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Interest Rate Structure Effective from 02.01.2017

Applicable To MSME/Non MSME Sector

Irrespective Of Cost of Project

 

S.

No.

NAME OF THE SCHEME

RATE OF INTEREST

1.

Loans upto Rs.20.00 crore to MSME under Normal Project Loan Scheme of the Corporation.

11.00%

2.

Projects for construction of Commercial/Residential Complexes.

14.50%

3.

Finance Against Assets Scheme (FAAS)

14.50%

4.

Short Term Loan, Working Capital Term Loan, Special purpose Working capital Term Loan, Gold Card, Platinum Card & UPGB under Good Borrower’s Scheme

10.75%

5.

Flexi Loan Scheme under Good Borrowers

12.00%

6.

Saral Scheme

12.00%

7.

Loan for purchase of Industrial land from RIICO.

12.00%

8.

Scheme for Financing for Builders/ Commercial/Residential Complexes/ Multiplexes, Hotels, Hospitals etc. for purchase of land & building.

17.00%

It is further decided that no separate rate of interest may be kept for
loans upto Rs. 50000/-. No changes have been made in the interest rate for
other schemes.

NOTES  :-

1.

In case of loans upto Rs. 5.00 lacs to SC/ST entrepreneurs the rate of interest shall be 2% less than the rate of interest applicable to other entrepreneurs in terms of PG circular No. 535 dated 7th Aug., 1993.

 

2.

In case of loans upto Rs. 5.00 lacs, to disabled persons, a firm in which disabled person is partner having majority (not less than 51%) share, the rate of interest shall be 2% less than the rate of interest applicable to other entrepreneurs in terms of PG Circular No. 612 dated 13.06.1995.

 

3

In case of loans upto Rs. 5.00 lacs, the rate of interest shall be 1% less under Scheme for Women Entrepreneurs in terms of P&G circular No. 1353 dated 10.11.2010.

 

4.

Liquidated damages in case of default shall be charged on amount in default for the period of default at rates applicable prescribed by Corporation from time to time. No interest would be charged on the liquidated damages. However, the mode of appropriation of receipts shall remain uncharged.

 

5.

 In  all cases  Post Dated Cheques/ECS for equated quarterly / monthly        installments are to be obtained as per norms. ECS/post dated cheques shall be taken for EQI/EMI based  on documented rate of interest. It should be clearly stipulated that EQI/ EMI has been calculated on documented rate of interest. In case cheque is not realized, the BO shall ask the borrower for enhanced amount of EQI/ EMI by including applicable rate of liquidated damages.

6.

Credit Rating System for differential rate of interest is in abeyance.

7.

Reset Clause: In all loan cases to be sanctioned, the documented rate of interest shall be reset every year after completion of one year from the date of execution of loan documents during currency of loan and the Corporation shall charge rate of interest prevailing at the time of reset of interest or existing rate of interest, whichever is higher.

 

 

Period of Repayment:

The period of repayment of loan is decided in each case depending upon the cash generation of the project. It varies from 5 to 10 years. The principal amount is repayable in quarterly installments usually after 12 to 18 months from the date of commercial production. In case of projects relating to setting up of hotels or hospitals where comparatively higher implementation period is envisaged then the repayment period is determined after moratorium period from the date of implementation of the project. Additionally the repayment schedule is also drawn up in a manner that the repayment obligation is tapered by asking for smaller installments in the initial years with progressively increasing amount.

Favorable Indicators:

While examining the applications, approvals are granted considering the following favorable indicators. In case of new promoters the appraisal is done carefully to assess the viability of the project.

·          Promoters should already have industrial experience either in the same industry or in some other industry.

·          Promoters with high net worth and having adequate investible funds.

·          Promoters disclosing high total income in their income tax returns.

·          Promoters having good past track record with the Corporation with satisfactory dealings.

·          Promoters should have invested heavily in the proposed project of their own without waiting for Corporation’s assistance.

·          Units where there is a firm tie-up arrangement for sale of the goods or who have experience of bulk exports.

·          Promoters having adequate financial resources and setting up a 50% EOU/infrastructure projects.

 

When We Say Sorry:

Our endeavor is to support every viable project of good promoter but we have to say sorry, if:

·        The aggregate paid up capital and free reserves i.e. Networth of your company/concern exceeds Rs. 30 crores.

·        Any Director of our Corporation is Proprietor/Partner/Director/Manager/Agent/Employee or guarantor in your concern or having substantial interest in your concern (except for those Directors nominated by the Government or the Corporation).

·        You propose to set up an industry, registration of which has been banned by the Industries Department/ RPCB/ State Govt.

·        Your proposed industry, in the opinion of the Corporation, is hazardous in nature or otherwise not to be encouraged.

·        It is in restrictive list of the Corporation/SIDBI, if any.

·        When the antecedents/banker’s report about the promoters is not satisfactory.

·        Setting up of a unit would adversely affect the existing units.

·        Promoter’s contribution is not adequate and promoter does not agree to increase it.

·        Process technology is not proven on commercial scale.

·        Availability of raw material is inadequate.

·        Product does not have adequate market potential.

·        Promoter hails from a group which is not taking steps to rehabilitate other assisted unit.

·        Proprietor/Partner/Director of the company and/or their family members are defaulter in other assisted unit of the Corporation/Financial Institution.

·        When the Corporation feels that proposed loan is not adequately secured.

Restrictive List of RFC (Schedule LA (S) 1/6 A)

S. No.

PRODUCT

1.

Textile Process houses (Synthetic) except at Bhilwara.

2.

Waste Spinning

3.

Ara Machine.

4.

MICR & Computer Stationery

5.

Lement

6.

Aluminum Utensils

7.

Welding Electrodes

8.

Plastic Reprocessing

9.

Solvent Extraction Units

10.

Mini Cement Plants & Clinker Grinding Units

11.

Granite Units (Kerosene based).

12.

All type of project based on ODS (Ozone Depleting Substances)

13.

Projects of traditional and Mini Offset Printing Press

14.

Niwar manufacturing Unit.

15.

Pesticides Formulation

16.

Non Power Operated Acid Slurry/detergent.

17.

Paraffin Wax & Chlorinated Paraffin Wax

18.

Tractor Compressor

19.

Recovery of Zinc from Zinc Ash units.

20.

Metallic Yarn

21.

The plant & equipments including VCR, Deck, CTV & Recording Deck.

22.

Drilling Bits