RAJASTHAN FINANCIAL...

- 1 - RFC/P&G/1377

RAJASTHAN FINANCIAL CORPORATION

(CREDIT APPRAISAL SECTION) Udyog Bhawan,

Tilak Marg, JAIPUR-302 005.

Ref. No.RFC/LA-12(76)/ 3 Dated : 01.04.2011

P&G CIRCULAR

(LA No. 570)

Reg : CONSOLIDATION OF LOAN SCHEMES. The Board of Directors in its Meeting held on

29.03.2011 approved the proposal to consolidate the existing 62 loan schemes of the Corporation into 14 schemes. A statement showing the existing and new schemes is annexed.

Detailed guidelines for new consolidated schemes are

under preparation and would be issued shortly. In the meanwhile, all branches shall w.e.f.

01.04.2011 accept new applications under the new schemes. Till detailed guidelines for the consolidated schemes are issued, the proposals would be considered and processed as per the applicable scheme prior to consolidation.

All concerned are advised to take a note of the above

and ensure compliance with immediate effect.

SD/- (UMESH KUMAR)

CHAIRMAN & MANAGING DI8RECTOR

Encl. : As Above.

Copy to :

1- Standard Circulation at HO,

2- All Branches /Sub-Offices,

3- DGM (A&I) Eastern & Western Zone

- 1 - RFC/P&G/1380

RAJASTHAN FINANCIAL CORPORATION (CREDIT APPRAISAL SECTION)

Udyog Bhawan, Tilak Marg,

JAIPUR-302 005. Ref. No.RFC/LA-13(11)/ 140 Dated : 19.05.2011

P&G CIRCULAR

(LA No. 571)

Reg : Revision in interest rate structure of the Corporation Attention is invited to guidelines regarding the

interest rate structure of the Corporation issued vide PG Circular No. 1320 dated 02.06.2010, 1322 dated 03.06.2010 and 1325 dated 14.06.2010.

Pursuant to revision in refinance rate by SIDBI vide

circular dated 20.04.2011 and increase in the rate of Interest on Bank borrowings, the Corporation has also reviewed the interest rate structure for its various loan schemes and it has been decided to revise the interest rate structure as per Annexure “A”.

The revised rates shall be applicable to the loan

cases to be sanctioned on or after issuance of circular and the loan cases sanctioned earlier but the execution of the loan documents (including token disbursement) of the same is to be done on or after issuance of circular.

All concerned are advised to take note of the above

and ensure compliance.

SD/- Executive Director

Encl. : As Above.

Copy to :

1- Standard Circulation at HO,

2- All Branches /Sub-Offices,

3- DGM (A&I) Eastern & Western Zone

- 2 -

Annexure ‘A’

INTEREST RATE STRUCTURE EFFECTIVE FROM 19.05.2011

APPLICABLE FOR MSME /NON MSME SECTOR IRRESPECTIVE OF COST OF PROJECT

S. No.

NAME OF THE SCHEME RATE OF INTEREST

1. MSME Sector Units (Industrial & Service Sector) Upto Rs. 50,000/.

11.00%

2. MSME Sector Units (Industrial projects) above Rs. 50,000/- & upto Rs. 20.00 Crores.

12.25%

3. a) Scheme for Financing Against Assets b) Scheme for Financing for Builders/commercial /residential

complexes/ Multiplexes, Hotels, Hospitals etc. for purchase of land & building

c) Saral Scheme for SME sector

16.00%

18.00%

15.00%

4. Construction of Commercial /Residential Complexes

15.75%

5. a) Service Sector projects (excluding S.No. 3 to 4) and including Hotels, Technical/ Professional Education Projects/ Guest-House cases

b) Tourism Projects (except hotel projects), Hospitals/ Nursing Home Projects and Medical Equipment Scheme cases

12.75%

13.50%

- 3 - APPLICABLE FOR GOOD BORROWER SCHEMES

S. No


1. a) Short Term Loan Scheme (STL), Working Capital Term Loan Schemes (WCTL), Special Purpose Working Capital Term Loan Scheme (SPWCTL).

11.75%

b) Units Promoted By Good Borrower (UPGB)

11.50%

2. Working Capital Term Loan to Non Assisted Units

13.25%

3. Platinum Card Scheme 11.75%

4. Gold Card Scheme 12.00%

5.

NOTES :-

Flexi Loan Scheme 12.25%

1. In case of loans upto Rs. 5.00 lacs to SC/ST entrepreneurs the rate of interest shall be 2% less than the rate of interest applicable to other entrepreneurs in terms of PG circular No. 535 dated 7th Aug., 1993.

2. In case of loans upto Rs. 5.00 lacs, to disabled persons, a firm in which disabled person is partner having majority (not less than 51%) share, the rate of interest shall be 2% less than the rate of interest applicable to other entrepreneurs in terms of PG Circular No. 612 dated 13.06.1995.

3 The rate of interest shall be 1% less under Scheme for Women Entrepreneurs in terms of P&G circular No. 1353 dated 10.11.2010.

4. Liquidated damages in case of default shall be charged on amount in default for the period of default at rates applicable prescribed by Corporation from time to time. No interest would be charged on the liquidated damages. However, the mode of appropriation of receipts shall remain uncharged.

5. In all cases Post Dated Cheques for equated quarterly / monthly installments are to be obtained as per PG circular No. 1307 dated 28.01.2010. Cheques shall be taken for EQI/EMI based on documented rate of interest. It should be clearly stipulated that EQI/ EMI has been calculated on documented rate of interest. In case cheque is not realized, the BO shall ask the borrower for enhanced amount of EQI/ EMI by including applicable rate of liquidated damages.

- 4 - 6. a) In the loan cases where the exposure is upto Rs.5.00 Crores (including

existing outstanding loan amount and proposed sanction amount) and are considered under UPGB and STL Scheme of Good Borrowers, Scheme for Financing Against Assets, Fast Track Loan Scheme for existing borrowers under FAAS (commercial/ residential property) and Saral Scheme for SME Sector the documented rate of interest, after three years (from the date of first disbursement) shall be the prevailing rate of interest at that time or the existing rate of interest whichever is higher.

b) In all the loan/ GB cases where the exposure exceeds Rs.5.00 Crores

(including existing outstanding loan amount and proposed sanction amount), the documented rate of interest shall be reset after every 12 months during the currency of loan from the date of first disbursement and the Corporation shall charge rate of interest prevailing at that time or existing rate of interest, whichever is higher.

P&G-CIRCULAR-1383-20-06-2011-RESTRUCTURED-TUFS Page 1 of 3

RFC/P&G/1383



JAIPUR-302 005. Ref.No. RFC/ LA-15(6)/261 Dated : 20.06.2011

: PG CIRCULAR : (LA No. 572)

Reg : Restructured Technology Upgradation Fund Scheme

(TUFS).

Earlier, the Ministry of Textile, Govt. of India vide circular No. 2 (2010-2011 Series) dated 30.06.2010 directed not to issue any further new sanctions under the Technology Upgradation Fund Scheme (TUFS) till approval of additional allocations by the Cabinet Committee on Economic Affairs (CCEA). Accordingly, the Corporation issued guidelines vide P&G Circular No. 1337 dated 09.07.2010.

As per a resolution dated 28.04.2011 issued by the Ministry of Textiles, Govt. of India a Restructured Technology Upgradation Fund Scheme with certain modifications shall be now in operation from date of resolution to upto 31.03.2012.

To implement the scheme, the following guidelines are prescribed : 1) The Branches can register loan cases at BO and

appraise under the scheme (falling within the delegation authority at field level) at their level and then send detailed appraisal note to Head Office for sanction after recommendation of DLAC and Branch Manager. The case under the scheme shall be processed and appraised as per the prevailing norms strictly. The loan proposal shall also contain the schedule of implementation of project and a plan for monthwise disbursement likely to availed duly signed by the promoter(s) alongwith quaterwise


forecast of interest incentive as per the prescribed format (enclosed at Annexure “A”, “B” & “C”). The branch shall also forward the required information in the prescribed formats (as applicable) as under :- i) Annex –T : Application Form for claim of

Subsidy under Restructured TUFS by the unit to be submitted to Office of the Textile Commissioner,

ii) Annex –U : Format for online application by lending agency (RFC) for applying for Unique ID Number under TUFS,

iii) Annex –TR-I : Format for obtaining theregistration number for 10% capital subsidy under Restructured TUFS for technical textiles unit, if eligible,

iv) Appendix –I : Format for submitting the data under Margin Money Subsidy @ 15% -TUFS for SSI Textiles Units,

v) Appendix –II : Agreement for availing of Credit Linked Margin Money Subsidy under Restructured TUFS (CLMMS-TUFS) for Small Scale Textile and Jute Industries. (The same shall be executed at the time of execution of loan agreement and a copy of the same is to be forwarded to Finance Section with the claim application.)

vi) Appendix-III & IV : Format for submitting the data under MMS @ 20% -TUFS for Power Loom Sector.

vii) N-1 and N-2 for obtaining ECN from SIDBI.

2) The concerned appraisal team at H.O. shall examine the proposal received from B.O. considering the parameters of the Restructured Technology Upgradation Fund Scheme. Thereafter, a proposal with modifications, if required, shall be placed before the PC&CC for consideration and recommendation for sanction.

3) The Branches shall forward HO level loan

applications with all requisite information to HOfor processing the case under the scheme.


4) The concerned appraisal team shall maintain the complete data base record of cases received and sanctioned under the scheme and obtain ECN Number from SIDBI and also provide the required information to Finance Section for obtaining Unique ID etc. from Ministry of Textiles, Mumbai.

5) The concerned appraisal team shall submit

information in the prescribed format (annexure –U of the scheme) and other information to Finance Section for online applying to the Textile Commissioner, Mumbai & SIDBI, as the case may be, within 7 days from the date of sanction.

6) The Branch Office shall send the claims to Finance

Section after receiving the Unique ID/ECN (Eligibility Criteria Number).

7) Action for online application & submission of

related information shall be centralized by the Finance Section.

8) The DGM (Finance) is appointed as Nodal Officer for

smooth functioning and monitoring all the parameters of the Scheme.

9) The Branch Office purchase a Booklet of TUF Scheme

published by Ministry of Textile for ready reference or may refer to the website www.txcindia.gov.in for a copy of the Restructured Technology Upgradation Fund Scheme (TUFS) and updating.

All concerned are advised to take a note of above and ensure compliance of the same.

Sd/- (PRADEEP SEN)

CHAIRMAN & MANAGING DIRECTOR Encl. As above. Copy to : 1. All BOs / SOs.

2. Standard Circulation at HO.

3. DGM(A&I), Eastern & Western Zones.

http://www.txcindia.gov.in/

- 1 -

P&G-CIRCULAR-1384-21-06-2011-REVISION-IN-INTEREST-RATE-STRUCTURE-OF-THE-CORPORATION

Page 1 of 3

RFC/P&G/1384 RAJASTHAN FINANCIAL CORPORATION

(CREDIT APPRAISAL SECTION) Udyog Bhawan, Tilak Marg,

JAIPUR-302 005. Ref. No.RFC/LA-13(11)/269 Dated : 21.06.2011

P&G CIRCULAR (LA No. 573)

Reg : Revision in interest rate structure of the Corporation

Attention is invited to interest rate structure of the Corporation which was issued vide PG Circular No. 1380 dated 19.05.2011.

