1. When Interest Falls Due
Interest at the prescribed rates falls due on the first day of every quarter i.e. Ist day of March, June, September and December. Please make sure that interest is paid on the due dates so that you are absolved of the liability to pay the penal rate of interest.
2. When Instalment of Principal Falls Due
The Principal is also recovered in quarterly Instalments. The first quarterly Instalment falls due from 6 to 24 months after the expected date of production as envisaged at the time of appraisal in each individual case.
3. Where to Repay
For all Loans, repayments are to be made at the concerned Branch or Sub-Office of the Corporation. The repayment should be made by Cheque/Demand Draft in favour of Rajasthan Financial Corporation. Please note that RFC has not authorised any agent or agency to collect the dues on its behalf. However, the officials of the Corporation are authorised to collect Cheques/DD in person.
4. Rebate on Timely Repayments
Rebate is admissible on timely payments made on or before due date. Rebate in penal interest is also given if the payment is made within the same quarter in which it falls due for payment.
5. Reminder for Payment of Interest Due and Instalments
Though we try and remind you of the payments falling due in advance but non-receipt or non-information about it is no excuse. In case of default, the entrepreneur is liable to be charged penal interest at the rate prescribed over and above the effective rate on the defaulted amount for the period of default. Entrepreneurs are advised to remain in touch with the concerned Branch Office to know their repayment liabilities on the due dates.
6. Consequences of Non-Payment
Non-payment of the due, attracts penal interest. If the defaults become chronic and the Corporation feel that the borrowers are avoiding the payments knowingly and wilfully or the management of the concern is unable to run the unit on economic lines, RFC will be constrained to take the painful decision of acquiring assets under Section 29 of SFCs Act, 1951 and dispose them off by auction/sale to recover the outstanding dues. We do not relish taking such drastic action unless the circumstances compel us to do so. If by sale of assets there is any loss to the RFC (on account of the sale price of assets disposed off by the Corporation being insufficient to cover the total outstanding). We are left with no alternative but to go in for legal proceedings to recover the balance amount from promoters/guarantors personally.
7. Facility of Postponement, Reschedulement etc.
However, if for genuine reasons beyond borrower's control, borrowers fail to repay the dues of RFC in time, they should approach the concerned Branch Office well before the due date of instalment and furnish full details. Depending upon the merits of the case, facilities of postponement, reschedulement etc. may be considered. However, grant of such facilities is solely at the discretion of the Corporation. It is also necessary that borrowers should remain in regular touch and continue to keep the Branch Office informed of the progress and working of the unit at regular intervals.
8. Revival of Closed Units
For revival of potentially viable but closed units, facilities like reschedulement, funding of intt., Waiver of penal interest, change in partners & Directors and recommendation to Banks and other Govt. Departments can be considered for which request may be given to Branch Office.
9. Second Charge
During the course of implementation of the project or after the unit commences the production, sometimes your bankers may like to have second charge on the assets on which RFC is having the first charge for providing working capital finance. Application for this should be made in the prescribed form (which can be obtained from the Branch Office). Generally such request is always agreed, if it is going to help you.
10. Change in Constitution/Directors/Partners etc.
Our usual terms and conditions for grant of loan require that the constitution of the concern/company should not be changed. If change in constitution becomes necessary in the interest of the project, a written request should be made to the concerned Branch and change be effected only after the approval has been granted.
11. General Problems
Our Branches are Focal Points for all your problems. The Branch Incharge should therefore be contacted not only for sorting out your problems, but also for exchange of suggestions for the improvement of our/your working and procedures. However, if necessary, please feel free to contact the Deputy General Manager (FR), General Managers and Executive Director in the Head Office. The Chairman & Managing Director too would be glad to meet you.