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HPSIDC
INVITES
ENTREPRENEURS
TO
AVAIL TERM LOANS OF UPTO
Rs.
5.00 Crores
FOR
INDUSTRIAL VENTURES BEING SET UP IN HIMACHAL PRADESH
AT
A MOST COMPETITIVE INTEREST RATE OF
11.50%
(effective)*
H.P.SIDC
invites entrepreneurs to avail term loans for their
industrial projects being set up in Himachal Pradesh
(existing as well as new ventures) at competitive
interest rate of 11.50% (effective)*.
Note
:-
1.
The
term loans shall carry interest @ 12.00 %* with rebate
of 0.5% for timely payments as per current interest rate
structure of HPSIDC. The interest rate prevailing at the
time of documentation shall however be applicable.
2.
The
debt equity ratio normally does not exceed 1.5:1.
The Corporation also requires additional
collateral security to the extent of 35% of the term
loan sanctioned.
3.
The
maximum term lending limit per project/proposal would be
Rs.5.00 crores. The repayment period may extend upto 8
– 10 years with suitable moratorium of 1-2 years.
For
further details/terms
may refer to the HPSIDC’s website –
hpsidc.nic.in or contact the undersigned.
SCHEMES OF
FINANCIAL ASSISTANCE
The HPSIDC operates
schemes for providing long term loans for the setting up of industrial units in the State
Salient features of the various schemes are -
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Concerned State |
: |
Himachal Pradesh |
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Concerned Department |
: |
Himachal Pradesh State Industrial Development
Corporation |
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Scheme |
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Long Term Loans |
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Sponsored by |
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State |
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Funding Pattern |
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The Corporation provides long-term loans to the extent
of Rs. 500 lakhs to an industrial
project (including tourist related ventures) for the acquisition of fixed assets like land
building plant and machinery and to meet expenditure on technical know-how pre-operatives
etc.
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Description |
: |
long term lending
is normally operational under the
Refinance/Credit Schemes of the Industrial
Development Bank of India (IDBI) or the Small Industries Development Bank
of India (SIDBI) |
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Beneficiary |
: |
Any
other |
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Type |
: |
Loan |
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Details |
: |
The loans are sanctioned for setting up a new
industrial unit as well as for the expansion,
diversification and modernisation of an existing unit.
The debt equity ratio normally does not exceed 1.5:1. The Corporation also requires
collateral security usually in the form of real estate to the extent of 35% of the term
loan required.
Projects can also be
considered for consortium financing by HPSIDC alongwith either the Himachal Pradesh
Financial Corporation (HPFC) or any other financial institution/bank.
The term loans
extended by the Corporation are repayable within a period of 7-10 years with a moratorium
of 1-2 years depending upon the servicing capacity of the project. The interest rates
charged are those prevailing from time to time.
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Eligibility Criteria |
: |
Public/private
limited companies, partnership firms, Hindu
joint family concerns, sole proprietary concerns
and cooperative societies. |
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How to Avail |
: |
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Reference URL |
: |
http://hpsidc.gov.in/finschem.htm |
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Keywords ( To Facilitate Search) |
: |
Loans, Schemes |
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Concerned State |
: |
Himachal Pradesh |
|
Concerned Department |
: |
Himachal Pradesh State Industrial Development
Corporation |
|
Scheme |
: |
BRIDGE LOANS : |
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Sponsored by |
: |
State |
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Funding Pattern |
: |
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Description |
: |
HPSIDC
also extends bridge loans against term loans sanctioned by it. The financial assistance
under this scheme is generally to the extent of 75% of the sanctioned term loan which can
be extended upto 90% in special circumstances, against the security of hypothecation of
assets personal guarantee of directors/promoters and/or bank guarantee This facility is
available in case the promoters are unable to fulfil on a timely basis the stipulations
laid down during the sanction of term loans due to unforeseen circumstances. Such facility
is granted for a period of six months which can be extended for a maximum period upto 12
months . |
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Beneficiary |
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Any
other |
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Type |
: |
Loan |
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Details |
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The loans so advanced are
subsequently adjusted through disbursement of regular term loan, after all the
stipulations are complied with. |
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Eligibility Criteria |
: |
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How to Avail |
: |
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Reference URL |
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http://hpsidc.gov.in/finschem.htm |
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Keywords ( To Facilitate Search) |
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Loans, Schemes |
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Concerned State |
: |
Himachal Pradesh |
|
Concerned Department |
: |
Himachal Pradesh State Industrial Development
Corporation |
|
Scheme |
: |
EQUIPMENT FINANCE : |
|
Sponsored by |
: |
State |
|
Funding Pattern |
: |
Finance under this scheme is limited to Rs. 500 lakhs and is available for purchase of identifiable items of
plant & machinery and other equipment including energy saving systems for
modernisation/ expansion/ balancing/ replacement or for any other purpose except for a new
project. Imported items of machinery and equipment are also eligible for financing.
