Corporation announces scheme for Financing for Builders/ Commercial/ Residential Complexes/ Multiplexes, Hotels ( Tourism Related activities) Hospitals, Nursing Homes for purchase of Land & Building.
(I)ELIGIBILITY CRITERIA:
The following marketable and mortgageable fixed assets (land & building) which is free from all encumbrances are eligible for availing financial assistance under the Scheme:-
a) Assistance against the land cost allotted/ auctioned by JDA, UIT, Municipalities, RIICO, RSHB or any Govt. Authorities or Banks, located at prime location of the municipal areas of the cities at Jaipur, Bikaner, Jodhpur, Kota, Ajmer, Alwar and Udaipur for construction of commercial/ residential complexes on commercial basis, multiplexes, hotels ( Tourism related activities) Hospitals, Nursing Homes.
b) Assistance against the land and building purchased fromthe private parties (subject to having mortgageable title) at prime location of the municipalities located at Jaipur, Bikaner, Jodhpur, Kota, Ajmer, Alwar and Udaipur for construction of commercial complex / residential complexes on commercial basis, Multiplexes, Hotels ( Tourism Related activities) Hospitals, Nursing Homes etc.
1)The borrower shall submit the following undertakings:
i) it will comply all legal requirements i.e. obtaining NOC from RPCB, NOC from local authority and other department, if required.
ii)that the borrower shall get the approved site plan/ approved plan for construction of commercial/ residential complexes / flats/ multiplexes, hotels ( Tourism Related Activities) Hospitals, Nursing Homes 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 in case of Commercial Complex/ Residential Complex/ Multiplexes.
3) The borrower shall not sale any part of the land / Commercial Complex / Residential Complex/ Multiplexes 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 the sale proceeds of any part of the complex proportionately in the ratio of the loan amount of the Corporation and promoter’s contribution upto the clearance of total term loan.
II) COVERAGE:
Immovable property ( land & building only ) mentioned at (a) and (b) of Eligibility Criteria.
III) DEALINGS WITH THE FINANCIAL INSTITUTION/ BANKS
Prima facie there should not be any adverse reporting against the borrower and its sister concerns 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) MORTAGAGEABLE FIXED ASSETS:
Land and building only falling within the definition as per Eligibility Criteria mentioned at (I).
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 utilized for purchase of land and building as per Eligibility Criteria mentioned at (I).
VI) UTILISATION OF AVAILED LOAN:
A certificate of CA regarding utilisation of loan availed shall be submitted within six months of availing the loan.
VII) SECURITY:
a) The security i.e. land & building shall be under first charge of the Corporation by way of equitable mortgage.
b) Personal guarantee of partners/ Directors for securing repayment of loan and interest thereon.
c) All existing P&M, MFA, F&F in case of purchase of fixed assets of the existing unit shall also be hypothecated.
d) All future fixed assets like building, P&M, MFA, F&F shall also be mortgaged.
VIII) ADMISSIBILITY OF LOAN:
(a) In case of direct allotment/ auction by the Govt. authority as mentioned in eligibility criteria of the scheme, the term loan shall be considered @ 80% of the purchase/ auction price.
(b) In case of purchase of property from the private party the admissibility will be 80% of the purchase consideration or MRV whichever is lower.
IX) AMOUNT OF ASSISTANCE
Loan from Rs. 50.00 lac and upto Rs. 1000.00 lacs in case of companies, corporations and registered co-operative socities and upto Rs. 800 lacs in other cases.
X 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% p.a. Timely payment rebate shall be as applicable in case of Tourism Related Activities, Hospital and
The interest shall be payable in quarterly instalments on first day of March, June, Sept., and Dec., every year. The first interest shall be debited on the next interest debit date falling after the first disbursement date.
XI. 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.
XII. APPLICATION FEE:
a) Application form fee Rs. 100/- per application form as per norms.
b) Application fee shall be charged as per the prevailing norms of the Corporation.
XIII. PROCESSING FEE:
Processing charges shall be charged as per the prevailing norms of the Corporation.
XIV. MODE OF DISBURSEMENT
As the funds are required for the purchase of assets from Govt. Authorities or private parties, therefore, the eligible loan amount shall be disbursed directly to the seller after receipt of registered sale deed/ lease deed by the Corporation and equitable mortgage is created in favour of the Corporation.
The Corporation may issue an assurance letter in favour of the seller with regard to release of eligible loan amount subject to compliance of condition of the sanction and creation of equitable mortgage in favour of the Corporation.
XV FURTHER FINANCIAL ASSISTANCE FOR THE PROJECT.
If the borrower approaches for further financial assistance for construction of building , acquisition of plant and machinery, MFA and furniture and fixture, the same shall be considered by the Corporation as per norms prevailing under the respective scheme.
XVI CONDITOINS:
A) PRE- DOCUMENTATION:
i) 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.
ii) UNDERTAKINGS:
a) The unit shall furnish an undertaking to utilise the loan amount for creation of fixed assets as mentioned in the eligibility criteria.
b) That no litigation in any court/ tribunal/ forum related to the property proposed to be mortgaged is pending and there is no dispute about the properties.
iii) In case of switch over of the loan account from the Corporation, the rebate for timely payment allowed alongwith the reduction in interest if any allowed by the High Power Committee shall be recovered since inception besides prepayment premium as per norms.
XVII: PRE DISBURSEMENT:
i) The borrower shall keep insured the fixed assets i.e. 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) In case of release of direct payment of admissible loan amount to the Govt. Authorities / Private Parties, the disbursing authority before release of admissible loan shall ensure that the remaining amount ( purchase price – admissible loan) has been paid by the borrower and the cheque/ DD has been cleared.
iii) The disbursement can be made within six months from the date of sanction conveyed. Thereafter up-front fee @ 0.1% of amount to be disbursed shall be charged.
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