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		GUIDELINES FOR SANCTION OF MEDIUM TERM LOANS ( MTLs)

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 36 months with a moratorium of 6 months and repayment shall commence immediately after 6 months.
4).	In case the loan tenure is 2 years, the moratorium shall be 3 months and repayment shall commence immediately after 3 months.
5).	Assistance shall not be less than Rs.50.00 lakhs and maximum of Rs.200.00 lakhs.
6).	Concern shall arrange post-dated cheques towards repayment of loan and interest.
7).	Loan shall be repaid in monthly / bimonthly installments and interest shall be paid with quarterly rests.
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 - 11.50% p.a. net with quarterly rests
10).	Request from the customer for sanction of Medium 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 on the credentials of the company shall be obtained from the concerned.
14).	Concern should have been in existence for a minimum period of 3 years and shall have reported NET PROFITS for all the 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, including the immediate preceding year.
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.




	RIGHT TO INFORMATION ACT 1/1/2006

Copyright 2001, APIDC