limited extent for acquiring additional equipments for their practice could also be considered under the scheme in case of the existing established professional firms.

Cost of Project

The cost of the project should be need-based and not exceeding Rs.20.00 Lac. It may include cost of land, building, furniture, fixtures and equipment related to the profession. The cost of land and building should not exceed 50% of the total outlay.

Repayment Period


Five years including initial moratorium not exceeding one year

Other terms & conditions



The applicant should devote his direct and full attention towards his proposed profession /self-employment venture. The premises acquired under the scheme should be used exclusively for professional purposes and not as residence-office.

VII.TRANSPORT LOAN SCHEME

Assistance is available on selective basis for acquiring Trucks, Tankers, Taxies for tourist purposes and also for utility commander jeep, loader, tippers etc.

Eligibility

Person having experience in transport line or he should employ/associate experienced personnel.

Promoter's Contribution

Minimum 33% subject to DER norms as applicable

Security

Collateral security equal to the term loan and also guarantee of one person acceptable to the Corporation is insisted upon.

Quantum of Financial Assistance

Depending upon requirement upto 20 Vehicles


Repayment period

4 to 5 years including moratorium of 2 months


Note : The entrepreneurs should ascertain the operation of the scheme from the Corporation before making application.

VIII. SCHEME FOR TEXTILE INDUSTRY UNDER TECHNOLOGY UPGRADATION FUND(RTUF)

Objective

To provide encouragement to textile industrial units in the small scale/medium scale sector for taking up technology upgradation and to modernise their production facilities.

Incentive

The scheme envisages interest incentive of 5% points on the loans availed by small scale/medium scale units for under taking technology upgradation/modernisation.

Scope of the Scheme

The following activities will be covered under RTUF:

i) Cotton Ginning and Pressing .
ii) Silk reeling and twisting .
iii) Synthetic filament yarn texturising, crimping and twisting .
iv) Spinning .
v) Viscose filament yarn .
vi) Weaving, knitting including non-woven fabric embroidery and technical textiles .
vii) Garment/Made up manufacturing .
viii)Processing of fibers, yarns, fabrics, garments and made ups.

Operating period of the scheme

The scheme would be in operation for a period of five years from April 1, 1999 to March 31, 2004.


Promoter's Contribution

Minimum 33% of the project cost


Rate of Interest

The prevailing rate of interest under General Loan Scheme shall be charged. However, the benefit of the incentive shall be passed/credited into the loanee's account after receiving of the claims from the SIDBI/IDBI.


IX.SCHEME FOR TECHNOLOGY DEVELOPMENT & MODERNISATION
FUND(RTDMF) SCHEME



Objective

To encourage existing exporting & non-exporting industrial as well as service sector units in small scale sector to modernise their production facilities. The units should be in operation atleast for a period of 3 years.


Purpose of Assistance


Purpose of capital equipments, need based civil works and acquisitions of additional land. The outlay on land and building should not exceed 25% of the outlay on modernisation/technology upgradation programme.

Project Cost

Should not exceed Rs.100.00 Lac.

Rate of Interest


Prevailing rate of interest as applicable from time to time

Security


First charge on assets purchased out of the loan and other collateral security as may be deemed necessary.

Period of Repayment


Not exceeding 5 years including moratorium of six months.


Working Capital


The unit should arrange with its bankers to provide additioal need based working capital facility.


Note: The Scheme is valid upto 31 March 2005.



X.ASSISTANCE FOR ACQUISITION OF ISO-9000 SERIES


Objective

This scheme has been introduced to promote & encourage adoption of quality management system in SSI units with a view to strengthen their marketing ability and to enable them to acquire export capabilities . SSI units which have proven record of past performance are eligible for assistance, if they :

- Have been in operation for a period of atleast two years.

- Have earned profit and/or declared dividend during the preceeding two financial years.


- Not be in default to institutions/banks in payment of their dues.

Purpose

Expenses on consultancy, documentation, audit, certification fees, equipments and calibrating instruments required would be taken in to account for determining the loan requirement.

Period of Repayment

Normally not exceeding 5 years including moratorium upto one year.


XI.SCHEME FOR FINANCIAL ASSISTANCE FOR COMMERCIAL COMPLEXES, SHOW ROOMS AND SALES OUTLETS

Objective

To provide financial assistance for construction of commercial complexes, showrooms and sales outlets independent of hotel business.

Eligible Activities

Construction of Commercial complexes, showroom(s) & sales outlets providing infrastructure facilities like Electricity, Water, Sanitaryware, Telephones, Internet, E-Commerce, Lift, Air-conditioners and Cooling, Parking, Storage etc.

Amount of Loan

Amount of loan would be need based within the normal financing ceiling of the corporation, which is presently upto Rs.1000.00 Lac.

Promoter's Contribution


Minimum 40% of the project cost

Rate of Interest

As applicable from time to time

Other terms and conditions


1. The commercial complex, show-room/sales outlets must be established at prime location/main market centres.

2. Map of commercial complexes etc. shall be got approved from the local authority as per norms.

3. The commercial complexes after construction may be disposed of/leased out in part. However, atleast 25% of the area of the complex is to be retained by the borrower with clear demarcation and it would neither be disposed of nor shall be leased out. The borrower may, however, carry out any of his commercial activity in such retained area. The area, retained, as such shall be in addition to the common facilities. The retained area should have easy and proper access to the common facilities like lift, stair cases, utilities etc.

The borrower may, retain more than 25% area of the complex, if he so desires and found it viable.

NOTE :In case the borrower intends to carry any commercial activity in the retained area like setting up of Cyber cafe, Photostat Machine, STD/ISD/PCO, Restaurants etc. which are eligible for financing as per norms of the Corporation, the same may also be considered for financing in the respective scheme.

