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Working Capital Term Loan
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Objective:
This scheme is aimed
for those units currently facing problem due to lack of working
capital support from commercial banks, but can be made viable with the
infusion of fresh funds by way of one time core working capital
assistance.
Eligibility:
1. The scheme is meant for limited
companies which are industrial concerns as defined in IDBI Act.
2. Those limited companies which have
not got any working capital:
- They are defaulter in banks, but
not willful defaulter.
- They were under financed &
hence running in lower capacity.
- There is market for the product.
- The promoters are competent and
persons of integrity.
- Technology is not outdated.
3. The Company and the unit must be
potentially viable.
Quantum of Assistance:
75% of the working
capital requirement of business for one cycle of operation.
Promoters’ Contribution: 25%
Interest rate: PLR + weightage
of risk.
Repayment Period: Maximum 3
years
The borrower shall
approach commercial banks for meeting its normal working capital
requirement at any time during currency of the loan. As and when the
assistance is sanctioned by the bank, the working capital loan from
NEDFi should be repaid out of the proceeds of the loan sanctioned by
the bank. NEDFi in turn shall release its charge on current assets and
also concede second charge on fixed assets if so insisted by the bank.
Security:
- First charge by way of hypothecation
of current assets.
- Charge on fixed assets of the unit.
- Personal Guarantee of Promoter
Director/Corporate Guarantee
- First pari-passu charge on the fixed
assets of the unit, if the assets are mortgaged to other
institutions/ Bank
- Adequate collateral security
Upfront fee:
1.00% of the loan amount
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