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GUIDELINES FOR SANCTION OF SHORT TERM LOANS
( STLs )
A) GENERAL
1). Purpose is to cover immediate needs of the company, in the normal course of business activity.
2). The end use of the funds provided by APIDC shall not be for Speculative and Real Estate purpose.
3). Tenure of the loan shall not exceed 18 months with a moratorium of 3 months and repayment shall commence
immediately after 3 months.
4). In case the loan tenure is 1 year or less, the moratorium shall be 1 month and repayment shall commence immediately after
1 month.
5). Assistance shall not be less than Rs.20.00 lakhs and more than Rs.50.00 lakhs.
6). Loan shall be repaid in monthly installments and interest
shall be paid with quarterly rests.
7). Concern shall arrange post-dated cheques towards repayment of loan and interest.
8). The party shall pay Service charges at 0.25% and Up-front fee at 0.5% of the Sanctioned amount.
9). Rate of interest - 12.50% p.a. with quarterly rests
10). Request from the customer for sanction of Short Term Loan shall be made in the prescribed application form.
B) ELIGIBILITY CRITERIA
11). Assistance is available to industrial concerns defined under IDBI Act,1964.
12). Concerns availing Bills Discounting facility from APIDC are not eligible.
13) Concerns shall be up to date in its payments to FIs / Banks. In this regard, opinion shall be obtained from the concerned.
14) Concern should have been in existence for a minimum period of 3 years and shall have reported CASH PROFITS for at least 3 years
or
Concern should have been in existence for a minimum period of 5 years and shall have reported NET PROFITS for at least 3 years out the preceding 5 years.
15). Financial position in terms of net worth, profits, DSCR and turn over shall be satisfactory.
16). Concern shall provide Collateral security of Urban Immovable property to the extent of 125% of the loan besides personal guarantee of the chief promoter or any third party with adequate solvency.
17). In respect of existing assisted units of APIDC and/or APSFC, Pari -passu charge on fixed assets shall be taken. Pari -passu charge on fixed assets in respect of any other class of borrowers may also be taken.
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1/1/2006
 
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