4. In case of leasing out of any part of the commercial complex, the same will be leased out with the condition that the leasee/tenant will directly deposit the rent/lease money with the Rajasthan Financial Corporation as and when the rent/lease money is demanded by Rajasthan Financial Corporation.

5. In case of selling out any area of commercial complex the loanee/borrowers who are regular in meeting their obligation shall require to deposit the amount equal to the average rate of construction per Sq. Ft. considered in the project/scheme appropriating investment proposed to be made in the common facilities, plant and machinery and MFA etc.

XII.SCHEME FOR FINANCIAL ASSISTANCE FOR INFORMATION TECHNOLOGY

Objective

To promote all type of projects/activities related to Information Technology. However, Educational/Training Institutes shall be outside the purview.

Eligible Activities

a) All activities related to Information Technology Sector including Cyber Cafe, Internet,
E-commerce, Software development etc. except that of the Educational/Training Institutes (School/colleges etc. ) Software Development may be off shore packages. Off shore services to cater the export sector. The activities like Data Processing, Consultancy, Turnkey projects, Product & Package etc. and also any other activity related to this sector may be considered on their merits.

b) Assistance may also be given under the scheme for development of infrastructure related to the Information Technology.

Promoter's Contribution

Minimum 40% of the project cost

Repayment for Loan

The amount shall be repayable within 6 years including moratorium period of 12 months.

Margin of Security

- Land and Building 30%
- Plant & Machinery i.e. Hardware, Software and other equipments 40%
- Registration fee 50%

Rate of Interest

As applicable from time to time under Normal Term Loan Scheme .

Collateral Security

Collateral Security against plant and machinery (hardware & software) and also against fee etc. shall be required.

XIII.SCHEME FOR FINANCING TO MINING EQUIPMENT/INDUSTRY

Objective

To provide adequate loans to mine owners for faster and better development of mineral properties.

Eligibility

a) The entrepreneurs, who are having valid mining lease for a sufficient area in the name of the promoters/firm.

b) There should be proven mineral reserves of sufficient quantity and acceptable quality in the area where mining lease rights have been obtained.

Purpose


For purchase of basic mining equipments, handling equipments, complimentary and ancilliary equipments.

Security

Besides primary security by way of hypothecation of plant and equipments, collateral security to the extent of 100% of loan amount and mortgaging of mining lease deed, if any.

Promoter's Contribution

Not less than 40%.

Margin of Security

For Mining equipments
40%.
For civil construction(like woods, drainage, removal of over-burden and quarry improvement etc. ).
50%

Interest Rate

As applicable from time to time.


XIV.SCHEME FOR WORKING CAPITAL BRIDGE LOAN

Objective

To provide Bridge loan facilities to the units to meet out their working capital requirement at the initial stages of production, till such time working capital facilities are made available to it by any bank on regular basis.

Eligible Units

New/Existing tiny and small scale units, which are considered by the Corporation for term loan and whose venture outlay i.e. aggregate cost of project(excluding working capital margin ) and total working capital requirement does not exceed Rs.200.00 Lac.

Nature and Amount of Assistance


The term loan under this scheme shall be in the form of Bridge loan for a maximum period of one year from the date of implementation of the project/date of disbursement of first instalment of bridge loan as within this period, the unit is expected to arrange the working capital facilities from any bank to meet out its regular working capital requirement.

The amount of bridge loan would be need based, subject to maximum of 10% of the projected turn over of the first year envisaged in the scheme. However, it would not be more than the quantum of term loan proposed to be extended against the fixed assets.

Promoter's Contribution

Minimum 33% of the project cost(including working capital requirement), however, in cases where higher promoter's contribution has been specified, the same would continue to apply.

Rate of Interest


The rate of interest on working capital bridge loan shall be as applicable from time to time for general term loans.

Security

i) Primary Security

First charge as hypothecation on the current assets .

ii) Additional Security

First charge on the fixed assets financed by the Corporation .

iii) Collateral security to the extent of 150% of the working capital bridge loan. In collateral security besides immovable properties, the securities of NSC/FDRs/IVPs etc. on their face value and not on the maturity value may also be considered.

XV. SCHEME FOR DHABA

Purpose of Loan

a. For purchase of land, renovation/alteration of existing buildings and construction of new buildings few(2-3) rooms for staying.


b. For Kitchen equipments & other equipments like Deep Freezer, Utensils, Fans, Coolers, Gas Burners and Furniture etc.


Financial Assistance

Loan upto Rs.10.00 Lac will be considered.


Interest Rate


As applicable from time to time.


Other Requirements



- Land should be converted for hotel purpose. Approval of building plan and NOC from Local Authority are pre-requisite. If land is not converted, financial assistance only for equipment and furniture may be considered against collateral security.


- Depending upon the merits of the case, the sanctioning authority may ask for the collateral security even in cases, where financial assistance is considered for land and building also.


XVI. SCHEME FOR FINANCING ACTIVITIES RELATING TO MARKETING OF SSI PRODUCTS

Objective

To provide financial assistance to SSI units to undertake various activities necessary to increase their sales turnover in the domestic and export market.

To finance service providers which provide support services and/or infrastructure facilities to small scale sector to improve its marketing capabilities.

Eligible Borrowers

Existing SSI units in the small scale sector with a good track record and sound financial position are eligible for assistance. New units could also be considered on a selective basis.

Specialised organisations providing marketing assistance infrastructure and support services to industrial concerns in the small scale sector.

Purpose

For undertaking various marketing related activities such as

- Marketing Research.
- Advertising .
- Establishing distribution net-work including showrooms/
retail outlets etc.
- Development of infrastructure like setting-up of
permanent exhibition centres including parks etc.
- Marketing support to SSIs like data bank, libraries,
internet services etc.

