| Particulars |
Details |
| Size of financial assistance |
Rs.20 lakh to Rs. 15 Crore
[Maximum aggregate assistance not more than two times the current net worth of the Company]. |
| Tenure of financial assistance |
Up to 10 years including moratorium period. |
| Instruments for investment |
- Equity/ Optionally Convertible Preference Shares / Compulsorily Convertible Preference Shares;
- Compulsorily Convertible Debentures, Optionally Convertible Debentures, Non-Convertible Debentures, etc;
|
| Funding Pattern |
Investment under the fund will be categorized as follows:
- Financial assistance upto Rs.5 Crore - Investment under this category shall be funded maximum upto 75% of the project cost and the balance 25% of the project cost will be funded by the promoters;
- Financial assistance above Rs.5 Crore –
- Investment under this category shall be funded maximum upto 50% of the project cost. At least 25% of the project cost shall be funded by promoters and balance 25% of the project cost can be funded either by promoters or by the bank or any other Financial Institutions as the case may be.
|
| Moratorium period for redemption of principal |
On case to case basis but not more than 36 months from the date of investment in the Company. However, interest/ coupon payment shall commence from date of investment in the Company at a regular interval as determined by the Investment Committee of the fund. |
| Returns/ Coupons/ Interest for financial assistance |
- Equity instruments -6% p.a.
- Debt/Convertible Instruments- 6% p.a. (For women*/disabled** entrepreneurs -5.75% p.a.)
*For considering a company owned by a BC women entrepreneur, the BC women entrepreneur should hold at least 51% of the shareholding in the company and should be the Managing Director of the Company;
** In the case of disabled entrepreneurs, guidelines issued by the Department of Empowerment of persons with Disabilities for qualifying as disabled would be followed.
|
| Moratorium period for redemption of principal |
On case to case basis but not more than 36 months from the date of investment in the Company. However, interest/ coupon payment shall commence from date of investment in the Company at a regular interval as determined by the Investment Committee of the fund. |
| Security |
- The assets of the project being funded/ assisted under the scheme shall be charged for security. The project assets will include land, building, plant & machinery and rights on licenses/ patents.
- Pari-pasu charge on assets with the Banks/FIs in case of the companies applying for assistance of more than Rs.1 Crore.
- 2nd charge of the assets created out of the investment where the 1st charge in held by the Bank/FIs.
- In addition to the charge on assets, post-dated cheques and promissory notes shall be taken.
- Personal guarantees of the promoters along with buyback agreement shall be entered.
- Pledge of Shares held by promoters and forming at least 26% stake of the Issued and Paid up capital shall be taken. However, the percentage of pledged shares would be decided on case to case basis.
- In case adequate mortgage is not available, the borrower may arrange collateral and corporate guarantees from family / friends / associates / group companies.
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