GOA: COMPOSITE LOAN SCHEME FOR EDC CLIENTS

Government of Goa has come up with a new scheme to provide loan to EDC clients by way of term loan against fixed assets and working capital term loan against current assets.

Objectives:

To provide composite financial assistance to past/existing Corporation’s clients who have/ had a good track record of loan repayment or their associate or group concerns.

The loan assistance under this scheme shall be granted for:

• Acquisition of fixed assets like land, building, plant & machinery and other miscellaneous assets and current assets for expansion, modernization, diversification, renovation. etc.
• Repayment of outstanding term loan/working capital (only standard asset) of other banks/ financial institutions.

Eligibility:
Units engaged in industrial, tourism related, service and commercial activities who have been past / existing Corporation’s clients who fulfill the following criteria:

• The promoter(s) holding 15% or more equity stake in the borrowing
  entity should have:
  a.More than 5 years business association with the Corporation.
  b.Maintained good repayment track record with the Corporation for minimum last three years of the association with the Corporation.
• This promoter(s) should have at least 15% or more equity stake in the entity in which he/she was a past/existing borrower of the Corporation.
• The repayment history & past dealings of the promoters/unit /sister concerns/group concerns with the Corporation/Banks/FIs should have been satisfactory.
• The borrower/applicant should be in operation for minimum five years and in cash profit for previous two financial years.
• The proposed property to be mortgaged should not be presently leased out/rented out and should not be leased out/rented out in future without the permission of the Corporation.
• The applicant should furnish all the required approvals and be agreeable to mortgage its immovable property as prime security.

Benefits:

The maximum amount of loan shall be subject to the following limits:

Proprietory concerns	Rs. 500.00 lakhs
Partnership firms	Rs. 750.00 lakhs
Corporate bodies/ Limited liability Partnership	Rs. 1500.00 lakhs

 The maximum limit working capital loan shall be at 40% of the above.The loan assistance could be considered up to 50% on the value of existing immovable properties i.e. land and building of the unit and additional non-agricultural properties offered as additional/collateral security by the applicant (The valuation will be carried out by the Corporation).

Area of operation:
State of Goa and the Union Territories of Daman & Diu and Dadra & Nagar Haveli.

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