Rate of Interest

Interest rate as prevailing from time to time shall be charged.

Security


Exclusive charge over the assets acquired out of the loan first/second charge on existing fixed assets and other collateral security as may be deemed necessary.

Period of Repayment


This may vary between three to five years with a moratorium upto one year for term loans to SSIs. The period of repayment could be extended to 8 years for marketing related infrastructure projects.

XVII.SCHEME FOR PROVIDING FINANCIAL ASSISTANCE TO UNITS INTENDING TO SWITCHOVER THEIR LOAN ACCOUNTS FROM BANKS AND OTHER FINANCIAL INSTITUTIONS TO RFC

Eligibility

a)Cases having good repayment behaviour with their respective lending institutions and having categorised as standard loan account.


b)Cases must comply with the eligibility norms for financing by the Corporation on the lines of a fresh case.


c)Proposed term loan must be adequately secured and in any case, the quantum of security should not be less than what has been offered to its banks/other financial institutions.

Purpose of Assistance
(i) Financial Assistance for repayment of outstanding loan of the other FIs/ Banks.
(ii) For repayment of unsecured loan (excluding IFUL)/Creditors towards capital goods, provided it does not dilute the norms of minimum promoter's contribution and debt equity ratio.
(iii) For acquisition of further fixed assests for modernisation, diversification, expansion etc.

Quantum of Loan
The loan will be restricted to the balance outstanding in the account of the unit with its bank/Financial institution at the time of disbursement of the loan under the scheme. Loan can be considered for additional assets also.

Repayment Period & other terms and conditions:

The case would be examined and processed as per normal parameters of the Corporation followed/specified under General Term Loan Scheme.

XVIII. SCHEME FOR ASSETS FINANCING

The scheme envisages to provide financial assistance to the businessman/entrepreneurs who are interested to purchase the assets of an existing unit from the prospective seller who is no more interested in running the unit what so ever the reason may be.

Eligibility

A Company incorporated under Companies Act/A partnership firm/Proprietorship concern will be eligible to avail financial assistance under this scheme.

ii) If the main promoter/concern had already availed any financial assistance from any bank/financial institution, should have satisfactory track record of payment.� Its accounts should have been classified as standard assets with the financial institution/Bank.

iii) Weightage would be given to the promoter(s) who are��������� already engaged in the same/related industrial/trading activities.

(iv)� The assets acquired/purchased within a period of 18 months prior to the date of loan application may be considered for financial assistance.

Purpose of Assistance

A.      For purchase of fixed assets as under:-

(i) Land�� : Only industrially converted land or land located in RIICO Industrial Area or land which has been approved by local authorities

for commercial purposes.

(i)                 Building:� Should be in good condition.

(ii)               P&M and MFA:� Should be in good condition and residual life not less than 10 years.

Note:The assets of sick/closed units acquired/to be acquired on cash down basis either from the Corporation or otherwise would also be covered.

B.      For addition of fixed assets to make the unit viable.���

C.�� Working Capital -� If the case fulfills the criteria of Single Window Scheme.

Amount of Assistance

From Rs. 2 lakhs to Rs.1000 lakhs (Rs.1000 lakhs in the cases of Companies).

Margin

(1)     50%� on the acceptable value or purchase consideration of assets whichever is less.

(2)    Usual margin on additional fixed assets as per norms of financing.

Moratorium period

Since the loan is available against existing assets, the moratorium period shall not exceed to 12 months in any case.

Repayment period

The repayment period shall be 5 years from the date of expiry of moratorium period.� The unit shall furnish 20 post dated account payee cheques favouring RFC for repayment of loan in EQI with additional cheques for the interest of moratorium period.

Security

The requirement of security shall be two times of the financial assistance, the loan shall be secured by the following securities:-

First charge over the fixed assets proposed to be purchased.

ii) Personal guarantee of all directors.

iii) In case loan required for additional fixed assets/working capital the concern will be required to furnish security/collateral security as per norms of usual financing by the Corporation.

Basis for calculation of acceptable value

The acceptable value of assets proposed to be financed shall be considered as under:-

LAND & BUILDING:� For determining the value of land and buildings the purchase price as per registered document can be taken into consideration.

PLANT & MACHINERY -�� Written value or purchasing price/MRV whichever is less.

Promoter's Contribution

Overall promoter’s contribution shall be over 40%

Interest charges

  Interest is chargeable at prevailing rate of interest applicable under general term loan scheme.

ii)                  Rebate @ 1% per annum shall be available on timely payment.

Viability of the project

The financing of the assets acquired/proposed to be acquired would be considered only if it is for a part of the project and is found technically feasible and economically viable in terms of norms and guidelines made applicable under general loan scheme.

XIX. FAST TRACK LOAN SCHEME

Many promoters are confident about the successful running of their project and are prepared to furnish additional/collateral security for the term loan for fixed assets which provides extra comfort level to the Corporation. In such cases the Corporation has also decided to reciprocate by providing financial assistance on liberal terms with regards to promoter�s contribution, security margin, all without diluting overall financing norms/parameters laid down by the SIDBI/IDBI, Central/State Govt., RPCB etc.� It has also decided to simplify the procedure of disbursement as compared to the general category of borrowers.� This would not only facilitate early implementation of the project but would also enlarge the scope of the business of the Corporation.

 Eligibility criteria

The promoter/concern/company furnishing collateral security for the term loan against fixed assets, would be eligible to be covered under the scheme. However, as a part of specific decision/guidelines of Corporation where collateral security requirement is a must, such as units in rented premises, mining units, transport loan cases, working capital term loan under SWS, projects based on fast changing technology etc., shall remain outside the purview of this scheme. The Scheme would be applicable to the loan cases under General Loan Scheme, but NOT under Good Borrower Scheme/UPGB and NAU Schemes.

