RIICO

FINANCIAL ASSISTANCE

Schemes for Financial Assistance

RIICO provides financial assistance by way of term loans for Industrial, Infrastructure and Commercial projects such as manufacturing, service establishments, bridges, roads, flyovers, power plants, multiplexes, commercial complexes, hotels, motels etc., to existing as well as new companies to meet their various financial requirements.

Schemes for Financial Assistance

Broad details of Financial Schemes of S. No.

1

RIICO are as under Name of Scheme Broad Purpose

Project Loan Scheme

Promoters Contribution

40%

Debt: Equity Ratio

1.5:1

Security Margin

25% 2. 3. Equipment Finance Scheme (EFS) Working Capital Term Loan Scheme For setting up of new project(s) / expansion / modernisation diversification. / Providing finance to quick well established industrial units for acquisition of capital goods/equipments both indigenous and imported. To provide medium term loan for meeting working capital needs of manufacturing a company. 22.5% Minimum 1.5:1 1.5:1 25% 25%

Schemes for Financial Assistance

Broad details of Financial Schemes of RIICO are as under S. No.

4. 5.

Name of Scheme Broad Purpose

Medium Term Multipurpose Loan Scheme Hotels & Tourism Related Activities - Heritage Hotels, Midways, Motels, Restaurant, Amusement Parks, Ropeways, Water Parks, Resorts, Clubs, Boating, Water Games, etc. For meeting various financial needs of an assisted unit of the Corporation.  Construction of New hotels, Motels etc.  Expansion / Renovation/ Modernisation of old forts & palaces into heritage hotels.  Other essential amenities, Plant & Machinery and Equipments..

Promoters Contribution

30% Minium

Debt: Equity Ratio

1.:1 After availing Loan 1.5:1

Security Margin

25% 25%

Schemes for Financial Assistance

Broad details of Financial Schemes of S. No. RIICO are as under Name of Scheme Broad Purpose

6.

Promoters Contribution

40%

Debt: Equity Ratio

1.5:1

Security Margin

25% 7. Credit Scheme for Builders / Commercial / Residential Complexes Short Term Loan to Existing Good Borrowers  To provide quick finance to builders to take up commercial residential / complexes to meet the land cost, civil works and utility equipment etc.  For purchase of land from local authority / Govt. authority / RSHB / RIICO and private parties. For meeting various requirements including the working capital needs.

Schemes for Financial Assistance

Interest Incentive Scheme for Good Borrowers The Corporation grants incentive of interest rebate of 1% in case of borrowers meets following criteria of ”Incentive Scheme for Good Borrowers”:

     Should be existing good category and standard asset of RIICO as well as other Financial Institutions.

The net worth and turnover should be Rs.100.00 lacs as per the last audited annual accounts.

Having three years satisfactory repayment record with financial institutions/banks.

Should have three years track record of consistent turnover and cash profits with good financial position.

Documented rate of interest under Good Borrower Scheme is 12.50% as on date and effective rate after rebate for timely payment is 11.5% p.a. Assistance to Builders, Commercial/Residential Complexes is not covered under this scheme.

Prevailing Interest Rate and Rebate

The present lending rate of interest of the corporation is 13.50% p.a. with a rebate of 2.00 % for timely repayment. The interest rate for Commercial & Real Estate Sector is 15.5% p.a. with a rebate of 0.50% for timely repayment.

Details of Processing Charges

S. No.

1. 2. 3.

Category

Processing Fee Service Charges in lieu of legal charges & reimbursement of expenses on inspection, etc. Up-front fee

Fee/Service Charges

@0.1% of the term loan applied for (in case of good borrowers as well as new borrowers)

For Good Borrowers)

@ 0.05% of the sanctioned term loan subject to a maximum of Rs. 4.00 lacs.

For New borrowers

seeking assistance of above Rs. 1.00 crore, @0.4% of the sanctioned term loan subject to a maximum of Rs. 4. lacs.

For Goof Borrower(s)

@ 0.10% of the sanctioned term loan subject to a maximum of Rs. 4.00 lacs.

For New borrowers

seeking assistance of above Rs. 1.00 crore @0.50% of the sanctioned term loan subject to a maximum of Rs. 4.00 lacs.