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Bank Finance:-
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The Bank will sanction 90% of the project cost in case of General Category of beneficiary/Institution and 95% of the project cost incase of Weaker Section beneficiary/Institution and disburse full amount suitably for setting up of the project. |
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Bank will finance Capital Expenditure in the form of Term Loan and Working Capital in the form of Cash Credit. Project can also be financed by the Bank in the form of Composite Loan consisting of Capital Expenditure & Working Capital. Though Bank will claim Margin Money on the basis of projections of Capital Expenditure in the project report and sanction thereof, Margin Money on the actual availment of Capital Expenditure only will be retained and excess, if any, will be refunded to the KVIC, immediately after the project is ready for commencement of the production.
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Working Capital component should be utilized in such a way that at one point of stage it touches 100% limit of Cash Credit within two years of lock in period of Margin Money and not less than 75% utilization of the sanctioned limit. If it does not touch aforesaid limit, proportionate amount of the Margin Money is to be recovered by the Bank and refunded to the KVIC at the end of the second year. |
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