LENDING BY ALL INDIA FINANCIAL INSTITUTIONS COMMON FEATURES AND COORDINATION WITH BANKS

Ø Projects costing upto Rs. 5 crores

Ø Projects with Term Loan Component exceeding Rs. 5 Crores

Ø Commercial Bank vis‑a‑vis Granting of Term Loans

Ø Prudential Exposure Norms for Banks

Ø Credit Exposure to Industry or Certain Sectors

Ø Exposure to Unsecured Guarantees and Unsecured Advances

Ø Prudential Exposure Norms for Financial Institutions

Ø Proposal for Assistance

Ø Debt Equity Ratio

Ø Norms of Debt Equity Ratio

Ø Promoter's Contribution

Ø Schedule of Rates of Interest, Fees and Other Charges in relation to Project Finance

Ø General Conditions Applicable for Assistance

Ø Convertibility Clause

Ø Nomination of Director

Ø Repayment Period of Loans

Ø Documentation and Disbursement of Rupee Term Loans

Ø Disbursement and Utilisation of Loan

Ø Charging of Securities

Ø Registration of Charge

Ø Co‑ordination between Banks and all India Financial Institutions: Sanctioning of Term Loans and Working Capital Limits by Banks

Ø Association of Commercial Banks with the Project Appraisal Undertaken by all India Financial Institution

Ø Financing of Cost Overrun of Projects

Ø Sanction of Timely Working Capital Facilities and Release of Funds for Meeting Need‑based Requirements

Ø Stipulation of Shorter Period for Repayment of Term Loans Extended by Banks Provision of Adequate Margin Money by Financial Institutions while Computing the Project Cost

Ø Issue of Deferred Payment Guarantees (DPGs) by Banks Exclusively for Financing of Project

Ø Stipulation of Bank Guarantees Against Term Loan Granted by Financial Institutions

Ø Co‑ordination between Financial Institutions and Banks in case of Modernisation/ Expansion/Diversification of Existing Units

Ø Grant of Term Loans for Import of Second Hand Machinery