Skip to Main Content / Screen Reader Access

Tender Notices

Scheme of Term Loan Assistance To Qualified Professionals

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.

ELIGIBILITY

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 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 have been satisfactory and the loan account classified as standard for past two consecutive years with bank/financial institution in case of takeover of loans.
The applicant should be agreeable to mortgage its immovable property as prime security and hypothecate its moveable assets with first charge to the Corporation.

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.10.00 lakh 3:1

For loans above Rs.10.00 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

The minimum promoter’s contribution shall be 25% of the project cost.
The loan shall be disbursed after execution of 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 other terms and conditions governing the sanction.
The loan proposal shall be considered on its own merit and mere compliance of the eligibility and other criteria may not entitle the applicant for sanction of loan.

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 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.10.00 lakhs 3:1
  • For loans above Rs.10.00 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 fixed at 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 MIRS-2012 interest rebate for its borrower. The maximum rebate that can be availed under MIRS-2012 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 at the end of the financial year. Please refer to FAQ’s of MIRS-2012 for more details.

close slider