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Loans
Under The TUFS
Loans
under the TUFS will be provided on the following terms and
conditions :
Amount
of loan :
No
minimum or maximum limit
Promoters’
contribution :
Minimum
of 20% of the project cost.
Debt-equity
ratio :
Maximum
of 1.5 : 1
DSCR
:
Maximum
1.3
Rate
of interest :
a)
Rupee loan :
Loans
under TUFS shall carry interest at normal applicable
rates of the lending institutions prevailing at the time
of sanction/execution of loan documents. Ministry of
Textiles, Govt. of India will reimburse interest to the
extent of 5% p.a. which would be made available to
borrowers availing of assistance under TUFS. Interest
reimbursement as and when received from the Govt. would
be passed on to the Borrower by IFCI.
b)
Foreign Currency loan :
As
applicable to the normal FCL. However, Ministry of
Textiles, Govt. of India, would provide a cover for
exchange fluctuations not exceeding 5% p.a.
Period
of Interest Reimbursement :
Interest
reimbursement of 5% as also cover for exchange fluctuation not
exceeding 5% p.a. will be available during the period of loan as
specified in the Letter of Intent or as may be specified in the
loan document. In case of subsequent extension of the repayment
period, reimbursement towards interest/exchange fluctuation will
not be available for the extended period.
Upfront
Fee :
1%
of the loan amount plus tax, payable at the time of execution of
loan documents.
Period
of loan :
To
be decided on the basis of projected cash flow. However, the
repayment period, including the moratorium, shall not exceed 8
years.
Security
:
First
charge on the entire fixed assets of the borrowing
company with a minimum FACR of 1.5 besides the
personal/corporate guarantee of promoters/group and
pledge of promoters’ shareholdings, as may be decided
on the merits of the case.
Conversion
Option :
Not
applicable, except in case of defaults.
Pre-Requisites
For Assistance Under TUFS
(i)
Detailed project report :
Jute
mills are expected to prepare detailed project report, quantify
the physical and financial requirements of the scheme including
margin money for additional working capital and also bring out
clearly the specific technological improvements in crucial areas
of operations with their impact on productivity and profitability.
(ii)
Management :
As in part IV of Govt. resolution, dated 24.3..99
(iii)
Working Capital Requirement :
As
in part V of Govt. resolution, dated 24.3.99
Procedure
For Application
The
applicant companies may submit the loan application in
the prescribed format along with Detailed project report
(DPR) to IFCI at its Head Office or any of the Regional
Offices. IFCI will process the application/ carry out
appraisal for assessing the viability including track
record of the promoters and existence of prudent
systems and procedures including corporate governance.
Timeframe
For Sanctions
All
efforts will be made to process the application and
sanction assistance on merits to deserving concerns
within two months from the date of receipt of complete
application with full information and DPR.
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