How to avail loan Policy Documentation
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When disbursement starts

Disbursement of sanctioned loan will start only after execution of loan documents.

Where disbursement is made

Disbursement in all loan cases irrespective of loan amount except joint finance case is made from branch offices. In joint finance cases, the disbursement is made at HO.

Procedure for disbursement of loan

Disbursement of loan is made after ensuring capital contribution and unsecured loans have been raised in full by the promoter which is corroborated from C.A. certificate.

(i) Disbursement against Land: -

Disbursement of loan against land is made on the basis of payment receipts submitted by the loanee unit for purchase of land/conversion charges paid to State Govt. /RIICO

(ii) Disbursement against Building: -

Disbursement of loan against construction of building is made on the basis of valuation of building and construction material lying at factory site.

(iii) Disbursement against Plant & Machinery: -

Disbursement of loan against Plant & machinery and MFA is made on the basis of valuation of assets created at factory site and after submission of bills, payment receipts etc.

The bills and payment receipts for petty items valued upto Rs. 250/- for each item subject to maximum of 5% of the cost of Plant & machinery is not insisted upon .Individual bills and payment receipts for expenditure incurred on erection and installation of plant & machinery, electrification and misc. items like tools, jigs etc. are not required but a statement of expenditure showing itemwise details in this regard duly certified by a C.A. to the extent of provision made in approved scheme are required to be submitted by the loanee.

Cash payment exceeding Rs. 10,000/- against single bill/ invoice except statutory payment to RIICO, RFC, RSEB, Commercial Banks etc. is disallowed for the purpose of disbursement of loan.

In case of company, disbursement of loan exceeding 50% or second disbursement is made only after the company submits copy of returns under section 125 of the Companies Act alongwith copy of receipts of filing fee deposited with Registrar of Companies concerned to the Corporation.

In case of imported Plant & machinery, the Corporation may provide Letter of Comfort to designated bank for opening letter of credit on the request of the loanee unit.

The Corporation may provide letter of assurance to the supplier of Plant & machinery on the request of party for making earmarked amount of payment against machines to be supplied by the supplier.

In case of change in supplier of Plant & machinery, Corporation may consider approval of change in supplier/ specifications of plant & machinery if changes are made for genuine reasons.

Corporation may also consider necessary excess saving adjustment against building, plant & machinery, MFA.

Disbursement of loan is also made for retiring bank documents against despatch of Plant & machinery from the approved manufacturer/ supplier on production of bank intimation, copy of invoices, transport receipts, transit insurance and after verification of goods at transporters site.

Procedure for quick disbursement

(i) Disbursement in all company cases or the cases other than company where party has offered minimum 50% collateral security of the sanctioned loan, Corporation may release three advance instalments of disbursement but each such instalment would not be more than 25% of sanctioned loan amount. First instalment is released on the basis of CA Certificate provided the unit has raised its entire paid-up share capital and unsecured loan envisaged in the approved scheme, complied the requisite terms and conditions of sanction letter and submitted an undertaking that investment on land, building, plant & machinery has been made in accordance with the title of land, approved building plan, approved supplier of plant & machinery. The subsequent advance instalment is made only after watching proper utilisation of earlier advanced instalment of loan.

(ii) Disbursement of loan may be made on the basis of proforma invoice in respect of plant & machinery supplied by the reputed supplier specifically approved by the Corporation.

(iii) Disbursement of loan in case of existing marble units going for expansion of project, disbursement to the maximum extent of 50% of sanctioned loan against plant & machinery may be made in advance after compliance of certain formalities /norms.

(iv) In case of tourism related projects, disbursement of loan is made in 4 equal instalments. Advance disbursement may be considered provided disbursed amount is adequately secured by existing assets. Subsequent advance disbursements are made only after watching utilisation of earlier advanced instalment of loan made to the unit.

Whom to approach for valuation

For carrying out valuation of the assets, approach be made to Branch Manager.