Pursuant to further revision in refinance rate by SIDBI w.e.f. 10.05.2011 and increase in the rate of Interest by Banks, the Corporation has also reviewed the interest rate structure for its various loan schemes and it has been decided to revise the interest rate structure as per Annexure “A”.

The revised rates shall be applicable to the loan

cases to be sanctioned on or after issuance of circular and the loan cases sanctioned earlier but the execution of the loan documents (including token disbursement) of the same is to be done on or after issuance of circular as per the existing policy.

Other terms and conditions and benefits to different

categories of entrepreneurs as laid down in PG Circular No. 1380 dated 19.05.2011 shall remain unchanged.

All concerned are advised to take note of the above and ensure compliance.

Sd/- Executive Director

Encl. : As Above.

Copy to :

1- Standard Circulation at HO, 2- All Branches /Sub-Offices, 3- DGM (A&I) Eastern & Western Zone

- 2 -

Annexure ‘A’


APPLICABLE TO MSME /NON MSME SECTOR IRRESPECTIVE OF COST OF PROJECT

S No



11.00%


13.25%

3. a) Scheme for Financing Against Assets b) Scheme for Financing for Builders/commercial

/residential complexes/ Multiplexes, Hotels, Hospitals etc. for purchase of land & building


16.25%

18.25%

15.25%

4. Construction of Commercial /Residential Complexes

16.00%

5. a) Service Sector projects (excluding S.No. 3 to 4) & including Hotels, Technical/ Professional Education Projects/ Guest-House cases

b) Tourism Projects (except hotel projects), Hospitals/ Nursing Home Projects and Medical Equipment Scheme cases

14.00%

14.00%

APPLICABLE TO GOOD BORROWER SCHEMES

S. No


1. 12.75%

a) Short Term Loan Scheme (STL), Working Capital Term Loan Schemes (WCTL), Special Purpose Working Capital Term Loan Scheme (SPWCTL).

b) Units Promoted By Good Borrower (UPGB)

12.50%

2. Working Capital Term Loan to Non Assisted Units 14.25% 3. Platinum Card Scheme 12.75% 4. Gold Card Scheme 13.00% 5. Flexi Loan Scheme 13.25%


Page 2 of 3

- 3 -


Page 3 of 3

P&G-CIRCULAR-1387-07-07-2011-DELEGATION-SANCTIONING-POWERS-IN-ISOLATED-AREAS Page 1 of 2

RFC/P&G/1387



JAIPUR-302 005.

Ref.No. RFC/ LA-16(1)/325 Dated : 07.07.2011


Reg : Delegation of sanctioning powers in cases of Industrial units to

be set-up on converted land in Isolated Areas.

Guidelines with regard to delegation of sanctioning powers in cases of Industrial units to be set-up on converted land in Isolated Areas were circulated vide P&G Circular No. 1282 dated 16.09.2009 & No. 1355 dated 23.11.2010. As directed by the Board of Directors in its Meeting held on 24.12.2010 the definition of “Isolated Area” was examined in detail and placed before the Board in the meeting held on 28.06.2011. The Board of Directors decided to categorize all areas into two, viz, “Developed Industrial Areas” and “Undeveloped Areas”. (A) Developed Industrial Areas :

i) Industrial Areas developed by RIICO.

ii) Other Industrial Areas/Industrial parks approved by the Central/State Governments.

iii) Industrial Areas developed by private parties and which have been approved by the Central/State Governments.

(B) Undeveloped Areas : i) Areas converted for industrial use and that which are within

close enough vicinity of the developed industrial areas for the entrepreneur to be able to take advantage of the infrastructure

P&G-CIRCULAR-1387-07-07-2011-DELEGATION-SANCTIONING-POWERS-IN-ISOLATED-AREAS Page 2 of 2

like roads, transports and other facilities.

ii) Areas converted for industrial use where the industry is sought to be set up because of the availability of raw material in close vicinity like mining units, agriculture produce processing units etc.

The Board of Directors has further decided that, for cases that do not fall in either (A) or (B) but which could be deserving and viable, it be provided that such cases of projects on converted land shall be considered by the Executive Committee at the Head Office. Further, it has also been decided that the sanctioning authority for all cases covered under category “B” (i.e. projects being set-up in “undeveloped area”) shall be the Executive Committee at the Head Office. Accordingly, in suppressions to earlier orders/directions all loan applications of industrial units set up/ to be set up on “un-developed areas” (irrespective of applied loan amount) received/to be received at field offices shall be forwarded to Head Office for further processing. The above amendments may be incorporated in PG at the appropriate place. All concerned are advised to take a note of above and ensure compliance of the same.

Sd/- (PRADEEP SEN))

CHAIRMAN & MANAGING DIRECTOR Copy to : 1. All BOs / SOs. 2. Standard Circulation at HO. 3. DGM(A&I), Eastern & Western Zone

RFC/P&G/1388

RAJASTHAN FINANCIAL CORPORATION UDYOG BHAWAN, TILAK MARG,

JAIPUR

Ref. No.F.RFC/LA-13(4)/345 Dated: 13/15.07.2011

: P&G CIRCULAR : (LA NO. 575)

Sub: Guidelines for receipt and registration of loan applications

Guidelines on receipt and registration of loan applications have been issued by the Head Office from time to time with a view to streamlining the processing of such applications and to render efficient services to our customers. 2. It has, however, been observed that branch managers tend:

* to obtain and register applications, with application fee,

without ensuring submission of mandatory basic documents necessary to consider the application in any meaningful manner resulting in a high rate of closure of applications. Revival of such applications after three months invites additional 25% of application fees. This sends a wrong message to our potential customers.

* to send applications, that fall beyond their sanctioning powers, to the Head Office, that are incomplete in terms of mandatory basic documents resulting in a certain loss of interest on the part of the branch and prolonged, avoidable correspondence for getting the necessary documentation completed.

3. With a view to making RFC, and its functioning, more customer oriented, it is necessary that our approach brings in elements of prompt service which, in the context of processing loan application, would mean committing to a certain time framework for processing, sanction and disbursement.

4. The following guidelines shall be followed, henceforth:

P&G-CIRCULAR-1388-15-07-2011-GUIDELINES-FOR-RECEIPT-&-REGISTRATION-OF-LOAN-APPLICATIONS

Page 1 of 4

[a] The loan application form has now been revised and simplified. This is common for all schemes except ‘Scheme for Good Borrowers’. The cost of application form will now be Rs.200/-.

[b] It shall be the duty of the Branch officials to first ascertain that a loan application does not fall in the following categories: i) Where applicant concern is not an industrial

concern under Section 2(C) of SFCs Act.

ii) Where application attracts restrictive provisions of SFCs Act (like Section 2(C), 26 & 28).

iii) Where application is against the existing frame work and policy guidelines of RFC (Schedule 1/6 A and 1/7B).

[c] If any loan enquiry / application falls in any of the above three categories, Branch officials shall advise the applicant accordingly; no such application should be accepted.

[d] The check-list of documents, divided into Part – A (mandatory list of documents) and Part – B (other documents), is part of the application form. This shall, thus, be available to the customer- applicant along with the application form.

He / she would still have be enlightened on the necessity of filling in all the columns of the application form and of submission of documents mentioned in Part-A of the check-list, that are mandatory for the application to be taken up for consideration at the initial stage.

The Branch Manager will ensure that entrepreneur-customers are provided all relevant information and documents needed to fill the application form. He shall also provide proper guidance / assistance in filling the loan application form and gathering the necessary documents.

[e] For applications where the loan amount falls within the powers of the branch office: * Branch officials will exercise their own counsel on

when to accept a loan application form. However, a

P&G-CIRCULAR-1388-15-07-2011-GUIDELINES-FOR-RECEIPT-&-REGISTRATION-OF-LOAN-APPLICATIONS Page 2 of 4

loan application shall be formally registered, and application fees obtained, only when the application is accompanied with all the documents in Part - A of the check-list.

* Customers should be clearly advised that once all the mandatory documents are submitted by him / her, the Branch would convey in principle approval of the loan application within two calendar weeks from the date of collection of application fees.

* During the two weeks after the loan application is registered and fees is obtained, the Branch shall complete the required enquiries like obtaining credit reports, search report, CIBIL reports, site-inspection, ascertaining the MRV of prime / collateral security, and, for cases to be forwarded to the Head Office for sanction, preparing data – sheets as required under Part – C of the application form.

* The Branch Manager shall ensure that, after completing necessary enquiries, and formalities (like holding the meeting of the IPC and DLAC), the status of the application, in terms of in principle sanction or otherwise, is conveyed to the customer.

* The formal sanction letter should be issued within the next one week. The sanction is, however, to be issued after obtaining the required processing charges from the applicant.

* The Branch Manager shall ensure disbursement of token money / first installment of the loan within ten days from the date the formal sanction letter is issued.

[f] In respect of applications where the loan amount is beyond

the sanctioning power of the branch: * The Branch Manager shall ensure that the

completed application form along with documents mentioned in Part-A of the check-list of documents as well as reports regarding enquiries like credit reports, search report, CIBIL report, site-inspection, ascertaining the MRV of prime /

P&G-CIRCULAR-1388-15-07-2011-GUIDELINES-FOR-RECEIPT-&-REGISTRATION-OF-LOAN-APPLICATIONS

Page 3 of 4

collateral security, and data – sheets, as required under Part – C of the application form, is forwarded to the Head Office within two weeks of registering the application form and collecting the application fees.

* Documents mentioned in Part-B of the check-list are also necessary for processing / appraisal of loan applications. These should also be obtained from the applicant-customer and forwarded to the Head Office within the next ten days of forwarding the main application form to the Head Office.

5. The format of credit report has also been revised. Now there will be

two separate credit reports that will require to be obtained – one in respect of individual proprietor / partner / director, and the other, in respect of the applicant-company / concern. A covering letter for banks / financial institutions seeking the required credit report has also been revised. Copies of revised format for obtaining credit reports, and the covering letter, are enclosed.

6. The system of obtaining credit reports from two good borrowers or gazetted officers stands discontinued with immediate effect.

7. The format of data-sheet has also been revised. Loan application shall, henceforth, be forwarded to the Head Office with data-sheets in the revised formats.

8. The format for site inspection report has been devised. A copy of the same is enclosed.

9. All concerned are advised to take note of, and ensure strict compliance, to the above directions / guidelines.

Sd/-

(Pradeep Sen) Chairman & Managing Director

Copy to: 1. All BO(s)/SO(s). 2. Standard Circulation at HO. 3. DGM (A&I), Eastern & Western Zone.

P&G-CIRCULAR-1388-15-07-2011-GUIDELINES-FOR-RECEIPT-&-REGISTRATION-OF-LOAN-APPLICATIONS Page 4 of 4

Price Rs. 200/-

S.No. .............

Rajasthan Financial Corporation BRANCH OFFICE __________________________

LOAN APPLICATION FORM

For Office use only

Amount of application fee Rs. .........…… Received by cash/ demand draft/

Amount of Service Tax Rs. ………......... cheque no._________ dated_________

Amount of education cess Rs. ……….... drawn on _______________________

and realized on _________

Total Amount ............................................ vide receipt no ________dated _____

Signature of BM/DM(I/c) Signature of Cashier

Loan Applied for Rs. ................................……..

