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| financial services |
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| Financial help where it matters most: |
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| WBIDC’s key function is to provide financial assistance to investors for setting up new medium and large scale industries. As well as expansion, diversification and modernization of existing units. The loans are available in several forms. |
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| Details of various loan schemes effective from April 1,2002. |
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| LONG TERM LOAN |
| Extent of loan |
No limit |
| Rate of interest |
12% |
| Moratorium |
Upto 18 months |
| Repayment period |
Upto 7 years |
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| EQUIPMENT FINANCE SCHEME (EFS) |
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| In this scheme, the loan can be upto 77.5% of the cost of Capital Goods / Equipment (other than second hand) to be acquired. |
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| Extent of loan |
No limit |
| Rate of interest |
11.5% |
| Moratorium |
Upto 9 months |
| Repayment period |
Upto 5 years |
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WBIDC also disburses Short Term Loans upto Rs. 40 lakhs to its assisted units, provided their assets are mortgaged to the Corporation.
The quantum and the rate of interest on Short Term Loans: |
| Category |
Quantum of term loan repaid |
Rate of interest |
Maximum amount of loan |
Maximum duration of loan |
| A |
75% |
12% |
Rs. 40 lakh |
9 months |
| B |
50% |
12% |
Rs. 30 lakh |
8 months |
| C |
25% |
12% |
Rs. 20 lakh |
6 months |
| D |
10% |
12% |
Rs. 15 lakh |
6 months |
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BRIDGE LOANS |
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| WBIDC offers Bridge Loans upto 50% of the admitted claim of State Government incentives as per terms given below: |
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| Against admitted claims |
Upto 50% |
| Repayment period |
15 months |
| Interest rate |
13.5% quarterly |
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| PARTICIPATION IN EQUITY |
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| WBIDC participates in equity by contributing a reasonable amount in the equity shares depending on the merit of individual projects. |
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SPECIAL SHORT TERM LOAN (SSTL) SCHEME |
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| Extent of loan |
No upper limit, based on valuation |
| Eligibility |
No outstanding term loan |
| Security |
Exclusive 'first charge' on fixed assets |
| Rate of interest |
13.5% per annum |
| Repayment period |
12 months |
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| REBATE FOR TIMELY PAYMENTS |
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| Various special rebates ranging from 0.25% to 1.00% are available to the borrowers in respect of Term Loan and EFS and also for industry - specific units who make timely payment of installment and interest and consistently maintain default-free accounts. |
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Reward schemes for customers |
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GOLD CARD CUSTOMER SCHEME |
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| In case of the existing assisted units applying for fresh Term Loans/EFS within a period of 3 years from the date of last installment payment, a special rebate of 0.50% is granted in the interest rate upfront as a Gold Card Customer, provided they consistently maintain default-free account in all previous Term Loan/EFS/Short Term Loan Accounts. |
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SILVER CARD CUSTOMER SCHEME |
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In case of the existing assisted units applying for fresh new Term Loan/EFS, who have repaid at least 70% of the principal amount of their previous loan, a rebate of 0.25% is allowed on the interest rate upfront to the Silver Card Customer.
As soon as a Silver Card Customer pays off the last installment of Principal / Interest in respect of his earlier Term Loan / EFS Loans, he would be upgraded to a Gold Card Customer and a further rebate of 0.25% would be allowed to him from that date on his present loan. |
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THE PRIVILEGE CUSTOMER SCHEME |
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| Eligibility Criteria |
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Existing unit with standard assets, in operation for at least 7 years and earning Net Profit during last 5 years. |
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Current ratio of more than 1.5:1 |
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Debt : Equity Ratio better than 1.5:1 |
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Net Worth more than Rs. 10 crores without revaluation reserves. |
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Company should not have availed of any relief by way of waiver of penal interest and / or re-schedulement during the last 7 years. |
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| Upfront Discount |
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An upfront discount of 0.75% per annum on the prevailing rate of interest of the Corporation. |
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No further rebate on timely repayment. |
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Upfront discount on the interest rate would be withdrawn in case of default in repayment and in addition, liquidated damages @5% per annum on the defaulted amount for the defaulted period will be charged. |
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Time-bound Sanction and Disbursement |
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Decision within 15 days from the date of submission of formal completed application. |
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Disbursement within 15 days from the date of completion of basic legal documentation. |
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I. The initial disbursement (not exceeding 50% of the sanctioned amount) will be made after
a. Execution of loan agreement.
b. Completion of the hypothecation document
c. Submission of 'No Objection Cerfificate' from the existing Term Lenders regarding creation of pari-passu charge on the fixed assets.
II. Balance disbursement after completion f all legal and other allied formalities. |
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