APPLICATION FEE/INVESTIGATION FEE
The Corporation shall charge an application fee of Rs. 500/- and
investigation fee of Rs. 500/-per application. The application fee
shall have to be deposited with the Corporation against proper
receipt at the time of issue of check list of formalities and Loan
Application Form and shall be non-refundable.
The loaning policy at present prescribes a processing fee as per the following chart.
Loans upto ` 2 lakhs
No processing fee
Above ` 2.00 lakh and Upto 50 lakhs
0.5% of the sanctioned amount.
Above 50 lakhs to 2 crore
Upto 50 lakhs as above 0.25 % thereafter
Above 2 crore to 5 crore
Upto 2 crore as above 0.15% thereafter.
Legal fee shall continue to be charged as per already approved schedule of the Corporation, which is Rs. 1500/-.
RATE OF INTEREST
The Corporation shall charge interest on loans as per following structure:-
- 2.5% (spread) over and above refinance rate of interest from SIDBI made available to the Corporation from time to time; or
-At present the Lending Rate is 12.75%.
The Corporation shall charge additional interest on principal or interest in default for the period and amount in defaut. The accounts in default shall be subjected to penalty of additional interest as under:-
- Penal intt. @ 1% p.a for default upto 6 months.
- Penal interest @ 2% p.a for default for a period of more than 6 months and upto 2 years.
- 4% p.a for default for a period more than 2 years.
The penal interest will, however, be charged over and above normal
rate of interest for the period of default and on the amount of
The grace period of 30 days shall be allowed from the due date and in case the borrower fails to deposit due principal installment or interest amount within the grace period, penal interest shall be charged from the due date of principal/interest.
PERIODICITY FOR PAYMENT OF INTEREST AND PRINCIPAL
The borrower shall be required to pay interest on loan at quarterly rests on 15th. Of June, 15th. Of September, 15th. Of December and 15th. Of March of every financial year. The repayment of principal amount shall be reckoned on the basis of repayment schedule as per the documents executed and shall vary from case to case upto a maximum of 8 years including moratorium. However the principal amount shall be repayable at quarterly intervals after expiry of moratorium period of 1 to 2 years. The moratorium shall be determined depending upon the period required for implementation of the project which may also vary from case to case. However, in the cse of composite loans repayment of loan shall be between 3 years and 7 years with an initial moratorium of one year ,both for interest and principal depending upon the cash generations of the unit.