PURPOSE OF LOAN
To provide financial assistance to finance acquisition of premises, machinery and furniture & fixtures required for setting up new or acquiring additional fixed assets for professional practice / consultancy venture.
Scheme of Term Loan Assistance To Qualified Professionals
ELIGIBILITY
AREA OF OPERATION
Only in the State of Goa.
QUANTUM OF LOAN
Up to Rs.75.00 lakh. The actual amount of loan sanctioned shall be decided by the Corporation based on its norms.
MAXIMUM DEBT-EQUITY
For loans up to Rs.50.00 lakh 3:1
For loans above Rs.50.00 lakh 2:1
MARGIN ON SECURITY
The minimum margin on the security shall be 25%.
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.
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.
PROCESSING FEES
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) (For loans between Rs.5.00 – Rs.10.00 lakh, the fees payable shall be Rs.5000.00 plus GST as applicable)
Final application: Total processing fees payable less fees paid earlier.
All the processing fees are non-refundable.
INTEREST RATE
The present rate structure is as under:
Term Loan up to Rs.75.00 lakh – 9.5%
LOAN REPAYMENT
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.
GENERAL
EDC’S SCHEME OF TERM LOAN ASSISTANCE TO QUALIFIED PROFESSIONALS
| Purpose | To provide financial assistance to finance acquisition of premises, machinery and furniture & fixtures required for setting up new or acquiring additional fixed assets for professional practice / consultancy venture. |
| Interest Rate | Loans upto Rs.75.00 lakhs @ 9.50% p.a. |
| Moratorium | Up to 2 years. |
| Repayment | 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. |
Frequently asked questions (FAQs)
Who is eligible for the Loan and what are the requirements?
- Professionals such as Registered Medical Practitioners and Doctors in Homeopathy, Ayurvedic, Veterinary, Dentists including Physiotherapist, Pharmacist, IT professionals,
- Chartered Accountants, Company Secretaries, Advocates, Consulting Engineers, Chartered Engineers / Registered Valuers, Architects, Cost Accountants, MBA, MMS, MCA, BTech, Bachelor in Fashion Designing, Interior Designing, Hotel Management, Psychology, Artificial Intelligence, Big Data Analytics etc. in the Individual/joint capacity or as a partnership concern/LLP/Company.
- The promoter should have a minimum of two years experience in the line and the age limit shall be upto 55 years.
- The loan amount shall be utilized for creation of fixed assets, take-over/repayment of outstanding loans (only standard assets) of applicants from other banks/institutions against fixed assets acquired, during the past 18 months.
- The proposed property to be mortgaged should not be presently leased out/rented out and should not be leased out/rented out in future without the permission of the Corporation.
- The repayment history& past dealings of the promoters/unit /sister concerns/group concerns with the Corporation/Banks/FIs should be satisfactory.
- The applicant should be agreeable to mortgage its immovable property as prime security and hypothecate its moveable assets with first charge to the Corporation.
What are my Loan Limits?
Term Loan up to Rs. 75.00 lakh @ 9.50% p.a
What is maximum Debt-Equity for my project?
- For loans up to Rs.50.00 lakhs 3:1
- For loans above Rs.50.00 lakhs 2:1
What should be the minimum promoter’s contribution?
Minimum of 25% of the project cost.
What security I shall offer for loan?
The loan shall be secured as per the norms (not less than 100% immovable security cover) 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.
- 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.
Can I approach for term loan for purchase of premise?
EDC provide financial assistance only to the commercial premises. An applicant has to purchase the premise and approach the Corporation for reimbursement.
What would be my Loan tenure and the moratorium?
The loan is repayable within 8 years including a moratorium period upto 2 years, depending on repayment capacity of the project.
Do I have to repay my loan in moratorium period?
The borrower has to repay only the interest component on the outstanding loan amount.
Whether repayment of Loan is in monthly/quarterly installments?
For term loan the repayment of principal and the interest amount is scheduled on quarterly basis.
What documents are required for applying a Loan with EDC?
The forms (i.e. Application form & Guarantor form) and are available on the EDC website. These forms have a checklist of documents on the last page.
Is a Guarantor mandatory for term loan application?
Guarantor of sound financial means, etc. could be insisted in addition to the above wherever felt necessary by the Corporation.
Are there any pre closure charges if I prepay the Loan?
1% on the partly or entirely premature paid amount.
What are the processing fees? Are there any other charges?
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) (For loans between Rs.5.00 – Rs.10.00 lakh, the fees payable shall be Rs.5000.00 plus GST as applicable)
- Final application: Total processing fees payable less fees paid earlier.
- All the processing fees are non-refundable.
- Other than the above charges, there are no other charges.
Is the rate of interest charged on the loan is fixed or floating?
The rate of interest for a loan is floating at 9.50% p.a.
When can I expect the disbursement of loan?
The loan shall be disbursed after execution of the legal documents and compliance of terms of sanction/disbursement formalities. The loan disbursement shall be in proportion to the investment made on land, building, machinery, etc. and as per the terms & conditions governing the sanction of loan.
Are CMRY & GTEGP borrowers also eligible?
However, the applicant must close term loan availed under CMRY & GTEGP scheme before applying to ‘Scheme Of Term Loan Assistance To Qualified Professionals’.
How do I benefit to avail loan from EDC compared to other bank/Financial Institution?
EDC offers MMIRS interest rebate for its borrower. The maximum rebate that can be availed under MMIRS by the borrower can go up to 9% p.a. This rebate is given on the yearly basis. An applicant is only eligible for this rebate if the loan account is classified as a standard account and should be operational at the end of the financial year. Please refer to FAQ’s of MMIRS for more details.