LOGIN TO LUB INDIA
  • forget password
  • new visiter sign in.
MEMBERS
    Post Selling Leads
    Post Bying Leads
    NEWS LETTER
ISO
CONTACT US

Home >>Finance>> Assistance

Schemes For Financial Assistance

The following schemes are available for entrepreneurs to start new ventures and also expand existing business. The list of key institutions which are in the forefront of providing financial assistance are given below for availing the assistance from them.

Particulars to be submitted for financial assistance

Most entrepreneurs require financial assistance either at the time of starting the project or during its modernization or expansion. All financial Institutions require certain information to be given in order to assess the application for financial assistance. The information required can be classified into these broad categories:

General

Name and form of the organisation, date of Incorporation / Registration, date of commencement of business, location of the concern, sector the business belongs to, nature of the industry, whether the project is new or if the assistance is for expansion, modernization or diversification, kind of financial assistance required, whether foreign currency required etc.

Details Of Promoters

Bio data of all the promoters, details of other concerns promoted by them, in case of promotion through another company, then details of that company, its activities and past performance.

Details Of The Project

Details relating to the project in the following areas are required.>?

  • Type of project including the technical process, advantages / disadvantages of alternate processes, labour required, employment potential, application of the process already existing in the country etc.
  • Details of capacity including present installed capacity, proposed capacity, present production, future production targets, details of products and by products etc.
  • Technical arrangements made or proposed to be made, details of collaborator with copies of agreements, government approvals required, approvals obtained with copies of the same.
  • Details of management, particulars of key personnel, organisation chart, cost and budgetary control systems proposed.
  • Location of the plant, land required, details of land already acquired and proposed, Copy of Sale / Lease Deed, permissions obtained from the government.
  • Buildings required and construction details, copy of the Plan and layout, Proximity to Railway Station / Port, sources of Power and Water, layout of roads etc.
  • Plant and machinery required, acquired, whether imported or local.
  • Raw materials required, price and Sources, details of arrangements for obtaining raw material, mining lease, if any etc.
  • Details of sources of power and water, transport arrangements etc.
  • Details of pollution control steps taken, nature of pollution likely to be caused etc.
  • Details of pollution control steps taken, nature of pollution likely to be caused etc.
  • Labour and manpower details, requirement and availability of labour, housing and other benefits provided or proposed to be provided.
  • Details of the implementation schedule to be followed.

Cost of the project

Cost of the project under various heads like land and site development, buildings, plant and machinery, technical know how, foreign training, margin money for working capital.

Means of Finance

Means of finance envisaged divided into equity share capital, debentures, rupees and foreign currency loans, internal accruals, promoters’ contribution, details of security proposed to be offered.

Marketing and selling arrangements

Marketing and selling arrangements with a copy of the market survey report, details of product, scope of market, details of competition, demand for the product, selling arrangements, pricing details.

Profitability

Profitability; estimate of cost of production, cash flow projection, break even capacity level etc.

Economic considerations

Economic considerations like prices of competitors, import/export products, details of duties, taxes and incentives, economic benefit to country on account of the project, contribution to establishment of ancillary industries.

Government approvals

Government approvals like licenses, permission, clearances, etc.

Schemes

Scheme Eligibility Purpose Limit

General Loans

 All Proprietary, Partnership, Private/Public Limited Companies, Industrial Co-operative Societies for establishing tiny, small scale and medium scale industrial units and service oriented industries For acquiring assets for setting up new units and for expansion, diversification and modernisation in case of existing units. Project cost should not exceed Rs 12.00 crores.

Equipment Refinance Scheme

 Existing well performing small and medium scale units: -Assisted by the Corporation, or by any other State/Central financial institution. Bank /self-Financed. -Units should be in operation for atleast 4 years from the date of commercial prodn., earned profits/declared dividends, during immediate preceding 2 years, not defaulted in repayments to institutions / bank. For acquiring identifiable items of plant and machinery/other equipments including energy saving systems, for modernization/ expansion balancing/ replacement or any other purpose except new projects Project cost including proposed eqpt. Should not exceed Rs. 12.00 crores.