Category of promoters

Under the scheme, promoters may be categorised as follows, based on the quantum of collateral security proposed to be furnished for term loan against fixed assets:-

 Quantum of collateral security

�A�

(i)                Where the value of collateral security against fixed assets is more than 80% of loan amount

Or

Where, in the project, the component of land and building is more than 50% of the total investment towards fixed assets and collateral security is not less than 50% of the loan amount.

Or

Where, in the service sector projects like hotel, commercial complex, hospital, nursing homes, proposed to be located in major cities like Jaipur, Jodhpur, Udaipur, Ajmer and Bikaner, the component of land and building is more than 75% of the total investment towards fixed assets of the project and collateral security is not less than 25% of the loan amount.

�B�

(ii)             Where the value of collateral security against fixed assets is mor than 40% but upto 80%

Or

Where, in the project, the component of land and building is more than 50% of the total investment towards fixed assets and collateral security is not less than 25% of the loan amount.

Or

Where, in the service sector projects, like hotel, commercial complex, hospital, nursing homes proposed to be located in major cities like Jaipur, Jodhpur, Udaipur, Ajmer and Bikaner, the component of land and building is more than 75% of the total investment towards fixed assets in the project and collateral security is not less than 10% of the loan amount.

Note: For the purpose of determining the value of collateral security, the value of primary security would not be considered.

Prameters

The eligible entrepreneurs/cases would be entitled to sanction/avail loan on the liberal terms/norms as detailed below:

A. Facilities/relaxation in terms of sanction�
�A��
�B�
- Minimum Promoter�s Contribution�
30%*
33%*
Security Margin
(a) where usual security margin is 30%
25%
27.5%
(b) where usual security margin is 40%
35%
37.5%
(c) where usual security margin is 50%
40%
45%
DSCR may be accepted
1.5:1
1.6:1
*-However it should not dilute DE Ratio of 2:1 in small scale units and 1.5:1 in meduium scale units.    
B.Facilities/Relaxation in terms of disbursement of loan
�A�
�B�
- Raising of promoter�s contribution before disbursement
50%
75%
 - Advance disbursement
33%
25%
Maximum inspection for verification and Valuation of assets
2 times
3 times

Note: The next advance disbursement would be subject to proper utilisation of previous advance and would be over and above the admissible disbursement against valuation of assets of the project. Beyond 66% disbursement against sanctioned loan amount, eligible disbursement would be released after carrying out valuation only.

         Other relaxations

a)      Credit reports from reputed persons/Gazetted Officer would not be insisted upon if satisfactory report from Bank has been received.

b)     Cases would be taken up for processing/sanction without waiting for NOC/consent from RPCB and the unit would be allowed to furnish the same as under:

         NOC in �red category� cases would be furnished before first disbursement of loan (after documentation and release of token money).

         In �orange category� cases, the same may be furnished uptil disbursement of 25% of sanctioned loan or disbursement of 50% value of collateral security, whichever is less.

         Payment/Receipts for smaller amount in case of plant and machinery and MFA would not be insisted upon to the extent of 10% of the total cost of plant and machinery and MFA.� For such payment only a statement showing the itemwise details of payments duly signed by the promoter and certified by CA shall have to be furnished.

 

XX. SCHEME FOR FINANCIAL ASSISTANCE TO INDUSTRIAL CONCERNS INVOLVED IN COMMERCIAL CONSTRUCTION ACTIVITIES FOR DEVELOPMENT OF RESIDENTIAL HOUSES/FLATS/HOUSING COMPLEX

OBJECTIVES

To provide financial assistance on commercial basis for construction of housing complex and residential houses/flats either independently or part of commercial complex.

ELIGIBLE BORROWERS

The borrowers may be a concern having constitution as proprietor, a partnership firm, a company, a registered public trust or a Registered Co-operative society constituted to run the venture on commercial lines as builders.

ELIGIBLE ACTIVITIES

Construction of houses, flats, apartments and housing complexes providing basic infrastructure facilities like electricity, water, sanitation, telephones, lift, air conditioners and cooling, parking, storage etc.

The financial assistance would be provided for construction activities for the sale on commercial basis.

PURPOSE OF LOAN

The assistance may be granted to eligible borrowers for:

(a) Cost of land.
(b) For construction of building for housing complexes/apartments(commercial cum residential complex).
(c) For acquisition of required plant and machinery/equipment, like lifts, air conditioning plant and fire fighting equipments, other safety devices and also other plants and equipments required for modern type of housing complexes.
(d) Furnishing of houses/flats.

XXI. SCHEME FOR WORKING CAPITAL TERM LOAN WITH THE FACILITY OF DEPOSIT AND WITHDRAWAL THROUGH PASS BOOK

Introduction:

The Corporation is operating schemes to provide working capital to good borrowers and to new entrepreneur under the single window scheme. As per norms of the scheme, WCTL is provided as term loan and borrowers are not free to withdraw and redeposit the loan during the currency of loan. Considering this problem of entrepreneurs in view, the Corporation has devised this new scheme.

Scope:

The following units will be covered for financing under this scheme:
i. Good borrowers/potential good borrowers eligible under the existing WCTL scheme.
ii. Units eligible under non-assisted unit (NAU) scheme for WCTL.
iii. New units or existing units eligible for WCTL under single window scheme to Tiny and SSI units.

Eligibility Criteria:

The eligibility criteria will be the same as applicable under respective schemes already in operation.

Quantum of assistance:

A) WCTL under GB,PGB & NAU scheme: Rs.2 lacs to Rs.100 lacs


B) Under Single Window scheme:

Upto Rs.200 lacs subject to the condition that component of WCTL shall not exceed quantum of term loan proposed for the fixed assets ie. WCTL would not exceed to 50% of the total term loan.