Second-hand items are however not considered for financing under this scheme. The debt
equity ratio under this scheme does not exceed 1.5:1. |
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Description |
: |
Under this scheme,
quick financial assistance is available to existing small and medium industrial units
which are otherwise eligible for financial assistance from HPSIDC and have
good record of past performance and enjoy sound
financial position |
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Beneficiary |
: |
Any
other |
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Type |
: |
Loan |
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Details |
: |
Financial assistance
under this scheme is at the prevailing interest rates. Repayment of the loan is required
to be made within a period of 2 + 6 years inclusive of moratorium of 6-12 months depending
upon the repayment capacity of the borrower.
NOTE:-The rate of interest,
margin and debt equity ratio for availing financial assistance under various schemes as
mentioned above are subject to modifications/changes from time to time as may be made by
the IDBI/SIDBI or by HPSIDC. The norms regarding debt equity ratio and margin on security
can also be varied depending upon the nature/ individual merits of a case.
At present rate of interest on loans are 10.25% p.a. Rebate of 0.5% p.a.
allowed in case the installments are paid on or before due dates.
The interest on the loans advanced by the
Corporation is payable on quarterly basis.
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Eligibility Criteria |
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have been in operation for at least four years;
have earned profit and/or declared dividend on equity shares
during the preceding two financial years; and
not be in default with any institution/bank in the payment of
their dues.
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How to Avail |
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The
term loan processing fee (non- refundable)
charged by HPSIDC is Rs.350/- per rupees one lac of loan. The applicant is also required
to deposit an imprest amount of Rs.5,000/- along with processing fee.
The APPLICATION
FORM for TERM LOAN may be obtained on payment of Rs. 100.00 only. |
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Reference URL |
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http://hpsidc.gov.in/finschem.htm |
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Keywords ( To Facilitate Search) |
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Loans, Schemes |
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PROCESSING FEE |
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The appraisal
fee shall be Rs.500/- per lac of the term loan considered for sanction and shall
be levied on following terms/schedule :-
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The Corporation shall charge a
non-refundable upfront sum of Rs.1000/-
(plus service tax if applicable) on account
of part of processing/appraisal fee from the
applicants. The same shall not be refunded
at any stage even if the proposal is
rejected at pre-appraisal stage or the
applicant refuses to avail the loan.
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In case it is decided by the HPSIDC to take
up the proposal for appraisal, 25% of the
processing fee (inclusive of upfront amount
of Rs.1000/-) plus service tax if applicable
plus imprest of Rs.5000/- shall be deposited
by the applicant before the appraisal of the
case is taken up.
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In case of the appraisal being entrusted to
outside agencies, the amount of appraisal
fees to be paid to the appraising agency as
per prevailing norms of HPSIDC (inclusive of
upfront amount of Rs.1000/-) plus service
tax if applicable plus imprest of
Rs.10,000/- shall be deposited upfront by
the applicant before appraisal of the
proposal is undertaken.