Name of Loan Scheme : .................................................................... (I) Information regarding Applicant 1. Name of the concern / firm / company : .................................................................... 2. Address, telephone / fax no. and e-mail address.

(a) Registered office : .................................................................... .................................................................... Tel. no. ....................................................... Fax no. ....................................................... e-mail address………………………

(b) Administrative office/ : .................................................................... Address for correspondence .................................................................... Tel. no. ....................................................... Fax no. ....................................................... e-mail address………………………… (c) Factory / works (existing / proposed) : ....................................................................

P&G-CIRCULAR-1388(1)APPLICATION-FORM Page 1 of 7

.................................................................... Tel. no. ....................................................... Fax no. ....................................................... e-mail address…………………………

3. Constitution : .................................................................... (proprietorship / partnership / private limited company / public limited company / others)

4. Date of incorporation / formation : ....................................................................

5. Registration no. with the Registrar : .................................................................... of Companies / Firms

6. PAN of applicant company : …………………………………………

7. Registration no. (with date) with the Industries Department (SSI registration) (photocopy to be enclosed) : ………………………………………..

8. Name and address of Banker

(If more than one account is being operated, please furnish details as below in respect of each such account)

a) Where current account is being maintained

(1) (2) (3)

i) Name of bank

ii) Address

iii) Account number

iv) Date of opening the account

b) Wherefrom working capital assistance is being availed


i) Name of bank

ii) Address

iii) Type of facility

iv) Account number

v) Year when sanctioned

vi) Working capital limit sanctioned

Note: Please enclose a copy of the statement of account for last six months

9. Particulars of authorized representative, if any

(Please attach a copy of resolution/ authority letter duly signed by the directors with common seal / signed by all the partners)

a. Name : ...............................................................

b. Address : …………………………………………

………………………………………

……………………………………..

c. Telephone no./mobile no. : ……………………………………..

II. Details of product

Product (s) being manufactured / proposed to be manufactured

i) Existing : ………………………………………

ii) Proposed : ………………………………………

III. Information regarding promoters:


A. Names of all promoters: 1) 2) 3) 4) 5)

B. Details of promoters:

(a) Please furnish detailed bio-data as sought in annexure A; separately for each

promoter as A-1, A-2, A-3 ………………….

(b) Please attach a separate sheet, if required

C. Details of net worth of promoters: (please furnish details as sought in annexure B; separately for each promoter as B-1, B-2, B-3 …………………)

D. Details of past financial assistance availed, including sister / associate concerns, if any, availed from RFC / banks / financial institutions.

(Please furnish complete details as sought in annexure C & annexure AA)

E. Details of any benefit / relief by way of settlement / compromise (like waiver of penal interest / interest / re-scheduling / write off etc.) availed by any of the promoters or by any of their sister / associate concern in last three years from RFC or any other financial institution.

S. No.

Name of the unit / interested promoter

Name of financial institution

Nature of benefit

Amount of benefit

Year when benefit taken.


IV. Details (address, area of land / construction, plant / machinery etc.) of security being offered to secure the loan

(a) Prime security : ……………………………………….

…………………………………………

…………………………………………

(b) Collateral : ……………………………………….

…………………………………………

…………………………………………

…………………………………………

…………………………………………

V. Declaration

I/We certify:

• that all information furnished by me/us is true and no material information has been concealed,

• that I / we have no borrowing arrangements for the unit with any bank, except as indicated in the application,

• that no legal action has been/is being taken against me/us,

• that I / we shall furnish all other information that may be required by RFC in connection with my / our application,

• that this and any other information available with RFC pertaining to the borrowing unit present and future, may also be exchanged by RFC with any agency, RFC may deem fit, and

• that RFC, their representatives, any other agency as authorized by RFC, may at any time inspect / verify our assets, books of account etc. in our factory and business premises.


I / we further certify that, as on date, there are no over-dues payable to financial institutions / banks by the undersigned, other promoters and the company / companies in which I / other promoters have interest as promoter / director / proprietor. I / we further certify that there are no statutory over-dues pending against me / other promoters / company or other companies in which I am / other promoters are director / directors.

I / we further certify that there has / have been no criminal / economic offences conviction against me / other promoters / company / concern. I also certify that I / we are not facing any criminal / economic offence charges at present.

Signature of promoter(s)

Name of promoter

Designation

Name of concern / company

Place and date

Note

1. The Corporation reserves the right to close / reject the application without assigning any reason thereof.

2. A project report with complete details about the land, building, plant & machinery, miscellaneous fixed assets, preliminary & preoperative expenses, working capital requirement, cost of production, projection of profitability statement, cash flow statement and projected balance sheet is to be prepared & enclosed with the application form.

For office Use only


[a] Date of registration of application ……………………………………………..………….

[b] The undersigned has checked all the documents, including mandatory documents submitted, and those submitted as enclosures.

[c] The following deficiencies in application form / documentation have been conveyed to the applicant(s):

1. 2. 3. 4. 5. 6. 7. 8. Date: Signature and designation of Officer

If decision on the application is to be taken at the branch level

Date of meeting of the Internal Processing Committee (IPC) ……………………..…………..

Date: Signature of Branch Manager

If decision on the application is to be taken at the Head Office

Date of forwarding to the Head Office …………………..……………………..…………..

Date: Signature of Branch Manager

Particulars of the deficiencies in application form / documentation and date of IPC noted.

Date: Signature of applicant(s) / authorized representative


ANNEXURE – A

DETAILS ABOUT PROPRIETOR / PARTNERS / DIRECTORS (Reference column III(B) of the application form)

1 Full name

(as on PAN Card) :

2. Father’s/ husband’s name :

3.

Date of birth :

Passport size self

attested photograph

4. Complete residential address (please enclose proof of residence – latest electricity bill / telephone bill )

a) Permanent address :

b) Present address :

c) Contact details : a. Office telephone no.:

b. Residence telephone no.:

c. Mobile number:

d. e-mail address:

d. UID no. :

e. Passport no. : 5. Educational qualifications

:

P&G-CIRCULAR-1388(2)ANNEXURE-A Page 1 of 3

6. a) Past experience –occupation / business / service. (please furnish details about name and address of concern / employer, period, exact nature of work)

:

b) Present occupation / business / service and details of responsibilities assigned.

:

7. Names and addresses of bankers with which the applicant holds personal bank accounts: Name of bank and address

Account number Nature of account (SB / Home loan / Car loan / Personal loan)

Year of opening of

account

8. Details of legal heirs: S.

No. Name of legal heir

Age Relationship Occupation

Present address

1

2

3

4.

5.


9. Please furnish details of concerns in which applicant has financial stake as proprietor / partner / director as in annexure-AA.

10 Details of Income Tax for last three assessment years : ( please attach self-attested photo copy of the PAN card and IT returns) :

a) Permanent Account Number (PAN) of the Income Tax Department b) Details of income tax:

Assessment year Total Income Income tax paid

11. Net worth (as worked out in Annexure B):

12. Any other details:

Date: Signature Place: Name of promoter


Annexure – AA.

Details of concerns in which applicant has financial stake as proprietor / partner / director

(Reference column 9 of Annexure-A)

A: Details of concerns in which applicant has financial stake as proprietor / partner / director

(a) (b) (c)

Name and address of concern

Year of establishment of the concern

Nature of business

Extent of stake held as proprietor / partner/ director

B: Details of financial assistance obtained from the financial institutions / banks by the concerns mentioned above:

(Rs. in lacs)

(1) (2) (3)

Name of concern / company in whose name assistance has been obtained

P&G-CIRCULAR-1388(3)ANNEXURE-AA Page 1 of 2

Name of financial institution / banks with address.

Account number

Loan amount sanctioned (with date of sanction)

Nature of assistance

Amount outstanding

Over-dues, if any

Note: Please attach report from CIBIL of promoter and concerns mentioned in column A above.

Date: Name and signature of promoter

P&G-CIRCULAR-1388(3)ANNEXURE-AA Page 2 of 2

Annexure-B

DETAILS OF NET WORTH OF PROMOTORS

(please furnish details separately for each promoter as B-1, B-2, B-3 …) (reference column III (C) of application form)

Name of applicant company: _____________________________________________

STATEMENT OF NET WORTH IN RESPECT SHRI _____________________________________ as on (date) ___________________________________________________________

1. Immovable Assets

(Rs. In lacs)

S.

No.

Particulars / address of property (land or land & building)

Total area of plot / building

Nature of property (residential / commercial / industrial / agriculture)

Approximate value of property calculated on the basis of current DLC rate

Total value of immovable assets

Note: A legible attested photo copy of the title documents of the said properties may please be attached.

2. Movable Assets:

P&G-CIRCULAR-1388(4)-ANNEXURE-B Page 1 of 5

i)Investment in shares/debentures of companies (please attach a separate sheet, if required)

(Rs. In lacs)

Name of company Number of shares / debentures

Present total value

Total

ii) Investment in all partnership firms

(Rs. In lacs)

Name of concern Percentage of share Amount as per last balance sheet

Total

iii) Investment in proprietorship concern


(Rs. In lacs)

Name of concern Amount as per last balance sheet

Total

iv) Loans & advances (please attach sheet separately, if required) provided to other industries / companies:

(Rs. In lacs)

Name & address of the party

Amount of advance

Date of advance Outstanding amount as on date

Total

v) Deposits in Banks / Post offices (amount as on (date)____________)


(Rs. In lacs)

Name and address of Bank

Amount

Saving bank accounts

Face value of FDRs / bonds.

PPF / post office deposits.

Others

Total

vi) Cash in hand as on (date) (Rs. In lacs) ________________

vii) Others

1.

2.

3.

Total value of movable assets: _______________

3. Total value of assets (1 + 2) (Rs. in lacs) Rs. _____________________


4. Liabilities:

Details of loan from:

(Rs. In lacs)

S. No. Particulars Amount

1. Financial institutions / banks

2. Statutory liabilities

3. Creditors

4. Friends and relatives

5. Others.

Total value of liabilities (Rs. in lacs): Rs. ______________________

5. Net worth (3-4) (Rs. in lacs) Rs. ______________________

Date:____________ Signature

Place :___________

(Name of proprietor / partner / director)


P&G-CIRCULAR-1388(5)-ANNEXURE-C Page 1 of 1

Annexure-C

AFFIDAVIT

(To be executed on proper non-judicial stamp paper of Rs. 10/- purchased in the name of each executant and duly attested by a notary public)

I, . ……………….………… s/o / w/o / d/o Shri …………........................., aged …….. years, at present residing at ………………………………….. as proprietor / partner / director ( choose one that is applicable ) of M/s. ……………………… (name of applicant company / concern) do hereby state on oath as under:-

1. that I have applied to the Rajasthan Financial Corporation for a sanction of loan

for Rs. …………….. (Rupees ............………………………… only) under the ………………..……………………. (name of scheme) of the Corporation and for a subsidy of Rs. ……… (Rupees ……………… only) under the ………………..( name of the scheme) for the establishment / development of my industry against fixed assets situated at ……………………… (address of applicant company / concern ) as primary security, and fixed assets situated at ……………………… (address) as collateral security, against loan to my company / concern.