Modernization Schemes

 Existing tiny, village, small and medium scale units, which are in operation atleast for 5 years. In case of replacement/renovation, the machinery should have been in use in the unit for a period atleast 5 years. Mere replacement of machinery or solely for expansion of capacity are not covered.

Assistance for modernization. -Upgradation of process/Technology & product -Export oriented -Import-substitution -Energy Saving -Anti-pollution measures -Conservation/ Substitution of scarce raw materials. -Improvement in capacity utilization through increase in productivity and de-bottle necking.-Improvement in material handling etc.,

 Total Project cost: Not to exceed Rs.12 crores.

Schemes for Hostels / Motels / Restaurants

 Entrepreneurs setting up Hostels/Motels/ Restaurants projects For construction of Janata/single star/Two star/Three Star hotels, setting up of restaurants with motel projects with wayside restaurants and lodging facilities of about 10 rooms/dormitory. Assistance is considered to acquire land, building, plant & machinery, kitchen equipment, furniture & fixtures, crockery & cutlery, etc. -Approvals from Dept of Tourism, Govt. of AP and Govt. of India. -Muncipal approval for building plans. -Minimum standards fixed by State/Central governments. -For motels on par with Janata Category -Minimum land area required for: Janata Hotel :500sq.yds 1&2 Star Hotels:750sq yds. 3 star Hotels:1000 sq. yds

Scheme for Tourism Related Facilities

 Entrepreneurs setting up Tourism Related activities For setting up of -Development of Amusement Parks -Cultural Centres/ Conventional Centres, Restaurants. -Travel, Transport and -Tourist Service Agencies Cost of project: Need-based -Approvals from Tourism Dev. Agencies.

Assistance to hospitals / Nursing Homes

 Entrepreneurs setting up Allopathic Nursing Homes/Hospitals having qualified PG Doctors(MD/MS) on full-time basis having a minimum bed strength of 10. Ayurvedic/Homeopathic/ Unani/Naturopathy Nursing Homes are not eligible. -For setting up Nursing Homes/ Hospitals. For expansion/ modernization of existing nursing homes. -Assistance for land, building, medical equipment including diagnostic and therapeutic eqpt., air-conditioners, ambulance etc. Cost of project: Need based Not exceeding Rs.12.00crores per project

Assistance acquiring Electro-medical eqpt.

 Qualified medical practitioners use/Entrepreneurs employing qualified Doctors. -For acquiring Electro-medical/other related equipment Cost of project: Need based Cost of equipment up to Rs. 60.00lakhs- Refinance from SIDBI. Above Rs.60.00 lakhs-Refinance from IDBI.

Assistance for DG sets

 Any existing unit -For acquiring DG sets Standard Make.

Scheme for acquiring Borewell Drilling Rigs

 All entrepreneurs who propose to acquire Borewell Drilling Rigs. propose to acquire Borewell Drilling Rigs. -For acquiring Borewell Drilling Rigs with Transport vehicle chassis. Project cost: Need based.

Civil Contractors Scheme

 Proprietary/Partnership Firms, Private/Public Limited companies of Class I &II Civil Contractors. -For working capital to meet short term working capital (maintenance expenses) requirements. Proprietary & Partnership Firms: upto Rs.120 lakhs Private & Public Ltd Companies:upto Rs.240 lakhs.

Assistance for setting up Industrial Estates.

 Any entrepreneur interested for development of contiguous land into industrial estate/area. Minimum land required 10 acres. Proposals should include construction of industrial sheds. -For purchase of land, cost of land development, cost of stamp duty etc, for development of infrastructural facility such as approach roads, drainage, water supply system, power distribution ines, central effluent treatment plant, construction of industrial shed/multi-storied industrial bldgs, etc., Cost of project not exceeding Rs.12.00crores.

