Economic Stimulus Plan Loan
A.Window 1. Concessional Credit Line (CCL)
This facility is to support for establishment of new business and expansion of existing business for targeted sectors mentioned the in the SOP.
- Individuals above 18 years.
- All business entities holding a valid trade license if applicable.
- New and existing borrowers.
- Clean CIB report (Individuals/ business entities/promoters).
Interest rate: 4% per annum
- Detail project report.
- Duly filled ESP Application Form signed on all the pages (Full Signature). including annexures;
- Copy of valid Citizenship Identity (CID) of applicant(s).
- Valid Trade License (if applicable).
- Estimates for Civil Works/Quotations for machinery & miscellaneous fixed Assets- proper break up along with quotations/invoices.
- Ownership Certificate of the land/lease agreement etc.
- Project Approval letter (if applicable)
- Construction approval letter from Concerned authority and Approved drawing (if applicable).
- Environment Clearance Certificate (if applicable).
- Tax Clearance (if applicable).
- Letter from BPC for Power Supply (if applicable).
- 12. Technical Assessment and Technical Clearance from the relevant agencies.
Loan to Value: 90% or 9:1 of the project cost and the project cost needs to be aligned with the scale of business mentioned in the trade license as mentioned in the SOP.
Loan to Income: 90%/ 1.11 of the projected income respectively.
Late fee: 5% p.a. on the overdue amount. The late fee shall be charged from the first day of default of an instalment.
Gestation period: As per the bank norms Other conditions:
- The borrowers must submit all the supporting documents verified by the relevant stakeholders including Technical Clearance and Technical Assessment.
- The loan shall be disbursed for intended purpose only
- Disbursement shall be made to the supplier’s account or to the borrower (if already paid.
- Project assets/ securities must be registered with CRST/ relevant agencies (if applicable).
- In case of Limited Company, the charge shall be noted with ROC.
- Any other terms and conditions applicable as deemed necessary by the PFIs.
B. Window 2: Reinvigoration Fund (RGF)
This facility is to help distressed borrowers having business with potential to grow and recover from the setback caused by COVID-19 pandemic and other external factors. The sectors eligible for RGF are also the same sector as mentioned in the SOP. There are two modalities under this window as mentioned below:
a. Modality 1-Interest subsidy
The interest rate will be subside by 4% per annum on the existing loan outstanding for the eligible borrower. The borrowers have to bear the difference in the subsided rate and the interest rate charged by the bank.
b. Modality 2-Additional Loan
This facility will be subside interest rate by 4% per annum for any additional loan availed by the borrower. The client have to bear the difference in the subsided rate and the interest rate charged by the bank.
- Only for the existing distressed borrowers and borrowers showing signs of distress with potential to revive and stimulate economic growth shall be eligible.
- Distressed shall also include viable business and projects unable to complete, operate or take-off including NPL/Deferred/charged-off/loan under gestation subject to revival.
- iii. The borrower/ promoter(s) should not be wilful Defaulter as defined by RMA under Rules and Regulation on Loan Restructuring by FSPs, 2022.
Interest rate: 4% per annum
- Detailed Revival plans- both modality I and II
- Supporting documents related to the revival plans
- Consent from the guarantors/co-owner if applicable
- Actual/Audited/Projected financial statements
- Valid Trade License & Tax clearance
- Valid Insurance policy copy
- Valid CID copy
- Documents related to additional collateral security being offered
LTV & LTI: As per the bank norms
Late fee: 5% p.a. on the overdue amount. The late fee shall be charged from the first day of default of an instalment.
Gestation period: 2 years, if required.
Other conditions:
- The borrowers must submit a comprehensive revival plan with all supporting documents.
- The loan shall be disbursed for intended purpose only.
- Disbursement shall be made to the supplier’s account or to the borrower (if already paid).
- Project assets/ securities must be registered with CRST/ relevant agencies (if applicable.
- In case of Limited Company, the charges shall be noted with ROC.
- If the loan account slips into NPL, the subsidized interest amount should be paid back to Government by the borrower.
Download Application Form CCL
Download Application Form RGF
Download Document checklist for CCL
Download Annexure-CCL
