Terms & Conditions

1. General terms & conditions of loan:

Tenure of loan & moratorium period:

Tenure of loan would be a maximum of 10 Years, from the date of the first disbursement, including moratorium period of a maximum 2 years on repayment of principal only, while the interest payment will begin form the next month of release of first instalment.

Interest Rate:

The rate of interest to Participating Institutions (PIs) would be 1.5% per annum.

Collateral Security  Arrangement for loan:

The loan should be secured through collateral security, which should be minimum 1.5 times of the loan amount in terms of mortgage of immovable assets and hypothecation of movable assets. Collateral can be generally existing land, building, machinery, and equipment. In addition, new plants, machinery, building and equipment which will be installed under the project will also be taken as collateral security. In case of shortfall, State Government guarantee will be required.

2. Repayment of Loan:

Repayment of Interest:

The repayment of principal and interest will be paid by Participating Institution (PI) on monthly basis Interest. There will be no moratorium period on payment of interest. The payment of interest will begin from the next month of release of first instalment.

Repayment of Principal:

The principal will be paid on monthly basis after completion of moratorium period.