Scheme for Qualified Professionals

 Qualified professionals in the fields of Management, Accountancy, Medicine, Engineering etc. for setting up own professional practice/consultancy ventures and for acquiring additional equipment for existing/established professional firms. Assistance for acquiring land, building, furniture & fixtures and related equipment. Cost of land&building should not exceed 50% of total project cost. Cost of project below Rs.20.00 lakhs.

Single Window Scheme

 New tiny and SSI units To provide term loan and Working Capital Term Loan. Venture outlay shall not exceed Rs.100.00 lakhs including working capital

Scheme for Technology Development and Modernisation.

 for Technology Development and Modernisation. Sole proprietary, partnership firms, Co-operative Societies, Private & Public Limited Companies of small scale industrial units including ancillary units which are going in for modernization/ technology upgradation which should be in operation for 3 years and not defaulted to institutions and banks. For purchase of capital equipment, need-based civil works, acquisition of land, acquisition of technical know-how, designs, drawing, upgradation of process technology and products, improvement in packaging, cost of TQM and acquisition of ISO 9000 series Certificate and additional/ incremental margin money for working capital. Project outlay not to exceed Rs.100 lakhs. Outlay on land and building should not exceed 25% of the project cost. Minimum promoters contribution 25% of the project cost.

Poultry Farm Scheme

 New and experienced promoters are eligible to set up poultry farms of layers/Broilers/Parental broilers with minimum of 15,000 birds capacity. Assistance for acquiring land, construction of civil works, machinery and initial stock of chicks, feed, medicines and vaccines. Project cost: Need based.

National Equity Fund Scheme

 New projects in tiny and SSI sectors irrespective of location. Existing tiny & SSI and service enterprises except transport operators undertaking expansion/modernization, technology upgradation and diversification irrespective of location. Sick units in tiny & SSI sector including service enterprises. Units in Metropolitan area, projects which avail of any margin money or seed/special capital assistance under Schemes of Central/State Governments, SFCs and other State level institutions or banks (except State investment subsidy) are not eligible for assistance. For acquiring assets to establish tiny and small scale units. exceeding Rs.10.00 lakhs for new units and for existing projects including outlay on modernization /expansion etc. Promoters contribution: Minimum of 10% of project cost. Soft loan: 25% of project cost with 1% service charge. DER-1.857:1
Other Schemes

Composite Loan Scheme

 For setting up units in cottage, village and tiny sector and in places where the population is less than five lacs. However, the population restriction does not apply to artisans. For equipment and/or working capital as also for worksheds. Project cost not exceeding Rs.50,000/-Promoters contribution-Nil

Scheme for SC/ST Entrepreneurs

 Entrepreneurs belonging to SC/ST community For setting up industrial and service units For projects less than Rs.50,000/- Promoters contribution-Nil

Scheme for Physically handicapped persons.

 Physically handicapped entrepreneurs. For setting up industrial and service units For projects less than Rs. 50.000/- promoters contribution-Nil

a) Merchant Banking Working Capital Term loan

 Existing units assisted by the Corporation/units availed term loan not less than Rs.5.00 lakhs earlier and have closed the loan account/units financed by the Corporation and in operation for more than 3 completed years and have earned net profits for the last 3 years, regular in repayment to the financial institutions, should not have availed reschedulement facility more than once from the corporation. Assistance below Rs 150 lakhs to meet short term working capital requirements of existing units and other purposes, except for speculative purposes, except for speculative purpose. Loans above Rs.50.00 lakhs are considered for short term working capital requirements only. Total assistance to all the associated units of a group of companies shall not exceed Rs.300.00 lakhs. Loan shall be a minimum of Rs.150 lakhs Loan shall be secured by collateral security of 150% Loan repayment period: For loans upto Rs.10.00 lakhs – 12 months From Rs.10.00 lakhs to Rs.25.00 lakhs 18 months From Rs.25.00 lakhs to Rs. 50.00 lakhs-24months From Rs.50.00 lakhs to Rs.150.00 lakhs-36 months above Rs.150.00 lakhs to Rs.240 lakhs repayment shall be fixed on case to case basis.

