Javascript DHTML Drop Down Menu Powered by dhtml-menu-builder.com
 
 
 
 Services :
 
LEGAL
BUSINESS CONSULTANCY SERVICES
COMPANY SETUP
FINANCIAL SERVICES
REGISTRATION SERVICES
CERTIFICATION SERVICES
LICENSING SERVICES
INTELLECTUAL PROPERTY RIGHTS (IPR)
 
 
 
Financial Services
 
Term Loan Finance

Bank term loans are very a common kind of lending . An unfixed interest rate is usually involved in a term loan that will add additional balance to be repaid. Term loans are generally provided as working capital for acquiring income producing assets (machinery, equipment, inventory) that generate the cash flows for repayment of the loan. The repayment of the loans and facilities is normally fixed on case to case basis depending on projected cash flow of the borrower.



Eligible Credit Facility

The credit facilities which are eligible to be covered under the scheme are both term loans and working capital facility up to Rs.100 lakh per borrowing unit, extended without any collateral security or third party guarantee, to a new or existing micro and small enterprise. For those units covered under the guarantee scheme, which may become sick owing to factors beyond the control of management, rehabilitation assistance extended by the lender could also be covered under the guarantee scheme. It is noteworthy that if the credit facility exceeds Rs.50 lakh, it may still be covered under the scheme but the guarantee cover will be extended for credit assistance of Rs.50 lakh only. Another important requirement under the scheme is that the credit facility should be availed by the borrowing unit from a single lending institution. However, the unit already assisted by the State Level Institution/NSIC/NEDFi can be covered under the scheme for the credit facility availed from member bank, subject to fulfillment of other eligibility criteria. Any credit facility in respect of which risks are additionally covered under a scheme, operated by Government or other agencies, will not be eligible for coverage under the scheme.
   
  Guarantee Cover
The guarantee cover available under the scheme is to the extent of 75 per cent of the sanctioned amount of the credit facility. The extent of guarantee cover is 80 per cent for (i) micro enterprises for loans up to Rs.5 lakh; (ii) MSEs operated and/or owned by women; and (iii) all loans in the North-East Region. In case of default, Trust settles the claim up to 75% (or 80% wherever applicable) of the amount in default of the credit facility extended by the lending institution. For this purpose the amount in default is reckoned as the principal amount outstanding in the account of the borrower, in respect of term loan, and amount of outstanding working capital facilities, including interest, as on the date of the account turning Non-Performing Asset (NPA).
   
Tenure of Guarantee
The Guarantee cover under the scheme is for the agreed tenure of the term loan/composite credit. In case of working capital, the guarantee cover is of 5 years or block of 5 years.
Mob : +91-9022060498 E-mail : info@legalbabu.com
 
     
 
Home - About Us - Services - Clientle - Contact Us - Enquiry
Designed & Hosted by:MID Promoted by:GID