WORKING CAPITAL TERM LOAN SCHEME FOR EXCLUSIVE JOB WORK UNITS


1. The Scheme:  To extend financial assistance to MSME assisted and non-assisted job work units, which are exclusively undertaking job works (not partly own manufacturing and partly job work units) to meet their working capital / additional working capital requirements.

2. Purpose:    The purpose of the loan is to provide working capital funds against consumables and bills receivable of the job work nature.

3. Eligibility:  

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

  • Units set up with own funds are also eligible only when they approach for both term loan and WCTL. Such units should have earned net profit for last two years. 

4. Quantum of Loan :  The minimum quantum of assistance shall be Rs.10 lakhs and maximum quantum of assistance shall be Rs.50 lakhs per unit.

5. Promoter's Contribution:  Promoter's Contribution shall not be less than 25% of the working capital assessed. 

6. Debt Equity Ratio:    The overall Debt Equity Ratio for the concern shall not exceed 2:1 including working capital term loan.

7. Repayment Period :  The repayment period shall be 42 months including a moratorium of 6 months (for first time assistance only) and the repayment shall be in equal monthly installments. 

9. Quantum of Collateral Security:
 
Category of Units % of Collateral
Assisted units of TIIC without any bank finance / bill finance facility 100%
Assisted units of TIIC with any bank finance / bill finance facility 150%
Non-assisted units of TIIC with or without any bank finance / bill finance facility 150%

Page modified on 07.05.2015 

 

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