The maximum loan eligibility under the Scheme is limited to 85% of Land, Building, Plant, Contingencies and pre-operative expenses and 50% of moulds and dies. Margin on security is prescribed on the nature of assets.

The other parameters are the following:

a. Minimum Promoters contribution	33.33% if term loan component is over Rs.10/- lakhs otherwise 25%.
b. DER (Max.)	: 2:1 if term loan component is over Rs.10/- lakhs otherwise upto 3:1
c. Maximum Repayment period in years including initial moratorium	I.  Loans up to Rs.10 lakhs   : 8.5 ii. Loans above Rs.10 lakhs   :  10
d. Maximum Moratorium in years	I.  Loans up to Rs.10 lakhs  : 1.5 ii. Loans above Rs.10 lakhs  :   2

In case the unit is on leased/rented/hire-purchase premises collateral security should be provided.  If industrial  plots in  industrial  Estates / Developmental  area  outright  purchase of  the land  by the  promoter  will  be  insisted.  The  patta  should  be  obtained  at   the  earliest.  If the  land  is  leased  the  lease period should  be  for  a  minimum period of  99 years. If the unit is located in industrial development area collateral security will be equivalent to term loan.

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Security

(a) Personal guarantee of promoter(s) and share holders having a shares of  5%  and above.

(b) Collateral cover required to back the loan  component depends on the project  and promoter and his investment levels in the project.