2. that my details as proprietor / partner / director of the applicant concern /

company as given in Annexure-A of the loan application submitted to the Rajasthan Financial Corporation are correct to the best of my knowledge.

3. that neither I nor any partner / director of our concern / company have sought

any sort of financial assistance from any other financial institution / bank, except as stated in the statement shown in the details of financial assistance obtained from the financial institutions / banks in Annexure-AA of the loan application submitted to the Rajasthan Financial Corporation.

4. that I am the rightful and legal owner of the immovable and movable properties /

assets, details of which are given in the statement of net worth in Annexure-B of the loan application submitted to the Rajasthan Financial Corporation. These are free from all encumbrances and charges and I do not have / possess any other immovable and movable property in my name.

DEPONENT Place: ………. Dated: ……….

VERIFICATION I ……………………………….…. do hereby verify on oath that the contents of para 1 to 4 of the above affidavit are true and correct to the best of my knowledge and belief. Nothing has been concealed or falsely stated. So help me God.

DEPONENT


No.RFC/LA- Dated: ………………….. From Branch Manager, _________________________ _________________________ _________________________ To The Branch Manager, _________________________ _________________________ _________________________ Sub: Credit Report in respect of applicant company / concern, and its sister

company / concern for appraisal of loan application Dear Sir, M/s. ………………………………………….(name of applicant company / concern) have

approached the Corporation for grant of loan for Rs……………lakhs under

……………………………………………(name of scheme) of the Rajasthan Financial

Corporation.

M/s …………………………………………………………………………. (name of the sister company / concern) is a sister company / concern of the applicant company / concern. The applicant company / concern / sister company / sister concern is maintaining account(s) with your branch. We shall be grateful for a credit report on applicant company / concern / sister company / sister concern in the enclosed format. We assure you that the information submitted by you will be treated as strictly confidential.

Yours faithfully,

Manager / Deputy Manager (Branch ) Encl: As above

P&G-CIRCULAR-1388(6)-CREDIT-REPORT Page 1 of 6

Format for obtaining credit report from Banks / Financial Institutions Credit report in respect of applicant company/ concern, and its sister concerns / companies,

for loan from the Rajasthan Financial Corporation

Name of applicant concern / company: M/s______________________________________ Name of sister concern / company : M/s_____________________________________ for which credit report is being sought Address of concern/company (as per records of the bank / financial institution) : Name and address of the bank / financial institution : ___________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ 1. Nature of business / activity :

2. Banking with this bank since (year

/ date)

:

3.

Type of account and account

numbers

: 1.

2.

3.

4. Details of facilities / term loan sanctioned by bank / financial institution

:

a) Date of sanction :

b) Amount / limit sanctioned :


c) Latest loan account position :

i) Over-dues

ii) Outstanding

:

d) Assets classification as per prudential norms for last three financial years.

: Year Health Code

e) Whether dealings with bank are satisfactory?

:

5. Any other relevant information

:

6. Account statement : Please enclose a copy of account statement for each loan account for last six months.

The above information is correct and true as per record of this bank/ financial institution. Date: Signature of authorized officer of

Bank / Financial Institution with seal



No.RFC/LA- Dated: ………………….. From Branch Manager, _________________________ _________________________ _________________________ To The Branch Manager, _________________________ _________________________ _________________________ Sub: Credit Report in respect of promoter / partner / director of company /

concern for appraisal of loan application Dear Sir, M/s. ………………………………………….(name of applicant company / concern) have approached the Corporation for grant of loan for Rs……………lakhs under ……………………………………………(name of scheme) of the Rajasthan Financial Corporation. The following promoter(s) / partners / directors are maintaining account(s) with your branch: (1) (2) (3) (4) We shall be grateful for a credit report on each of the promoter / partners / director in the enclosed format. We assure you that the information submitted by you will be treated as strictly confidential.

Yours faithfully,

Manager / Deputy Manager (Branch ) Encl: As above


Format for obtaining credit report from Banks / Financial Institutions Credit report in respect of proprietor / partner / director of applicant concern / company for loan from the Rajasthan Financial Corporation Name of applicant concern / company: M/s._________________________________________ Name of proprietor / partner / director: ____________________________________________ I respect of whom credit report is being sought Address of proprietor / partner / director of concern/company (as per records of the bank / financial institution) : _____________________________________________ Name and address of the bank / financial institution : _____________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ 1. Since when has he / she has

been banking with you (year / date)

:

2.

Type of account and account numbers

: 1. 2. 3.

3. Details of facilities / term loan if any, sanctioned by bank / financial institution (home loan / car loan/ personal loan etc.)

: 1. 2. 3.

a) Date of sanction of each such loan

: 1. 2.


3.

b) Amount sanctioned in each case

: 1. 2. 3.

c) Latest loan account position : iii) Over-dues

iv) Outstanding

: 1 2 3

d) Assets classification as per prudential norms at the end of last three financial years.

: Year Health Code

e) Have repayment of installments made in time?

4. Any other relevant information :

5. Account statement Please enclose a copy of account statement for each loan account for last six months.

The above information is correct and true as per record of the bank. Date: Signature of authorized officer of

Bank / Financial Institution with seal


Rajasthan Financial Corporation Branch Office: __________________________________

Data sheet

Data sheet in respect of loan application of M/s. __________________________________ seeking financial assistance of : Rs._____________________________

Date of registration at Branch Office

Date of site inspection

Date of loan application forwarded to HO.

1. Details financial assistance availed from RFC earlier: [a] By the applicant company / concern

(Rs. in lacs) Particulars

Loan account-I Loan account-II Loan account-III

Date of sanction

Amount sanctioned

Amount disbursed

Amount outstanding as on ___________

Amount over-dues as on ___________

Last date of repayment

Rate of interest (%)

Assets classification in three preceding

P&G-CIRCULAR-1388(7)-DATA-SHEET Page 1 of 5

years Reschedulement made, if any.

Benefit of waiver of penal interest / interest under any settlement scheme or otherwise

[b] By any sister companies/ concerns

(Rs. in lacs) Particulars [1] [2] [3]

Date of sanction

Amount sanctioned

Amount disbursed

Amount outstanding as on ___________

Amount over-dues as on ___________

Last date of repayment

Rate of interest (%)

Assets classification in three preceding years

Reschedulement made, if any.

Benefit of waiver of penal interest / interest under any settlement scheme or otherwise

2. Credit investigation


a) Details of banks / financial institutions from where the unit / promoters / sister concerns have taken financial assistance:

Applicant company / concern

(Rs. in lacs) S. No.

Name and address of the Bank / Financial Institution

Assistance availed

1.

2.

3.

Individual promoter / director



Assistance availed

1.

2.

3.

Sister company / concern



Assistance availed

1.

2.

3.

b) Comments of branch office on credit worthiness of each promoter S. No.

Name of the promoter Comments


c) Information in respect of any change in the promoters / partners / directors of the

company, and approvals thereof, on the past _______________________________________________________________________

________________________________________________________________________

______________________________________________________________________

3. Comments of branch on suitability of site for proposed project

(Please enclose a detailed site inspection report in the prescribed format)

4. Name and address of the banker from where working capital is sought by the concern.

5. Scope and marketing

(Please use a separate sheet for details, where necessary) (a) Performance of similar units assisted by RFC along with account status (b) Comments on scope of the product being manufactured / proposed to be manufacture. (c ) Name of major manufacturers / market leaders of the product (d) Details of marketing network of the concern (e) Whether any tie-up made for sales. (f) Marketing experience of the promoters:


(g) What is the end use of the product. (h) Name of major consumers: (i) Popular brand names in the proposed line. 6. Recommendation of Branch Manager ______________________________________ __________________________________________________________________________ __________________________________________________________________________

Signature of the Branch Manager with date


Rajasthan Financial Corporation

Site Inspection Report

Name of the Branch Office

Date of visit

Name of officers of the visiting team

1. 2.

A. Common for new as well as existing units: 1. Name of the unit : 2. Complete address of unit : ____________________________________________ ____________________________________________ ____________________________________________ ____________________________________________ 3. Details of site (a) Location : (b) Area of land : (c ) Nature of land (converted / industrial / commercial / residential) : (d) Status of approach from main road 1. whether approach is clear &

undisputed

2. if clear approach is available, nature of rasta (kacha / metal road / concrete road etc)

3. Width of the approach road

P&G-CIRCULAR-1388(8)-SITE-INSPECTION-REPORT Page 1 of 3

4. Availability of infrastructure facilities i) Source of power Industrial feeder / rural feeder / : _________________________ If rural feeder, distance of nearest pole from site : _________________________ Use of diesel generator : ____________________(KVA) ii) Water Whether industry is water consuming unit : __________________________ If yes,

a) Source of water availability. : __________________________

b) Quality of water, if applicable. : __________________________ vi) Distance of the site from main locations like railway station, bus stand, hospital etc. : __________________________ __________________________ vi) Comments on existence of other / similar industries in the vicinity of the site : __________________________

__________________________ 5. Progress of the project and investment made so far

(Rs. in lacs) Assets Progress made so far Investment made so far Land

Building

Plant & machinery (acquired / not acquired)

Erection / installation

Status of power


connection Production

B. Additional information (for existing unit) 1. Details of existing project

a) Name of product : ______________________________________ b) Installed capacity : ______________________________________ c) Capacity utilization : ______________________________________ 2. Details of existing assets ( please attach a separate sheet if required.)

a) Land area as per title documents and actual ___________________________ b) Building ___________________________

c) Plant & machinery and misc. fixed assets ____________________________

Any other important information ____________________________

C. Whether the site is suitable for the proposed project: Yes / No D Recommendations i) Overall recommendations / comments

1. Name & signature of team member 2. Name & signature of team member

ii) Comments and recommendation of Branch Manager.

Signature of Branch Manager


CHECK - LIST OF ENCLOSURES (To be furnished with the loan application form)

P A R T - A

List of documents that should accompany the loan application form submission of which is mandatory for the application to be taken up for consideration :

S.No. Particulars 1 Bio-data of each promoter as in Annexure-A (A-1, A-2, A-3………..) and

Annexure AA (AA-1, AA-2, AA-3…………..), including proof of residential address, Income Tax PAN)

2 Statement of Net worth of each promoter as in Annexure – B (B-1, B-2, B-3………..) including copies of title documents of immovable properties).

3 Affidavit, as in Annexure – C (C-1, C-2, C-3………..), regarding financial assistance availed and details of immovable properties owned by each promoter as in Annexure AA..

4. Copy of balance sheet / audited balance sheet and Profit & Loss account for last 3 years of applicant company / concern and sister companies / concerns.

5 Copies of Income tax returns filed, with computation-sheet, for last three assessment years for each promoter, separately.

6 Documents regarding land: i) For lease hold Land Copies of allotment letter / Lease deed,

with site plan and documents showing chain of transfer of ownership / lease. Also, copies of receipts of lease money.

ii) For converted Land Copies of sale deed / mutation entry in revenue record, trace map conversion order / lease deed with duly approved site plan showing “aam rasta”. Copy of receipt of conversion charges.

iii) For Freehold Land Patta / Sale deed with chain of transfer of title documents & site plan. NOC from local authorities regarding permission to set up the proposed project. Copy of resolution passed by Gram Panchayat.

7 Building plan for the proposed building.

8 Project report alongwith the details of scope of products, and demand and

P&G-CIRCULAR-1388(9)-CHECK-LIST Page 1 of 3

supply position.

