CONTRACTORS CREDIT SCHEME


1. The Scheme:  

          To extend financial assistance to Class I & II categories of approved contractors of State Government and State Government Agencies for meeting their working capital requirements to execute the civil, mechanical and electrical and other work orders entrusted with them.

2. Eligibility:   

  • Registered Class I & II  contractors of State Government / State  Government Agencies – both MSME and Large Enterprises.

  • The unit should be in existence and in operation for the past two financial years and should have earned cash profit for the last two financial years.

  • The networth of the units should be positive.

  •  The units  should be in standard assets category of TIIC /Banks for the last  two financial years.

3. Quantum of Loan :  

           Loan shall be 75% of the total project cost i.e. the work order value less the cost of materials and any advance given by the work issuing authority.

The minimum quantum of assistance shall be Rs.20 lakhs and maximum quantum of assistance shall  be Rs.5 crores for limited companies and Rs.2 crores for proprietary / partnership firm.

4. Promoter's Contribution: 

Promoter’s contribution shall be minimum 25% of the total project cost.

5. Debt Equity Ratio:    

         The overall Debt Equity Ratio for the concern shall not exceed 2:1 including assistance under the scheme.

6. Repayment:    

         The repayment period shall be  flexible subject to a maximum of 5 years including a moratorium of 6 to 18 months  depending upon the nature of the project and the repayment shall be in  monthly instalments.  Repayment shall not exceed 12 months beyond the tenure of the project.

 
7. Collateral Security :   

        Collateral security to the extent of 150% of the loan sanctioned shall be stipulated.

Page modified on 21.12.2016

 

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