PURPOSE OF LOAN
To provide composite financial assistance to past/existing Corporation’s clients who have/ had a good track record of loan repayment or their associate or group concerns, by way of term loan against fixed assets and working capital term loan against current assets. The loan assistance under this scheme shall be granted for:
Units engaged in industrial, tourism related, service and commercial activities who have been past / existing Corporation’s clients who fulfill the following criteria:
AREA OF OPERATION
In the State of Goa.
QUANTUM OF LOAN
The maximum amount of loan shall be subject to the following limits:
Proprietary concerns Rs.800.00 lakh
Partnership firms Rs.1000.00 lakh
Corporate bodies/ Limited liability Partnership Rs.2500.00 lakh
The maximum limit working capital loan shall be at 40% of the above.
The loan assistance could be considered up to 75% on the value of existing immovable properties i.e. land and building of the unit and additional non-agricultural properties offered as additional/collateral security by the applicant (The valuation will be carried out by the Corporation).
The loan assistance shall be considered subject to the unit providing adequate security with the project being technically feasible and financially viable as per the norms and guidelines of the Corporation. The actual amount of loan sanctioned shall be decided by the Corporation.
If the requirement of the loan for a project is in excess of the above limits, the Corporation may consider in consortium with other Financial Institutions/Banks.
The Debt Equity Ratio of the borrowing entity shall not exceed 2:1
MARGIN ON SECURITY
A minimum margin of 25% of the fixed assets and also 25% of the working capital requirement of the unit during normal year shall have to be brought in by the applicant.
SECURITY FOR LOAN
The loan shall be secured as per the norms of the Corporation by first charge of the Corporation on the following security with clear marketable title:
Primary: The assets financed i.e. land, building & machinery, etc. Exclusive/ pari-passu first charge by way of hypothecation of current assets.
Additional/Collateral: Commercial or residential non-agricultural immoveable properties or any other security acceptable to the Corporation on case-to-case basis, if required.
Personal Guarantee of the promoters/directors/a suitable person of sound financial means, etc. could be insisted in addition to the above wherever felt necessary by the Corporation.
In case of ceding of second charge to other bank/ financial institution reciprocal second charge from the bank/ financial institution will be insisted upon.
1% of the loan amount subject to maximum of Rs.2.00 lakh (plus GST as applicable). The processing fees to be paid shall be as follows:
Preliminary application: Rs.10,000.00 (plus GST as applicable)
Final application: Total processing fees payable less fees paid earlier. All the processing fees are non-refundable.
INTEREST RATE (w.e.f. 01/07/2021)
Term Loan Interest Rate
Up to Rs.50.00 L 9.50% p. a (Fixed).
Above Rs.50.00 L up to Rs.100.00 L 9.50% p.a. to 11.50% p.a. *
Above Rs.100.00 L 9.50% p.a. to 12.50% p.a. *
*The interest rate shall be decided based on the Credit Rating of the applicant, as per the Corporation’s guidelines.
The loan is repayable within 8 years including a moratorium period upto 2 years, depending on repayment capacity of the project. The repayment will be in monthly/quarterly installments.