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If after the conduct of the appraisal of
the project and placing the case before the
concerned competent authorities for sanction
of the term loan in question, the competent
authority rejects the proposal or where the
applicant refuses to avail the loan after
sanction but before executing the loan
documents , then and under such
circumstances/conditions, 25% of processing
fees less the upfront fees of Rs.1000/-
subject to a maximum of Rs.35,000/- shall
be deducted and the balance shall be
refunded to the applicant. The imprest
amount of Rs.5000/- shall however not be
refunded. No refund of the appraisal fee or
imprest amount as deposited under (iii)
above shall be applicable in case the
appraisal is conducted through outside
agencies.
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In case of sanction of the term loan, the
balance 75% of the appraisal fees or the
balance appraisal fee after payment of
appraisal charges to outside agency (as the
case may be) plus service tax if applicable
shall be deposited by the applicant before
executing the loan documents without which
the loan documents shall not be executed.
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Where the applicant, after sanction of loan
executes the legal documents and thereafter
does not avail the loan for any reason
whatsoever, then and in that case, the
entire processing fees inclusive of imprest
amount shall be forfeited and no refund
shall be made to the applicant.
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ESCORT SERVICES :
The HPSIDC
also provides escort services to entrepreneurs to set up suitable projects in the State.
Such services include assistance to entrepreneurs in obtaining statutory clearances/
permissions from Central/ State Government agencies/ departments/ organisations
identification of suitable sites for the projects and representing/acting on behalf of the
entrepreneurs before the Central/ State Government agencies/ departments/ organisations
and also filing applications on their behalf. The HPSIDC charges nominal service charges
for such services which are to the tune of 0.5% of the project cost subject to a minimum
of Rs.25,000/- plus reimbursement of actual expenditure.
SALE Of TAKEN OVER UNITS :
From time to time
the HPSIDC puts to sale (through tender) the assets of units taken over by the Corporation
which have been unsuccessful or were not in a position to repay the loans availed by them.
Advertisements for such sales are published in prominent newspapers from time to time.
AVAILABILITY Of INDUSTRIAL PLOTS :
The HPSIDC has
developed an industrial area with all modern amenities at Baddi in Solan district of
Himachal Pradesh which has been sold out. However a few plots become available from time
to time which are disposed of through auctions which are extensively advertised through
the press. Plots are also available in Industrial Estates of the Industries Directorate in
different parts of the State.
APPROACHING THE CORPORATION :
HPSIDC welcomes
entrepreneurs to set up industrial units in Himachal Pradesh and would be happy to assist
the in all possible manner. Entrepreneurs may contact the Senior Manager (Planning &
Dev.)
HPSIDC Limited, New Himrus Bhawan, Circular Road, Shimla - 171001 (HP);
PH: 2624751 (Ext. 502), 2621426, FAX: 2624278.
Email: hpsidc@sancharnet.in,
sidc-hp@nic.in
BENCH
MARKS FOR CONDUCT OF PROJECT APPRAISALS
1. RECEIPT
OF APPLICATION AND THRESHOLD ANALYSIS:
Within two
days of receipt of the term loan application,
it shall be decided
as to whether the project specific is to be taken up for term loan
appraisal or not.
The decision shall thereafter be communicated immediately to the
applicant and in case the appraisal is to be conducted, the check list of
the queries shall be dispatched to the applicant by post/email/fax.
2.
CONDUCT
OF APPRAISAL:
After the
in-principle approval,
the appraisal of the case shall be completed within a maximum
period of one month subject of course to compilation of all information,
site visits, one to one discussions with the entrepreneurs etc.
3. DISCUSSIONS
ON DRAFT APPRAISAL:
Immediately
after completion of the appraisal, discussions shall be held
on
the draft appraisal.
Based on the discussions/suggestions, the necessary
modifications/changes in the appraisal shall be carried out within a
maximum period of one week.
The entrepreneurs may also be invited for discussions if so
required.
4. CONSIDERATION
OF THE APPRAISAL REPORT
BY THE COMPETENT AUTHORITIES:
The
appraisal report shall thereafter be placed for further
consideration/approval of the competent authorities at the earliest
convenience.
NOTE:-
Check list of information/documents required to be submitted for filling
loan application is given in the loan application form.
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HPSIDC, New
Himrus Building, Circular Road, Shimla-171001 |
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