Liquidated Damages:

a) On principal overdue : If there are principal overdues as on
31st March of every year,the liquidated
damages as prescribed in respective
scheme shall be charged on the amount
of default and for the period of default
to be worked out as per repayment
schedule.

b) Interest overdues : Liquidated damages as prescribed in
the respective scheme shall be charged
on the amount due for the period of
default.

Service charges:

Service charges @ 1% pa. Shall be charged over and above interest to be due on quarterly basis alongwith the interest on interest due dates.

Timely Payment Rebate:

No separate rebate would be available for the timely payment.

Pre-payment charges:

Pre-payment of loan is allowed without premium.

Repayment period:

a) The repayment be worked out as per the existing prescribed norms in respective scheme.

Principal:
i. The loan shall be repayable in 4 equal annual instalments.
ii. The first instalment shall fall due on 1st day of month falling immediately after expiry of 12 months from the date of expiry of 3 months from the date of 1st disbursement. In case of non payment dues in time liquidated damages shall be charged as per norms.
iii. The interest shall continue to fall due on 1st day of each quarter.

b) The repayment schedule shall be automatically extended by the instalment replenished. The concern has to ensure that the amount fallen due against principal in a particular financial year shall be cleared in that particular financial year itself ie by 31st March, failing which liquidated damages shall be applicable as above.
c) The interest is payable on due dates failing which liquidated damages shall be applicable as above.

Other Salient features:

a) Drawing and depositing facility: Every borrower may be allowed to withdraw and deposit the amount of WCTL as many times as per the requirement subject to the condition that in any case as on date of withdrawal the outstanding balance including withdrawal in the account shall not exceed principal not due as per repayment schedule.

b) Replenishment of limit: The borrower who is maintaining this account regularly will have the facility of replenishment two times before original LDR after deposit of four instalments. The replenished amount will be added to the principal not due amount as and when it is disbursed. As such no separate account is required to be opened for the replenishment. The LDR shall also be extended by the number of instalments replenished. The replenishment shall be considered at the documented rate of interest irrespective of whatever be the prevailing rate of interest.

c) Additional requirements of working capital can be considered separately for which separate account shall be opened and shall be subject to interest rate prevailing at the time of first date of disbursement.

d) No application fee and processing charges shall be charged for replenishment of WCTL.

e) Transaction fee: Charges are to be levied on the basis of number of transaction of deposit and withdrawal @ Rs.25/- each (excluding entries related to repayment scheduel) on the Ist day of the next quarter.

f) Maintenance of pass-book: Every borrower will be provided a pass book containing details of amount sanctioned,disbursed , interest rate, liquidated damages, service charges, repayment scheduel and the amount replenished etc. This passbook will have basic information of borrower and at the time of every withdrawal and deposit the borrower will ensure that the entries have been made in the passbook by the concerned Branch Office.

XXII.SCHEME FOR FINANCING AGAINST ASSETS

Introduction:

In this scheme the Corporation shall provide financial assistance to prospective borrower for meeting their industrial financial requirements provided the prime security is mortgaged to the Corporation under first charge free from all encumbrances. The salient features of the scheme are as under:

I. Eligibility Criteria:

The following marketable and mortgageable fixed assets are eligible for availing financial assistance under this scheme:

(a) Existing industrial units situated in industrial area saturated and having potential ready to mortgage their prime security with the Corporation under first charge.
(b) Existing commercial complexes, hotels, nursing homes and other service sector situated in Municipal limit of district headquarters ready to mortgage their mortgageable security with the Corporation.
(c) Any other borrowers ready to mortgage their marketable immovable property situated in Municipal limit of district headquarters.

(d) CMD is authorised to consider term loan against the immovable property i.e. land and building only (marketable & mortgageable) situated at Municipal limits of the district head quarters of the State other than Rajasthan in deserving cases with the proviso that the fixed assets of unit located in Rajasthan in which such assistance will be utilised shall also be mortgaged/ pledged with the Corporation.

(e) CMD is authorised to consider and sanction term loan beyond the limit of Rs. 2.00 crores but not exceeding Rs. 5.00 crores in deserving cases of companies/ registered co-operative societies under the Scheme.

(f) Switch over cases financed by banks/ FIs shall also be considered for financial assistance under the Scheme after repayment of outstanding loan of banks/ FIs simultaneously on transfer of title documents to the Corporation.

(g) Further term loan assistance to existing assisted running units of the corporation having balance outstanding term loan amount may be considered on the difference of the amount admissible under the scheme and the term loan outstanding in existing assisted running units.

II. Coverage:

(a) Property situated in Municipal limit of each district headquarter.
(b) Immovable property (Land and Building) situated in fast moving industrial areas shall also be considered eligible for mortgage finance.

III. Security:

(a) The security i.e. Land and building shall be under first charge of the Corporation by way of equitable mortgage.
(b) Personal guarantee of proprietor/partners/directors for securing repayment of loan and interest thereon.

IV. Security Debt Ratio:

The minimum security debt ratio of 2:1 shall be maintained.

V. Amount of Assistance:

Rs. 15.00 lac to Rs. 200.00 lacs only.

VI. Repayment Period:

The total loan shall be repayable in six years including 6 months moratorium period.

VII. Rate of Interest:

The Corporation shall charge interest rate as under:

Prevailing rate of interest to SSI unit as on date of Ist disbursement of loan as per prevailing interest slab i.e. upto Rs.25.00 lacs and above Rs.25.00 lacs only.

VIII. Rebate:

The Corporation shall provide rebate @1% for timely payment.