9 If the applicant is a partnership firm : Partnership deed / Supplementary Partnership deed alongwith firm registration certificate and entry U/s 67 of the Indian Partnership Act, consent of all partners authorizing one partner to sign the application for, submit the documents with the application form, and to represent the firm before the RFC.

10

If the applicant is company : i) Certificate of incorporation and Memorandum & Article of Association. ii) Prospectus & certificate of commencement of business ( in case of

Public Limited Company) iii) Form No. 32 for incoming and outgoing directors. iv) Share holding pattern. v) Copy of resolution duly approved by board of directors of the company

for one of them to sign the application for, submit the documents with the application form, and to represent the firm before the RFC.

11 Entrepreneur Memorandum Number for MSME.

12 i)Quotations for purchase of plant and machinery from reputed suppliers.

ii) List of other clients where the supplier has affected sale of same / similar plant and machineries.

Part-B:

List of other documents that the applicant is required to furnish to enable detailed appraisal of the loan application.

S. No.

Particulars

1) Technical details : i) Details of capacity / technical specifications of machines proposed to be

acquired. ii) Sales tax numbers, catalogue, price list etc. of the supplier. iii) Performance certificate from existing users of similar plant &

machinery supplied by proposed supplier. iv) Reasons for selection of proposed supplier (undertaking to be taken

in prescribed proforma) v) Document that support the prices of raw material and sale price of

finished goods stated in the project report. vi) Details of technical expertise which will be available to the unit for


manufacturing the proposed product.

2) Search report from Registrar of Companies in respect of for existing directors of the company and charge on the company, if any.

3) If amount of loan being sought is more than Rs. 50.00 lacs, report from CIBIL in respect of each promoters, their companies / concerns / sister concerns.

4) Others :

i) Approved building map, if required.

ii) Implementation schedule of the project.

iii) Proof regarding SC/ ST/ Ex-serviceman/ physically handicapped, if applicable.

iv) NOC from the local authority to set up the proposed project. ( as per rules of local authority concerned)

v) Consent to establish or consent to operate, as the case may be, from

RPCB.

vi) Environment clearance, if applicable.

vii) Power assurance letter from power company in case unit is to be set up in other than RIICO Industrial Area.

viii) Any other statutory clearance / NOC necessary for the project to be

commissioned.


P&G-CIRCULAR-1389-28-07-2011-WORKING-CAPITAL-ASSURANCE-LETTER-FROM-BANKS Page 1 of 3

RFC/P&G/1389

RAJASTHAN FINANCIAL CORPORATION Udyog Bhavan, Tilak Marg, Jaipur (CREDIT APPRAISAL SECTION)


: P&G CIRCULAR : (LA No. 576)

Reg : Working capital assurance letter from banks

Attention is invited to provisions contained in P&G (Page No. 7-8 Chapter LA-2 & 22-23 Chapter LA-3) for carrying out simultaneous appraisal with banks for granting working capital limits. Under the said provisions, for ensuring availability of the working capital limits to the entrepreneurs intending to avail financial assistance from the Corporation, an assurance letter from the bank for providing the same, is being asked for as per P&G Circular No. 1340 dated 28.07.2010. It has been observed that entrepreneurs find it hard to arrange such assurance letters from their banks/ There have be4en instances where banks which are approached by entrepreneurs for such assurance letters are lured away by them. In either situation, RFC ends up losing business. With a view to addressing the issue, it has been decided not to ask the applicant entrepreneurs for such assurance letter from banks in respect of working capital limits. Instead, branches will, henceforth, obtain an undertaking only in the enclosed format from applicant-entrepreneurs to the effect that they will arrange for the required working capital from the banks / on their own. It may be noted that the guidelines issued recently (P&G circular No. 1388 dated : 15.07.2011) also, the practice of asking for such assurance letters have been discontinued; this item does not figure in the ‘Check List of Enclosures’ with the Loan Application Form.


The above guidelines shall be applicable in supersession of all earlier guidelines, including those contained in P&G (Page No. 7-8 Chapter LA-2. & 22-23 Chapter LA-3), issued in this regard. All concerned are advised to take note of the above and ensure compliance.

Sd/- (Pradeep Sen)

Chairman & Managing Director Copy to: 1. Standard Circulation at HO 2. All Branches / Sub-Offices. 3. DGM(A&I), Eastern & Western Zone


Application for loan from the Rajasthan Financial Corporation

UNDERTAKING

(in respect of arranging working capital)

I ………………………………………………. s/o / w/o / d/o Shri ………………….………………………….., aged …………….. years, residing at ……………………......................................, as sole proprietor / partner / director of M/s. …………………………………………………… (name of applicant concern company) do hereby undertake as under : (1) that I have applied to the Rajasthan Financial Corporation for

sanction of loan of Rs. …………………(Rupees

……………………………………………. Only) under the

……………………………………. (name of scheme) of the

Corporation and for a subsidy of Rs. ……………………. (Rupees

……………………………………………………………… only)

under the …………………………………………………….. (name

of scheme) for the establishment / development of my industry

against fixed assets situated at

……………………………………………………. (address of

applicant company / concern).

(2) that I / we will arrange the required working capital limit / facility

for may / our said concern / company} from the banks and or from

our own sources.

For M/s. _____________________________________ Sole proprietor / Partner / Director

Place ……….. Dated ……..


UDYOG BHAWAN TILAK MARG

JAIPUR Ref.No.RFC/LA-16 (19)/441 Dated: 17.08.2011

: CIRCULAR :

Reg: Exposure limits of CRE sector in Sanction targets for the

financial year 2011-12. Attention is invited towards circular No. RFC/LA-16(19)/2000 dated 31.03.2011 vide which the branch-wise sanction target were circulated with the directions that the sanction under CRE sector should not exceed 30% of actual sanction on monthly basis. The restrictions were imposed as per policy approved by the Board of Directors in this regard. The Board of Directors has now reviewed the position of CRE sector in its meeting held on 07.07.2011 and have now linked sanctions under CRE sector with the likely recovery in CRE sector and restricted it to 75% of expected recovery of principal from CRE sector during financial year 2011-12 for the current financial year in place of restricting it to 30% of total sanctions. Consequent upon revision in the norms by Board of Directors, the ceiling of 30% sanction under CRE sector is withdrawn with immediate effect. The following branches are now allowed to sanction the loan under CRE sector, upto the maximum amount mentioned, in current financial year, at the branch level.

( Rs. in lac) S.No. Name of Branch Sanction limits in CRE. 1 Jaipur(City) 500.00 2 Jaipur(Rural) 300.00 3 Kota 500.00 4 Beawar 100.00 5 Makrana 100.00 6 Alwar 300.00 7 Jhunjhunu 50.00 8 Tonk 50.00 9 Jaisalmer 100.00 10 Jodhpur 500.00 11 Banswara 100.00 12 Bhiwadi 300.00 13 Udaipur 500.00 14 Jaipur(VKIA) 200.00 15 Chittorgarh 100.00

GC-LA-16-19-441-17-08-2011- EXPOSURE-LIMITS-OF-CRE-SECTOR-TARGETS-2011-12

Page 1 of 2

16 Bikaner 100.00 17 Bhilwara 100.00 18 Sikar 50.00 The remaining branches may also propose for prior approval for any good CRE project from H.O. The branches are urged to give feed back about CRE cases sanctioned, pending for sanction and likely sanctions on monthly basis so that HO (Credit Appraisal Section) could further refine the CRE project targets. All concerned are advised to ensure compliance.

Sd/- (Yaduvendra Mathur)

CHAIRMAN & MANAGING DIRECTOR Copy to: 1. All BOs/SOs. 2. Standard circulation at H.O. 3. DGM (A&I), Eastern & Western Zones.

GC-LA-16-19-441-17-08-2011- EXPOSURE-LIMITS-OF-CRE-SECTOR-TARGETS-2011-12

Page 2 of 2

RFC/P&G/ 1391



JAIPUR-302 005.



Reg : Inclusion of Industrial Areas under the

eligibility criteria of Saral Scheme for SME Sector.

Attention is invited to P&G Circular No. 1211 dated 01.12.2007 regarding Saral Scheme for SME Sector (Existing industrial running units) and amendments made from time to time. In view of feed back and requests received from the field offices, matter with regard to inclusion of industrial areas was discussed in the PC&CC meeting held on 30.06.2011 and it has been decided to include all the remaining RIICO industrial Areas which are presently not covered for financing under Saral Scheme for SME Sector subject to the following conditions : a) The unit should be running and is in production for

preceding two years. b) The unit should have cash generation in immediate

preceding year. c) The MRV of land shall be calculated on the basis of

average of RIICO rate and auction price, if available, otherwise RIICO rate shall be taken into consideration.

d) The MRV of existing building shall be calculated as

per the prevailing norms. e) All other parameters/norms of Saral Scheme for SME

Sector shall be followed strictly.

P&G-CIRCULAR-1391-18-08-2011-INCLUSION-OF-IAs-UNDER-SARAL-SCHEME-

FOR-SME-SECTOR Page 1 of 2

The above changes may be incorporated in PG at the appropriate place. All concerned are advised to take a note of above and ensure compliance of the same.

Sd/- ( Yaduvendra Mathur)

CHAIRMAN & MANAGING DIRECTOR Copy to : 1. All BOs / SOs. 2. Standard Circulation at HO. 3. DGM(A&I), Eastern & Western Zone

P&G-CIRCULAR-1391-18-08-2011-INCLUSION-OF-IAs-UNDER-SARAL-SCHEME-

FOR-SME-SECTOR Page 2 of 2

P&G-CIRCULAR-1392-26-08-2011-EXTENSION-IN-REPAYMENT-PERIOD-UNDER-BUILDERS-SCHEME

Page 1 of 2

RFC/P&G/1392


Head Office, Udyog Bhawan,

Tilak Marg, Jaipur-302 005 Ref. No. RFC/LA-13(11)/470 Dated : 26.08.2011

: P&G CIRCULAR : (LA No. : 578)

Reg: Extension in repayment period under Builders Scheme

for purchase of land & building. Attention is invited to P&G Circular No. 1361 dated 04.01.2011 containing guidelines on revision in the rate of interest under Builders Scheme where borrowers approach the Corporation for further loan under Project Loan Scheme for implementation of the complete project.

The matter regarding revision of rate of interest & repayment period under Builder’s Scheme was reviewed in the PC&CC meeting held on 18.08.2011 and it was decided that if the loanee approaches the Corporation for further loan under project loan scheme for completion of the project after availing loan for land under Builders Scheme, the revision in rate of interest and repayment period as applicable to the respective project loan scheme may be made subject to fulfilling the following conditions : a) If the unit approaches the Corporation for loan

under Project Loan Scheme, within a period of six month from the date of sanction of loan under Builders Scheme;

b) Amount of further loan sanctioned under project

loan scheme shall not be less than : i) 50 % of loan amount sanctioned under Builders

Scheme, in case the property has been purchased from a private party.

P&G-CIRCULAR-1392-26-08-2011-EXTENSION-IN-REPAYMENT-PERIOD-UNDER-BUILDERS-SCHEME

Page 2 of 2

ii) 33% of loan amount sanctioned under Builders Scheme, in case the property has been purchased from a Government body.

