PURPOSE

The loan shall be used for meeting short term development and working capital requirement of Small Scale Industrial Units and hotels operating successfully.

 All Small Scale Industrial Units and hotels are eligible for financing under this scheme, if the units

i)  Have been in operation for the last four years.

ii) Have rising Net Profits during the last two financial years.

iii)Have shown rising trend of turnover.

iv)Have growth in net worth

v)Have shown a repaying capacity to pay back the loan in the stipulated repayment

MAXIMUM ELIGIBILITY

66 2/3% of the estimated requirement for the approved purpose.  Balance will have to be brought in by the promoters.  The loan will be disbursed in insalments after ensuring that the promoter has brought in his contribution.

MAXIMUM LOAN

      The total amount outstanding to be paid to the Corporation by a single  units under the Special Schemes shall not exceed Rs.100 lakhs.

RATE OF INTEREST

REPAYMENT PERIOD

The loan shall be repaid in 2 to 3 years with initial moratorium of 2 months

MODE OF DISBURSEMENT

The loan will be disbursed after ensuring that the promoter brought in his contribution.  The loan amount will be disbursed in two instalments after verification/valuation of assets.

COLLATERAL SERCURITY

Collateral security to cover 150% of the loan amount to be furnished.