Objective

• It is provided to the contractor to start it's operation upon the receipt of contract for
  any construction activated .

Tenure

Tenure of loan will be from short to medium term i.e. less than 3 years.

While granting this type of loan, payment to be received by the contractor from this project can be deposited in the account of such contractors maintained in the bank.

Promoters’ Contribution

• Minimum 30%..

Debt Equity Ratio

• Maximum up to 70:30.

Interest Rate

• Interest is payable quarterly( Ashwin end, Poush end, Chaitra end & Ashad end ).

Repayment

• Maximum up to 1 year with revolving facility at the discretion of NDBL.
• In the event of non-payment of any installment or in the event of any other
  irregularity continues, in such a situation a penalty will be levied as per the
  Bank’s  regulations.

Documentation

• Loan Agreement Paper.
• Sole & first charge over Inventory & Accounts Receivable.
• Personal Guarantee.
• Corporate Guarantee, if necessary.
• Promissory Note.
• Internal loan Commitment Paper.
• Registration/Tax Clearance Certificates (including VAT).
• Articles of Association and Memorandum of Association.
• Loan Authorization Letter ( Board Minute ).