Other provisions shall remain unchanged. All concerned are advised to take a note of the above and ensure compliance with immediate effect.


Chairman & Managing Director Copy to : 1. All Branches/Sub Offices 2. Standard Circulation at HO. 3. DGM (A&I) Eastern & Western Zone 4. Manager (Tech.) : Upload on RFC Website.

P&G-CIRCULAR-1394-01-09-2011-DELEGATION-SANCTIONING-POWERS-IN-ISOLATED-AREAS

Page 1 of 2

RFC/P&G/1394



JAIPUR-302 005.


: PG CIRCULAR : (LA No. 579 )

Reg : Delegation of sanctioning powers in cases of

Industrial units to be set-up on converted land in Isolated Areas.

Guidelines with regard to delegation of sanctioning powers in cases of Industrial units to be set-up on converted land in Isolated Areas were circulated P&G Circular No. 1387 dated 07.07.2011. References have been received from Industries Associations of Rajsmand, Udaipur and other Branches for review of the guidelines. Accordingly the matter has been reconsidered and the Board of Directors has decided to delegate the powers for sanction of loans for the units being set-up in the areas falling under the category “B” as under : S. No.

Category Sanctioning authority

1

Undeveloped Areas : B (i) : Areas converted for industrial use and that which are within close enough vicinity of the developed industrial areas for the entrepreneurs to be able to take advantage of the infrastructure, like roads, transports and other facilities, available on account of the industrial area.

As per usual delegation of powers for sanction of loans contained in circular No. P&G 1374 dated 08.03.2011 Note : With this, item No. 8 of the said circular stands deleted.

P&G-CIRCULAR-1394-01-09-2011-DELEGATION-SANCTIONING-POWERS-IN-ISOLATED-AREAS

Page 2 of 2

2 B (ii) : Areas converted for industrial use where the industry is sought to be set up because of the availability of raw material in close vicinity like mining units, agriculture produce processing units etc.

Such loan applications will be forwarded to Head Office and will be sanctioned by the respective sanctioning authorities at Head Office as per delegation of powers contained in Circular No. P&G 1374 dated 08.03.2011

3 Project which do not fall in either category “A” or category “B” as defined by the committee.

Executive Committee.

Note : This will not come in the way of sanction of loans under the “Good Borrower Schemes” even when the units falls in the “undeveloped area” shall be exercised by the concerning sanctioning authorities as contained in circular No. P&G 1374 dated 08.03.11. Other provisions are remain unchanged. The above amendments may be incorporated in the PG at the appropriate place. All concerned are advised to take a note of above and ensure compliance with the same.


CHAIRMAN & MANAGING DIRECTOR Copy to : 1. All BOs / SOs. 2. Standard Circulation at HO. 3. DGM(A&I), Eastern & Western Zone 4. Manager (Tech.) for upload on RFC web site.

RFC/P&G/ 1395 RAJASTHAN FINANCIAL CORPORATION

(CREDIT APPRAISAL SECTION) Udyog Bhawan,

Tilak Marg, JAIPUR-302 005.

Ref. No.RFC/LA-13(11)/512 Dated : 09.09.2011

P&G CIRCULAR (LA No. 580)

Reg : Revision in the interest rate structure of the Corporation

Attention is invited to the interest rate structure of

the Corporation which was circulated vide PG Circular No. 1380

dated 19.05.2011 and PG Circular No. 1384 dated 21.06.2011.

Pursuant to further revision in refinance rates by SIDBI

and increase in the rate of interest by Banks, the

Corporation has also reviewed the interest rate structure for

its various loan schemes and it has been decided to revise the

interest rate structure as per Annexure “A”.

The revised rates shall be applicable to the loan cases

to be sanctioned on or after issuance of circular and the loan

cases sanctioned earlier but the execution of the loan

documents (including token disbursement) of the same is to be

done on or after issuance of circular as per the existing

policy.

Other terms and conditions and benefits laid down in PG

Circular No. 1380 dated 19.05.2011 shall remain unchanged.

All concerned are advised to take note of the above and

ensure compliance.


Chairman & Managing Director Encl. : As Above. Copy to : 1- Standard Circulation at HO, 2- All Branches /Sub-Offices, 3- DGM (A&I) Eastern & Western Zone

P&G-CIRCULAR-1395-09-09-2011-REVISION-IN-INTEREST-RATE-STRUCTURE-OF-THE-CORPORATION Page 1 of 2

Annexure ‘A’


APPLICABLE TO MSME /NON MSME SECTOR IRRESPECTIVE OF COST OF PROJECT

S. No.



11.25%


13.50%

3. MSME Service Sector projects (including Hotels projects, Technical/ Professional Educational Projects/ Guest-House projects, Tourism Projects , Hospitals/ Nursing Home Projects and Medical Equipment Scheme cases)

14.25%

4. a) Scheme for Financing Against Assets b) Scheme for Financing for Builders/commercial /residential

complexes/ Multiplexes, Hotels, Hospitals etc. for purchase of land & building


16.50%

18.50%

15.50%

5. Projects for Construction of Commercial /Residential Complexes 16.25% APPLICABLE TO GOOD BORROWER SCHEMES

S. No


1. a) Short Term Loan Scheme (STL), Working Capital Term Loan Schemes (WCTL), Special Purpose Working Capital Term Loan Scheme (SPWCTL). b) Units Promoted By Good Borrower (UPGB)

13.00%

12.75%

2. Working Capital Term Loan to Non Assisted Units

14.50%

3. Platinum Card Scheme

13.00%

4. Gold Card Scheme

13.25%

5. Flexi Loan Scheme 13.50%


Page 2 of 2

P&G-CIRCULAR-1398-27-09-2011-SCHEME-FOR-FAAS-&-SARAL-SCHEME-SME-

SECTOR, Page 1 of 1

RFC/P&G/1398 RAJASTHAN FINANCIAL CORPORATION

(CREDIT APPRAISAL SECTION) Udyog Bhawan, Tilak Marg,

JAIPUR-302 005. Ref.No. RFC/ LA-GBD/Gen./125/585 Dated : 27.09.2011


Reg : Scheme for Financing Against Assets & Saral

Scheme for SME Sector.

The Scheme for Financing Against Assets was circulated vide P&G Circular No. 1007 dated 22.05.2003. Likewise, the Saral Scheme for SME Sector (Existing Industrial Running Units) was circulated vide P&G Circular No. 1211 dated 01.12.2007. Thereafter amendments/modifications in these loan schemes were also issued from time to time The matter with regard to considering the admissibility of financial assistance under the Scheme for Financing Against Assets & Saral Scheme for SME Sector in the light of revised guidelines issued with regard to calculating MRV was discussed in the PC&CC meeting held on 12.09.2011. Accordingly, it has been decided to consider loan upto 60% of MRV (calculated as per new guidelines issued vide P&G circular No. 1397 dated 23.09.2011) under the Scheme for Financing Against Assets & Saral Scheme for SME Sector for the current financial year i.e. upto 31.03.2012. Other norms/guidelines will remain unchanged. The above amendment may be incorporated in the PG at the appropriate place. All concerned are advised to take a note of above and ensure compliance of the same.

Sd/- (Yaduvendra Mathur )

CHAIRMAN & MANAGING DIRECTOR Copy to : 1. All BOs / SOs. 2. Standard Circulation at HO. 3. DGM(A&I), Eastern & Western Zone.

P&G-CIRCULAR-1401-23-11-2011-TOP-UP-LOAN-SCHEME-FOR-EXISTING-BORROWERS-OF-MSME

Page 1 of 17

RFC/P&G/1401



JAIPUR-302 005. Ref.No. RFC/ LA-12(65)/811 Dated : 23 .11.2011


Re: Top-up Loan Scheme for existing borrowers of MSME.

A loan scheme namely “Fast Track Loan Scheme” was

introduced vide PG circular No.1239 dated 06.10.2008 for promotors intending to avail further term loan from the Corporation for meeting out requirements of funds for working capital and capital investment in the unit. However, this did not yield desired results and only few cases were sanctioned under the scheme since its introduction.

Considering the requirements of the existing borrowers and feed back taken from field offices, it has been decided to replace the existing scheme with a simplified new scheme namely Top-up Loan Scheme for quick sanction and to attract more business from the existing borrowers. Under this new scheme no detailed appraisal shall be undertaken.

The proposed scheme is enclosed as annexure-A. To maintain uniformity, formats of loan proposal and loan application (having cost Rs.100/-) have also been enclosed as annexure –B & C.

The Branch Managers are required to make wide publicity of the scheme and to identify all such eligible existing borrowers and prepare a list with complete address and contact numbers with a view to fetch maximum business under this scheme. A monthly progress report (annexure-D) shall be forwarded to CAS HO upto 5th day of next month regularly.


Page 2 of 17

All concerned are directed to implement the loan scheme successfully and to strive hard to fatch maximum business under the scheme. Any laxcity shall be viewed seriously. -sd-

(Yaduvendra Mathur ) CHAIRMAN & MANAGING DIRECTOR

Encl: As above. Copy to : 1. All BOs / SOs. 2. Standard Circulation at HO. 3. DGM(A&I), Eastern & Western Zone


Page 3 of 17

Annexure “A”


(Credit Appraisal Section)

Re: Top-up Loan Scheme for Existing borrowers of MSMEs 1. INTRODUCTION :

To facilitate the existing financed running units (except real estate case i.e. financed under commercial/ residential complex schemes, Builders scheme, FAAS casessanctioned against residential/ commercial properties for real estate projects) who are regular in repayment of the Corporation dues for a reasonable period, the Corporation has devised a scheme namely “Top-up Loan Scheme for Existing Borrowers of MSMEs” (in replacement of existing scheme circulated vide PG circular No. 1239 dated06.10.2008) to provide further loan to the extent of principal loan amount repaid (excluding pre-payment) or a higher amount (in excess of principal repaid) provided availability of required security, to meet the requirement of the unit quickly with simplified procedure and without detailed appraisal.

2. PURPOSE OF LOAN :

The loan shall be utilised for acquisition of additional fixed assets for expansion/ modernisation/ diversification/ replacement of old machines etc. and/ or meeting out the working capital requirements of the existing unit.

3. ELIGIBILITY CRITERIA :

a) It should be an existing RFC running financed unit (except real estate case i.e. financed under commercial/ residential complex schemes, Builders scheme, FAAS cases sanctioned against residential/ commercial properties for real estate projects) having minimum association with the Corporation for two completed years from the date of execution and having cash profit in immediate preceeding one year.


Page 4 of 17

b) The unit should have been regular in repayment and all due installments (Prin./interest/ other money) should have been paid in time as per norms. However, if any party fails to repay the instalment within 7 days from the due date but paid the same within the quarter in which it fall due; it will also be eligible for financing under the scheme. There should not be any overdue as on date of sanction and the unit should have repaid atleast four quarterly principal installments/ EQIs in the last loan account, if the unit is having more than one loan account.

c) The account of unit should have been standard

since begining. d) There should not be any reschedulement/ waivement

(including penal interest)/ settlement in the loan account of the unit and its sister concern during last three financial year.

e) The fixed assets already mortgaged to the

Corporation should be intact & not given on rent/lease basis and should not have been sold towards dilution of security

f) Pre-paid principal instalments shall not be

considered for the eligible anount of loan under this scheme

g) There is no violation of terms & conditions of

existing loans sanctioned to the unit. AMOUNT OF LOAN :4. The admissible loan under this scheme shall be equal to principal amount repaid in the loan account. If the unit is having more than one loan account, repayment in the last loan account should be the deciding factor. A higher loan amount (in excess of principal repaid) maximum upto 60% of MRV of security (land & building and collateral) minus existing outstanding may be admissible. However, this additional loan over & above


Page 5 of 17

principal repaid shall not exceed 25% of the principal sum repaid.