IX.Financial assistance is also available against immovable properties which is rented/leased out to Corporate bodies/Banks/Financial Institutions/Insurance Companies

LIST OF INDUSTRIAL AREAS ELIGIBLE FOR FINANCING AGAINST ASSETS SCHEME

1. Ajmer Ajmer-Parbatpura, Makhupura Ext.
Beawar- I & II Phase
2. Balotra Balotra I, II and III Phase
3. Bharatpur Brij I Phase
4. Bhilwara Bhilwara I, II and III Phase
Bhilwara (T.A.)
5. Chittorgarh

Ajolia Ka Kheda Phase I & II
Chittorgarh Ext. & TA
Chittorgarh (Chanderia)

6. Bhiwadi Bhiwadi Industrial Area
7. Bikaner Bichwal- I, II and III Phase
Rani Bazar (TA)
8. Jodhpur Mandore,Marudhar, Light Industrial Area
Mini Growth Centre (Sangaria)
Heavy Industrial Area
Electronic Complex (TA)
BNPH Heavy (TA)
B.K.K.

9. Jaipur

 

Bassi I Phase, MIA, VKIA,Jetpura, Jhotwara,Bagru (Old),
Kartarpura,Sudarshanpura,Bais Godown,Sitapura,
Mansarovar
10. Pali Mandia Road Pali I & II Phase, Industrial Estate Pali
11. Udaipur Mewar,Sukher,Pratap Nagar Industrial Area
Units set up on conveted land along National Highway no.8 in
Amberi and Sukher, Distt.Udaipur having opening at NH.No.8
12. Rajsamand Rajnagar
Units set up on converted land at N.H. 8 from Nathdwara to Rajsamand and 2 kms. from Rajsamand towards Kelwa having opening at National Highway No. 8.

13. Kota

Indraprastha,Electronic Complex,Ramganj Mandi

14. Kishangarh

Kishangarh I, II and III Phase., 4th phase, RIICO Industrial Area,
Units set up on converted land in and around 3rd and 4th phase,RIICO Industrial Area, Kishangarh,Units set up on prominent roads namely Harmara Road,Tunkara Road and Makrana Road of Kishangarh within the vicinity of 3 Kms from Kishangarh N.H.No.8 .

15. Mount Abu The mortgageable and marketable commercial and residen-
tial immovable properties located in the Municipal limites
of Mount Abu.

NEW INDUSTRIAL AREAS INCLUDED IN FINANCING AGAINST ASSETS SCHEME

A. AJMER REGION  
1- BO, Ajmer HMT Industrial area,Ajmer
2- BO, Beawar 1-III Phase of industrial area,Beawar
2-JLN Udyog Puri,IBS Industrial area,
Indira Gandhi Indl.Area, Beawar
3-BO,Makrana 1-Gangsaw units located and having opening
at makrana Road,Borawar Road,Makrana
B. BIKANER REGION
1-BO,Bikaner -NOKHA Indl.Area
  -Karni RIICO Indl.Area-1 & II Phase,Bikaner
C. JODHPUR REGION
1-BO,Jaisalmer 1.RIICO Industrial area,Jaisalmer
D. Kota region
1-BO, Kota 1-Furniture Indl.Area, Kota
  2-Industrial estate(Near Grain Mandi),Kota
2-Bundi(S.O.) - By Pass Road Indl.Area,Bundi
E. UDAIPUR REGION
1-BO,Udaipur 1-Pratapnagar Indl.Area,Udaipur

NEW AREAS INCLUDED IN CLAUSE (b) OF ELIGIBILITY CRITERIA
OF FINANCING AGAINST ASSETS SCHEME

A. Ajmer Region
1-BO,Ajmer Pushkar city- provided property is located in
Municipal area at prime location having good marketability and commercial value.
2. BO,Beawar Beawar city – Provided property is located at prime location in main market of the Municipal area having good marketability and commercial value.
3. BO, Kishangarh Madanganj town – Provided property is located at prime location in main market of the Municipal area having good marketability and commercial value.
B. ALWAR REGION
1. BO, Alwar Khairtal town – Provided property is located at prime location in main market of the Municipal area having good marketability and commercial value.
C. BIKANER REGION
1-BO, Bikaner
NOKHA town – Provided property is located at prime location in main market of the Municipal area having good marketability and commercial value
2. BO, Nagaur Merta city – Provided property is located at prime location in main market of the Municipal area having good marketability and commercial value.
D. JODHPUR REGION
1. BO, Balotra
Balotra town- Provided property is located at prime location in main market of the Municipal area having good marketability and commercial value.
2. BO, Abu Road Abu road city – Provided property is located at prime location in main market of the Municipal area having good marketability and commercial value.
E. KOTA REGION
1. BO, Kota
Ramganj Mandi town – Provided property is located at prime location in main market of the Municipal area having good marketability and commercial value.
F. UDAIPUR REGION: 1. BO, Chittorgarh Nimbahera town – Provided property is located at prime location in main market of the Municipal area having good marketability and commercial value.
2. BO, Rajsamand Nathdwara town - Provided property is located at prime location in main market of the Municipal area having good marketability and commercial value.

XXIII Scheme for financing against land cost in SEZ developed by RIICO

Objective:
Under this scheme, the Corporation shall provide financial assistance to prospective entrepreneur for meeting their financial requirements for purchase of land in Special Economic Zone (SEZ) developed by RIICO provided that the land is mortgaged to the Corporation as first charge and should be free from all encumbrances.

Eligibility Criteria:
The term loan against land cost/development charges in SEZ developed by RIICO.

Coverage:
Land situated in Special Economic Zone (SEZ) developed by RIICO presently located near Boranada Industrial Area, Jodhpur and Sitapura Industrial Area, Jaipur.

Amount of Assistance:
Loan from Rs.2.00 lac to Rs.50.00 lacs can be considered under this scheme.