b) Bill Discounting (Purchase Bills)

 Only well-established and reputed companies having proven track record with a minimum 3 years of operation, earned net profits for the last 3 years, with satisfactory bankers opinion, should not have defaulted to financial institutions/banks and should not be in arrears or statutory dues. -Facility shall be extended for industrial products / components / raw materials etc., for the borrower concerns towards working capital requirement other than consumables. Maximum limit for sanction Rs.90.00 lakhs. The sanction limits shall be secured by collateral security of urban immovable property to the extent of 150%

c) Public Issue Appraisal

 Pre-issue appraisals Public issue management such as working as lead managers, Co managers, participation in equity, underwriters to the issue, Capital Structure, Loans Syndication etc.

d) Equipment Lease

 Industrial concerns eligible for availing term loans from the Corporation falling under categories of A++ and A+ category of Good Entrepreneurs. For acquiring new equipment form standard and reputed suppliers. The cost of the equipment shall be Rs.10.00 lakhs and above. Maximum assistance shall not exceed the value of productive equipment /machinery owned by the industrial concern. Maximum assistance is Rs.150.00 lakhs in case of Corporation /Companies, Rs.90.00 lakhs in case of partnership concerns and Rs. 60.00 lakhs in case of sole proprietary concerns. The lease period shall not be for more than 3 years.

e) Hire Purchase assistance

 Industrial concerns assisted by our Corporation falling under A++ and A+ categories good entrepreneurs having proven track record with a minimum 3 years of operation, earned net profits for the last 3 years, with satisfactory banker’ opinion, should not have defaulted to financial institutions/banks and should not be in arrears or statutory dues. For acquiring machinery/equipment of general purpose nature and special purpose nature having high saleability and shall be procured from standard and reputed suppliers. The cost of the equipment shall be Rs.10.00 lakhs and above. Maximum assistance shall not exceed the value of productive equipment /machinery owned by the industrial concern. Maximum assistance is Rs.150.00 lakhs in case of Corporation /companies, Rs. 90.00 lakhs in case of partnership concerns and Rs, 60.00 lakhs in case of sole proprietary concerns. The repayment period shall not be for more than 3 years.

A List of Key Financial Institutions Involved In Financing The Above Schemes.

  • INDUSTRIAL FINANCE CORPORATION OF INDIA (IFCI)
  • INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA (ICICI)
  • INDUSTRIAL DEVELOPMENT BANK OF INDIA (IDBI)
  • EXPORT-IMPORT BANK OF INDIA (EXIM BANK)
  • INDUSTRIAL RECONSTRUCTION BANK OF INDIA (IRBI)
  • SHIPPING CREDIT AND INVESTMENT CORPORATION OF INDIA (SCICI)
  • INFRASTRUCTURE LEASING AND FINANCIAL SERVICES LTD. (IL&FS)
  • TECHNOLOGY DEVELOPMENT AND INFORMATION CORPORATION OF INDIA LTD. (TDICI)
  • RISK CAPITAL AND TECHNOLOGY FINANCE CORPORATION LTD. (RCTFC)
  • TOURISM FINANCE CORPORATION OF INDIA (TFCI)
  • NATIONAL BANK FOR AGRICULTURAL AND RURAL DEVELOPMENT (NABARD)
  • NATIONAL SMALL INDUSTRIES CORPRATION (NSIC)
  • STATE FINANCIAL CORPORATIONS (SFCs)
  • STATE INDUSTRIAL DEVELOPMENT CORPORATIONS
  • STATE INDUSTRIAL INVESTMENT CORPORATIONS (SIICs)
  • STATE SMALL INDUSTRIES DEVELOPMENT CORPORATIONS (SSIDCs)
  • SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA (SIDBI)
  • NATIONAL CO-OPERATIVE DEVELOPMENT CORPORATION (NCDC)