5. DEBT EQUITY RATIO :

The overall debt equity ratio should not exceed 2:1 after consideration of the proposed loan under the scheme.

6. REPAYMENT PERIOD :

Loan sanctioned under the scheme shall be repayable in five years including moratorium not exceeding six months in quarterly installments. The repayment shall be through EQI with PDC. The borrower may also opt for monthly repayment i.e. EMI at the time of documentation.

7. COMPETENT AUTHORITY FOR SANCTION OF LOAN :

The sanctioning powers under the scheme will be in addition to the powers for sanction of loan under general loan scheme as delegated to respective competent authority irrespective of existing outstanding.

8. SECURITY DEBT RATIO :

a) Security ratio would not be recalculated in case the further loan amount is not exceeding sum of principal instalment repaid.

b) In case the further loan is exceeding the amount

of principal repaid, the total security debt ratio (including proposed loan) shall not be less than 1.66:1 as per present MRV of security (land & building of the unit and collateral security). MRV shall be calculated as per the prevailing norms of the Corporation.

9. APPLICATION FEE & PROCESSING CHARGES :

Application fee will be charged as per the prevailing norms of the Corporation from time to time. Processing charges shall be charged @ 0.50% of the sanctioned term loan with Service Tax, Education Cess and other applicable Government taxes.


Page 6 of 17

10. RATE OF INTEREST : The rate of interest will be applicable as per the prevailing rate of interest of the Corporation for respective scheme under which the original loan was granted.

11. Liquidated damages shall be charged as per the

prevailing policy of the Corporation from time to time. 12.

DISBURSEMENT : The sanctioned loan would be disbursed in one or such higher number of instalments as the disbursement authority deems appropriate within three months from the date of sanction. The borrower shall furnish the CA certificate reg. utilization of loan in proforma prescribed (by finance section) within 6 months from the date of disbursement. After 3 months, the sanction shallstand cancelled automatically.

13. DOCUMENTATION :

The execution of loan documents shall be made as per existing procedure.

14. UNDERTAKING & DECLARATION :

a) The unit shall furnish an undertaking that loan shall be utilized for meeting working capital requirements and/ or for creation of fixed assets to be used for industrial/ hotel/ tourism/ hospital/ nursing home projects as defined in section 2 (c) of SFC ct 1951.

b) It will comply with all legal requirements to run

the unit i.e. obtaining NOC from local authority, RPCB & other Departments, if so required.

c) That the property is owned by the borrower unit

and presently not let out/leased and shall obtain prior approval from the Corporation for renting/leasing out in future

d) The borrower shall keep insured the fixed assets

i.e. building, P&M and MFAs considered for financial assistance, every year till the entire


Page 7 of 17

loan is repaid and copy of insurance policy be furnished with the Corporation from time to time.

e) All the securities including primary, collateral

and guarantee (s) taken in the existing loan shall remain continue for the proposed loan also.

f) The proposed loan shall not be utilised for the

repayment of existing loans.

15. RECOVERY : The cases financed under the scheme shall be monitored closely. BMs shall have full powers for taking legal action under section 30 / 29 of the SFC Act in case of default so as to effect recovery without delay together with action under 138(b) of the Negotiable Instruments Act for dishonor of the cheque as per guidelines issued time to time in this regard. FR Section shall ensure that there is not a single NPA case under the scheme.

Annexure -B RAJASTHAN FINANCIAL CORPORATION

(CREDIT APPRAISAL SECTION) Udyog Bhawan, Tilak Marg JAIPUR-302 005

Branch Office _________________

File No. _______ PROPOSAL FOR SANCTION OF A TERM LOAN OF RS._______ LAC TO M/S_______________________________________________ UNDER TOP-UP LOAN SCHEME FOR EXISTING BORROWERS OF MSMEs I) GENERAL INFORMATION :

1. NAME OF THE UNIT/CONCERN/COMPANY

2. CONSTITUTION

3. ADDRESS FOR CORRESPONDENCE

4. ADDRESS OF WORKS

5. REGISTERED OFFICE

6. AMOUNT OF LOAN APPLIED

7. PRODUCTS MANUFACTURED

8. DATE/YEAR OF PRODUCTION

9. SIZE OF UNIT(MSME) (Micro, Small, Medium)

10 REGISTRATION/MEMORANDUM NUMBER WIH INDUSTRIES DEPATT.

11 REGISTRATION NUMBER & DATE WITH REGISTRAR OF COMPANIES / REGISTRAR OF FIRMS

DATE OF REGISTRATION At BO At HO


Page 8 of 17


Page 9 of 17

12 NAME OF PROPRIETOR /

PARTNERS / DIRECTORS (PRESENT)

1 2 3 4

13 CHANGE OF DIRECTORS / PARTNERS (IF ANY), IF YES, THEN WHETHER CHANGES APPROVED BY RFC

14 DEBT EQUITY RATIO (AFTER PROPOSED LOAN)

15 SECURITY DEBT RATIO (AFTER PROPOSED LOAN)

20 APPLICABLE RATE OF INTEREST

21 REPAYMENT PERIOD INCLUSIVE MORATORIUM PERIOD

5 YEARS INCLUSIVE 6 MONTHS MORATORIUM PERIOD

II) ELIGIBILITY CRITERIA: (to mention Yes or No as applicable) a. Whether the unit is associated with the

Corporation for a minimum for 2 years and having cash profit in immediate preceeding financial year?

b. Whether the concern/company has repaid four instalments of principal (excluding pre-paid)? (If unit is having more than one loan account then in the last loan account four instalment of principal should have been repaid.)

c. Whether the repayment behaviour in unit/ sister concerns has remained satisfactory in past?

d. Is there no overdue in unit/ sister/ associate concerns?

e. Whether the account of the unit is classified as standard assets since


Page 10 of 17

beginning?

f. Whether the unit and its sister concerns have not availed benefit of waiver of penal interest/interest or grant of reschedulement/ settlement in last 3 financial years?

g. Whether the debt equity ratio is not more than 2:1 after proposed loan

h. Whether the fixed assets already mortgaged to the Corporation are intact & not given on rent/lease basis and should not have sold any part of security?

i. Is there no violation of terms & conditions of existing loans sanctioned to the unit earlier?

Note – The answer of above points ‘a’ to ‘i’ should be YES for the eligibility of loan under the scheme.

III) DETAILS OF FINANCIAL ASSISTANCE AVAILED FROM RFC : Rs in lacs

Loan Sanctioned SNo. Date Amount

Name of scheme

Loan disb.

Loan repaid

Loan O/S O/D

1 2 3 TOTAL

IV) DETAILS OF FINANCIAL ASSISTANCE AVAILED IN SISTER CONCERNS FROM

FC : Rs in lacs R Loan Sanctioned SNo. Name of

unit

Date Amount Loan disb.

Loan repaid

Loan O/S

O/D

V) FINANCIAL PERFORMANCE OF THE UNIT: (Last 3 years) :

(Rs.in lac) Year Sales and other income Net profit


Page 11 of 17

Cash profit Net worth

VI) SECURITY: (as reported by BO) : Rs in lacs Book value as

on------------Market Relisable value

Acceptable Value

Land Building Collateral Security

Total Note – Collateral security and other security, if any, shall remain continue under the charge of the Corpoation for the proposed loan also.

VII) SECURITY DEBT RATIO : Rs in lacs

A. .Total Security (Acceptable) Total debts: Existing (RFC)

Proposed(RFC)

B. Total

Security Debt Ratio ( A/B)

VIII) CALCULATION OF ELIGIBLE AMOUNT : Maximum eligible loan amount of further loan shall be calculated as under: - (Rs.in lac) A Amount of principal repaid in the last loan

account, if the unit is having more than one loan account (minimum four instalments of principal should have been repaid excluding pre-paid instalments in the last loan account)

No. of Instalments

Amount

OR B In case of further loan amount is exceeding the amount of

principal repaid. ( the required security for the total loan is to be maintained as under) :

On the basis of security debt ratio (1.66:1) i) Loan admissible - (Acceptable security /1.66) = Rs------------ Less: existing outstanding Rs------------ OR ii) 125% of principal sum repaid


Page 12 of 17

Admissible further loan (whichever is less of i & ii of above)

C Loan amount recommended

IX) RATE OF INTEREST :- a) (prevailing rate of interest of the Corporation for the

respective scheme on the day of execution of loan documents) Presently the rate of interest is_____%p.a.

b) Liquidated damages shall be charged as per prevailing policy of the Corporation from time to time.

X) REPAYMENT PERIOD :

Loan sanctioned under the scheme shall be repayable in 18 equated quarterly instalments of Rs._______ each against principal and interest through post dated cheques. The first instalment shall fall due on first day of March/ June / Sept. /Dec (as fallen due after 6 months moratorium period). In case of any payment recoverable from borrower or payable to borrower, as the case may be, shall be adjusted in the last EQI. The above EQI has been calculated at the interest @ ------- per annum. In case, the cheque is not realized on due dates, then BO shall obtain from borrower the enhanced amount of EQI including applicable rate of liquidated damages, prevailing at that time. The Branch shall recover interest for the moratorium period by calculating the interest manually and same shall be recovered through separate cheques. Post Dated Cheques (PDCs) for all the above installments shall be collected at the time of execution of loan documents.

XI) UNDERTAKING & DECLARATION : a) The unit shall furnish undertaking that loan shall be

utilized for meeting working capital requirement and/ or for creation of fixed assets to be used for industrial/ hotel/ tourism/ hospital/ nursing home projects.

b) It will comply all legal requirements to run the unit

i.e. obtaining NOC from local authority, RPCB & other Departments, if so required.

c) That the property is owned by promoters and presently not

let out/leased and shall obtain prior approval from the Corporation for renting/leasing out in future.

d) The borrower shall keep insured the fixed assets i.e.

building considered for financial assistance, every year till the entire loan is repaid and copy of insurance policy be furnished with the Corporation.


Page 13 of 17

e) All the securities including primary, collateral and

guarantee (s) taken in existing loan shall remain continue for the proposed loan also.

f) The proposed loan shall not be utilised for the repayment of any existing loan.

RECOMMENDATIONS : After examination of the eligibility criteria of the scheme, the unit is eligible for sanction of a further term loan Rs._______lac. A term loan of Rs_______lac is recommended for sanction on usual terms & conditions.

Members of Appraisal Team & signature

1. 2.