XIV SCHEME FOR FINANCIAL ASSISTANCE TO WIND FARM/WIND TURBINE GENERATOR

Introduction:

Financing of wind farm and individual Wind Turbine Generator (WTG) may be considered. Eligibility criteria and other salient features of the scheme are as under:

Eligibility Criteria:

A borrower may establish wind farm or individual WTG for captive use of generated power or may sell the generated power to JVPNL (SEB/Power company)/Third party� through power purchase agreement (PPA).

Borrower Means:

(a) Proprietorship concern

(b) Partnership firm

(c) Pvt.Limited or Limited company

(d) Co-operative society.

Primary Security:

(a) Exclusive first charge by way of hypothecation/mortgage on fixed assets in favour of the Corporation.

(b) Personal guarantee of promoters.

(c) Deposit of post dated cheques towards payment of instalments of principal loan amount and for instalments of interest payable thereon.

(d) Escrowing of power proceeds ie. exclusive charge on trust and retention account to be opened with any commercial bank for receipt of sale proceeds/revenue of power sold and the said account shall be opened before drawal of first instalment of loan.

Additional Security:

May be required based on financial parameters of the project.

(a)Collateral security on case to case basis depending upon merits and demerits of individual case and promoters.

(b)Second charge on the existing fixed assets of the company.

Promoter�s contribution:

The minimum promoter�s contribution shall be 33% and the same is to be invested before first disbursement of loan.

Amount of assistance:

Loan from Rs.50.00 lac to Rs.1000.00 lac can be considered under this scheme.

Moratorium period:

The moratorium period shall not exceed twelve months from the date of first��� disbursement.

Financial parameters:

(a) Project debt/equity ratio������������ - Not to exceed 2:1

(b) Project DSCR��������� - 1.6 or more

Repayment period:

The loan shall be repayable in ten years ; including moratorium period not exceeding one year.

Rate of interest:

The Corporation shall charge interest @ 11.25%

Rebate:

Rebate for timely payment @ 1.50% shall� be provided to the borrowers. However, no rebate shall be applicable in cases covered under TUF.

Effective rate of interest:

For non TUF cases�� - 9.75%

For cases covered under TUF� - 6.25% (subject to availability of 5% subsidy for timely payment on TUF cases from Ministry of Textiles, Government of India).

Processing charges:

The borrower shall pay processing charges @ 1.20% of sanctioned loan amount; before issuing sanction letter.

Liquidated damages:

The liquidated damages shall be levied on the amount of default for the period of default. Failure to pay instalments/interest on due dates would attract 3.00% penal interest in addition to the normal interest rate.

Mode of payment:

The borrower shall furnish 37 PDCs for the payment of principal loan amount which shall fall due quarterly for the repayment period. Payment of interest shall also be made separately through PDCs. From 2nd to 4th year, 25% of principal loan amount and from 5th to 10th year, 75% of principal loan amount would be recovered from the borrower by way of balooning method.� The first instalment of interest shall fall due on the first day of quarter ie March, June, September and December.

Application fee:

(a) Application form fee-�� 100/-.

(b) Application fee

����� upto Rs.1.00 crore��� - 10,000/-

����� above Rs.1.00 crore� to upto Rs.5.00 crore -���� Minimum 10,000/- + 5000/-������������������������������������������������������������������������������������ for every crore or part thereof.

����� Above Rs.5.00 crore to upto Rs.10.00 crore � Minimum 30,000/- +����� 6000/- for

�������������������������������������������������������������������������� every additional crore or part thereof.

Wheeling Arrangements:

Approval from RVPNL/concerned DISCOM is to be obtained for wheeling arrangements before first disbursement of loan in case of captive consumption of power.

Lease deed:

Notarised photocopy (true copy) of lease deed executed between Government of Rajasthan and WTG supplier/Land Developer Company will be submitted before first disbursement. The period of lease would be 30 years.

Sub Lease Deed:

(a) Sub lease deed of 19 years between borrower and WTG supplier/Land Developer Company would be mortgaged to the Corporation after 90 days of commissioning of the plant (WTG).

(b) 10% of eligible disbursement of loan amount will be made after creation of mortgage of sub leased land in favour of the Corporation.

Power Purchase Agreement (PPA):

(a) PPA agreement is to be made between borrower and JVPNL/concerned DISCOM/Third party before first disbursement of loan.

(b) An Escrowing (Trust and Retention) account is� to be opened with a commercial bank by the borrower; for receipt of sale proceeds/revenue of power revenue The said account shall be opened before first disbursement of loan. Through this account, the Corporation will have the first charge on the sale proceeds/revenue of power revenue.

Borrower shall obtain permission for establishing wind power plant from RREC/State Government before sanction of loan.

XVSCHEME FOR FINANCING AGAINST ASSETS (SHORT TERM LOAN SCHEME)

1. Eligibility Criteria:

The following marketable and mortgageable fixed assets (land and building) which is free from all encumbrances are eligible for availing financial assistance under the scheme:

(a) Existing industrial units situated in industrial areas saturated and having potential as per annexure-A of the existing scheme ready to mortgage their prime security with the Corporation under first charge.
(b) Existing commercial complex, hotels, Nursing homes and other service sector units situated in Municipal limits of district head quarter ready to mortgage their mortgageable immovable properties with the Corporation
(c) Assistance against the land cost alloted by the government authority like JDA, UIT, Municipalities located at prime location of the municipal areas of the cities at Jaipur, Bikaner, Jodhpur, Kota, Ajmer and Udaipur for construction of the commercial/residential purpose on commercial basis. While considering assistance against land cost alloted by government authorities for construction of commercial/residential complexes/flat under the scheme, the following conditions shall be stipulated:

1. The borrower shall submit the following undertakings:
(i) That NOC from RPCB shall be obtained, if it is so required under the law.
(ii) That the borrower shall get the approved site plan/approved plan for construction of commercial complex/residential complexes/flats from the competent authority and the construction of building shall be made as per the approved building plan/site plan and FAR allowed by competent authority. In case, there is any deviation, the same shall be got approved from the competent authority.
(iii) That no part of the land/complex will be leased out/rented out without prior permission of the Corporation.

2. The borrower shall display a board at site mentioning that the project has been financed by RFC and the purchaser shall have to obtain NO DUES CERTIFICATE from RFC before purchasing the area by them.
3. The borrower shall not sale any part of the land/complex/area without obtaining the NOC from the Corporation during the currency of the corporation loan and in case of sale any part of complex/area the borrower shall deposit with the corporation entire sale proceeds of any part of the complex upto the clearance of total term loan.

(d) Further financial assistance to existing assisted running units of the Corporation:

Further financial assistance may be considered on the difference of the amount admissible under this scheme and the term loan outstanding in existing assisted running units of the corporation having outstanding term loan amount.

While considering further assistance the present MRV of land and building (which is marketable and mortgageable) as per clause ‘A’ and ‘B’ of the eligibility criteria of the scheme as per the norms prescribed by the corporation shall be worked out. The admissible loan amount will be calculated @50% of the MRV of such land and building. Thereafter deducting the balance outstanding term loan amount from the admissible term loan amount, the balance amount shall be considered for further financial assistance under the scheme.

(e) Switch Over cases:

Switch over cases financed by banks/FIs shall also be considered for financial assistance under the scheme as per clause ‘A’ and ‘B’ of the eligibility criteria after repayment of outstanding loan of banks/FIs simultaneously on transfer of title documents to the Corporation.

II.Coverage:

Immovable property (land and building only) mentioned at (a) to (e) of eligibility criteria.

III.Dealings with the financial institution/Banks:

Prime facie there should not be adverse reporting against the borrower by any financial institution/bank in the past and their dealings with the financial institution/bank is satisfactory, if any financial assistance is availed.

IV. Mortgageable fixed assets;

Land and building only falling within the definition as per eligibility criteria mentioned at:

Note: The property proposed to be mortgaged should not be leased out/rented out presently and shall not be leased out/rented out in future without prior written permission of the Corporation.

V.Purpose of loan:

The loan shall be utilised for meeting out working capital requirement or for creation of fixed assets to be used for industrial/commercial/service purpose.

VI. Utilisation of availed loan:

A certificate of CA regarding utilisation of loan availed shall be submitted within 6 months of availing the loan.

VII. Security:

(a) The security ie land and building shall be under 1st charge of the corporation by way of equitable mortgage.
(b) Personal guarantee of proprietor/partners/directors for securing repayment of loan and interest thereon.
(c) In case of category (a) and (b) of eligibility criteria, the other assets like P&M, MFA, F&F etc shall also be hypothecated to the Corporation, if not already hypothecated to banks/FIs. But the value of these assets shall not be considered for financing.

VIII. Admissibility of loan:

Term loan under the scheme shall be considered @50% of the MRV of total land and building worked out as per norms of the corporation.

IX. Amount of assistance:

Loan from Rs.50.00 lac and upto Rs.500.00 lac.

X. Repayment period and mode of payment:

The total loan shall be repayable in three years including six months moratorium period.

The loan shall be repayable in eleven equated quarterly instalments against principal and interest through post dated cheques. The first instalment (including principal and interest) shall fall due on first day of the quarter ie. January, April, July, October falling immediately after three months from the date of first disbursement. In case of any balance amount is payable/recoverable (as the case may be), shall be recovered/adjusted in last EQI.

The branch shall recover interest for the moratorium period exceeding three months by calculating the interest manually and the same shall be recovered alongwith 1st EQI through a separate cheque.

XI. Rate of interest:

The corporation shall charge interest rate as applicable to SSI sector prevailing as on date of first disbursement of loan. Presently, the rate of interest is 12.75%. Timely payment rebate shall be as applicable in cases of Tourism Related activities, Hospital and Nursing Homes etc. which is presently 2.00%.

XII. Liquidated damages:

Liquidated damages shall be charged on the amount in default for the period of default as per the prescribed slabs under general loan scheme from time to time.

XIII. Application fee:

(a) Application form fee Rs.100/- per application form as per norms.
(b) Application fee @0.2% on the amount of loan application.

XIV. Processing fee:

The processing charges @ 1.2% shall be deposited before convey of sanction.

XV. Conditions:

(A) PRE-Documentation:
(i) The promoter/borrower shall keep insured the fixed assets ie. building, P&M, F&F every year till the currency of corporation loan and the copy of the Insurance Policy shall invariably be furnished to the corporation.
(ii) A specific condition may be stipulated while sanction of loan that no settlement of the account under the scheme shall be considered as no sacrifice should normally be made by the Corporation in respect of amount of principal and interest thereon.
(iii) UNDERTAKINGS:

(a) The unit shall furnish an undertaking to utilise the loan amount for meeting working capital requirement or for creation of fixed assets to be used for industrial/commercial/service purposes.
(b) The unit shall furnish undertaking that it will comply all legal requirement to run the unit i.e. obtaining NOC from RPCB, NOC from local authority and other department, if required.
(c) The borrower shall furnish an undertaking that the property is owned by him and not let out/leased out and shall not be lease out/let out in future without prior approval from the Corporation.
(d) That no litigation in any court/tribunal/forum related to the property proposed to be mortgaged is pending.

(B) PRE-Disbursement:

(a) The disbursement shall be made in one instalment or such higher number of instalments as the disbursing authority fee appropriate after satisfying the compliance of terms and conditions of sanction letter.
(b) The disbursement can be made within six months from the date of sanction conveyed. Thereafter upfront fee @ 0.1% of amount to be disbursed shall be charged.

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