Name of Branch Manager & signature

Annexure –C

Rs.100/- RAJASTHAN FINANCIAL CORPORATION

(CREDIT APPRAISAL SECTION) Udyog Bhawan, Tilak Marg JAIPUR-302 005

Branch Office _________________

APPLICATION FOR SANCTION OF A TERM LOAN OF RS._______ LAC UNDER TOP-UP LOAN SCHEME FOR EXISTING BORROWERS OF MSMEs

I) GENERAL INFORMATIONS :

1. NAME OF THE UNIT/CONCERN/COMPANY

2. CONSTITUTION

3. ADDRESS FOR CORRESPONDENCE

4. ADDRESS OF WORKS

5. REGISTERED OFFICE

6. AMOUNT OF LOAN APPLIED

7. PRODUCTS MANUFACTURED

8. DATE/YEAR OF PRODUCTION

9. SIZE OF UNIT(MSME- Micro/Small/Medium/Hotel/Hospital)

10. REGISTRATION/MEMORANDUM NUMBER WIH INDUSTRIES DEPATT.

DATE OF APPLICATION

AMOUNT OF LOAN APPLICATION

Cash / Cheque No Dt. Rs.

P&G-CIRCULAR-1401-23-11-2011-TOP-UP-LOAN-SCHEME-FOR-EXISTING-

BORROWERS-OF-MSME Page 14 of 17


Page 15 of 17

11. REGISTRATION NUMBER & DATE WITH

REGISTRAR OF COMPANIES / REGISTRAR OF FIRMS

12. NAME OF PROPRIETOR / PARTNERS / DIRECTORS (PRESENT)

1

2

3

4

13. CHANGE OF DIRECTORS / PARTNERS (IF ANY), IF YES, THEN WHETHER CHANGES APPROVED BY RFC

II) (A) DETAILS OF FINANCIAL ASSISTANCE AVAILED FROM RFC : Rs. In lacs

Loan Sanctioned

S No.

Date Amount

Name of scheme

Loan disb.

Loan repaid

Loan O/S

O/D

1

2

3

(B) DETAILS OF FINANCIAL ASSISTANCE AVAILED FROM BANKS,

IF ANY : Rs. In lacs S.No. Name of Bank Amount of

Loan Nature of Loan

Outstanding

1

2

3

III) DETAILS OF FINANCIAL ASSISTANCE AVAILED IN SISTER CONCERNS FROM RFC : Rs in lacs

Loan Sanctioned S.No. Name of unit

Date Amount Loan disb.

Loan repaid

Loan O/s O/d


Page 16 of 17

IV) FINANCIAL PERFORMANCE OF THE UNIT: (Last 3 years) :

(Rs.in lac)Year Sales and other income

Net profit

Cash profit

Net worth

Note – Please attach copy of audited balance sheet for last three years

V) DECLARATION :

I /WE CERTIFY : 1. that all information furnished by me/us is true 2. that I / we have no borrowing arrangements, except

as indicated in the application, for the unit with any bank

3. that no legal action has been/is being taken

against me/us 4. that I /we shall furnish all other information

that may be required by RFC in connection with my / our application

5. that this and any other information available with

RFC pertaining to the borrowing unit present and future, may also be exchanged by RFC with any agency, RFC may deem fit and

6. that RFC, their representatives, any other agency

as authorized by RFC, may at any time inspect / verify our assets, books of account etc. in our factory and business premises.

I/ we further certify that, as on date, there are no overdues payable to financial institutions/ banks from the undersigned, other promoters and the company/


Page 17 of 17

companies in which I/ other promoters have interest as a promoter/ director/ proprietor. I/ we further certify that there are no statutory overdues pending against me/ other promoters/ company or other companies in which I am/ other promoters are director/ directors. I/ we further certify that there has/ have been no criminal/ economic offences conviction against me/ other promoters/ company/ concern. I also certify that no criminal/ economic offences are pending against me/other promoters of the company/ concern.

Signature of promoter(s)

Name of promoter

Date:

Place:

Encl: As above.

RFC/P&G 1402 RAJASTHAN FINANCIAL CORPORATION

(CREDIT APPRAISAL SECTION) Head Office, Udyog Bhawan, Tilak Marg,

Jaipur-302 005 Ref. No. RFC/LA-GBD/Gen/125/ 812 Dated :23.11.2011

: P&G CIRCULAR : (LA No. 583)

Reg: Scheme for financing for Builders/Commercial/

Residential complexes / Multiplexes, Hotels (tourism related activities) Hospitals, nursing homes for purchase of land & building.

The Scheme for financing for Builders/Commercial/

Residential complexes / Multiplexes, Hotels (tourism related activities) Hospitals, nursing homes for purchase of land & building was circulated vide P&G Circular No. 1117 dated 11.07.2005, thereafter various amendements/ modification were circulated from time to time.

The scheme was reviwed in the PC&CC meeting held on 14.11.2011 and it was decided that the celling of 80% loan amount may be reduced to 60% of the acceptable cost of land.

Further, it was also decided that new applications under the scheme for financial assistance for purchase of land from private parties shall not be registered after 01.12.2011. Processing of loan applications registered shall continue to be made as per the prevailing norms.

Other norms/ guidelines will remain unchanged. The above amendements may be incorporated in the PG at the appropriate place.

All concerned are advised to take a note of above and ensure compliance with immediate effect.

-sd- (Yaduvendra Mathur)

Chairman & Managing Director Copy to : 1. All Branches/Sub Offices 2. Standard Circulation at HO. 3. DGM (A&I) Eastern & Western Zone

P&G-CIRCULAR-1402-23-11-2011-SCHEME-FOR-FINANCING-TO-BUILDERS

Page 1 of 1

P&G-CIRCULAR-1403-23-11-2011-CONSOLIDATION-OF-LOAN-

SCHEMES Page 1 of 39

RFC/P&G/1403

RAJASTHAN FINANCIAL CORPORATION (Credit Appraisal Section)

Udyog Bhawan Tilak Marg

Jaipur-302 005 Ref. RFC/LA-12(76)/813 Dated : 23.11.2011

CIRCULAR (LA No. 584)

Reg. : Consolidation of Loan Schemes.

Attention is invited to P&G Circular No. 1377 dated 01.04.2011 directing to accept loan applications w.e.f. 01.04.2011 under the new schemes. Till detailed guidelines for the consolidated scheme are issued, the proposals would be considered and processed as per the applicable schemes prior to consolidation. After review & consolidation, 22 Loan Schemes including Good Borrowers Schemes will remain in operation which are mentioned at annexure “A”. Copies of new consolidated Loan Schemes are also enclosed. Now fresh loan applications shall be accepted & processed under the aforesaid 22 loan Schemes. However, earlier registered loan applications shall be processed as per norms of the respective loan schemes. All concerned are advised to take a note of above and ensure compliance with immediate effect.


Chairman & Managing Director Encl. As above. Copy to : 1. Standard circulation at HO. 2. All Branches/SOs 3. DGM (A&I), Eastern & Western Zone



ANNEXURE-A Details of consolidation of Loan Schemes

Part – A

Earlier Loan Schemes which will remain in operation without any merger. S.No. Name of the Scheme Purpose 1 Saral Scheme for Existing

Running Units For construction of building, acquisition P&M, MFA, F&F & working capital requirements for running industry & hotel.

2 Financing Against Assets Scheme ( FAAS)

For acquiring land, construction of building, acquisition P&M, MFA, F&F and working capital requirement for industry,hotel,hospital, guest house, residential commercial complex etc. on the basis of MRV of land and building.

3 Natural calamities Scheme

For rehabilitation/ reacquisition of damaged fixed assets caused by natural calamities.

4 Assets Financing Scheme (SME)

For purchase of fixed assets of existing industrial units and for addition of fixed assets.

5 Switch over loan scheme Financing against fixed assets on switch over of cases of other FIs/ Banks



6 Single Window Scheme (For Tiny and SSI units having project cost upto Rs. 200.00 lac)

For acquisition of land, construction of building, acquisition of P&M, MFA and working capital requirement.

7 Scheme for Qualified Professionals

For acquisition of land & building, P&M, F&F, MFA.

8. Scheme for Textile Industry under Technology Up-gradation Fund.

To encourage technology up-gradation and modernization in textile industry. Presently the scheme is in abeyance. May operative as per new guidelines of GOI as & when received.

9. 10 11 12 13

Good Borrower Schemes Short Term loan scheme. Working capital term loan scheme including pass book scheme. Special purpose working capital term loan scheme. Scheme for Working capital term loan to non assisted unit Gold Card loan scheme.

Term loan for acquisition of fixed assets. Loan to meet out the working capital requirement. For replacement of blade & segment, carding cloth, back up rolls and bearings. Loan to meet out the working capital requirement to non assisted units. For acquisition of fixed assets / working capital requirement without detailed appraisal.



14 15 16

Platinum card loan scheme. Scheme for Existing non assisted unit with proven track record and new units promoted by good borrower (UPGB). Flexi Loan Scheme

For acquisition of fixed assets / working capital requirement without detailed appraisal. For expansion/new unit promoted by Good Borrowers of Corporation/FIs For acquisition of fixed assets & working capital.

17 Top-up Loan Scheme for existing borrowers of MSME

For replenishment of repaid principal sum.

Part - B

List of new consolidated schemes

No. Name of the Scheme Purpose 18 General Project Loan

Scheme for Manufacture, Preservation & Processing, Assembling, Repairing Packing, Mining, Wind Farm/other form of power etc.

For acquisition of land, construction of building, acquisition P&M, MFAs, Removal of overburden in Mining Projects.

19 Scheme for Service Sector for Tourism & Hotel (Including Dhaba, Restaurant, Guest House, Resorts, Paying Guest House, Amusement Park, Convention Centre,

For acquisition of land, construction of building, acquisition P&M, MFAs, Furniture & Fixtures etc.



Conference Hall) Hospital & Nursing Home, Information Technology, Professional Educational Institute.

20 Scheme for CRE Sector

a) Residential complex/ flats

b) Commercial complex/ showrooms / sales outlets.

c) Builders scheme for purchase of land and building.

For acquisition of land, construction of building, acquisition MFA. For purchase of Land & Building

21 Special ServiceSector Schemes for Marketing of SSI Products, Development, Maintenance and Construction of Roads

For acquisition of land, construction of building, acquisition of P&M & MFA and Transport Vehicles.

22 Scheme for specified class/persons i.e. ST/SC entrepreneurs, Women entrepreneurs, physically disabled persons & Ex-convicts.

For acquisition of land, construction of building, acquisition of P&M & MFA.

Note : After issue of the P&G Circular No. 1377 dated 01.04.2011 these loan Schemes namely Fast Track Loan Scheme for SME & Commercial /Residential properties, Scheme for setting Private Bus Stand & Taxi Stand with amenities like shops, cyber café etc. and Special Service Sector Schemes for Transport Vehicles have been withdrawn.



GENERAL LOAN SCHEME1. INTRODUCTION :-

Rajasthan Financial Corporation was constituted in the year 1955, under the SFCs Act, 1951 with the prime objective to extend financial assistance to industrial concern in the State. Since then RFC has come a long way, adapting and attuning its activities to the changing industrial needs and market demands.

2. PURPOSE OF LOAN :-

The loan is provided for the purpose of acquisition of land, construction of building, acquisition of plant & machinery, MFAs and removal of overburden (for mining purpose) for project (new, expansion, diversification, modernization) of industrial concern including wind farm/power generation etc.

3. ELIGIBILE BORROWERS :-

Proprietorship concerns, partnership firms, registered co-operative societies, registered trusts and companies.

4. LOAN LIMIT / AMOUNT OF LOAN :-

i) Proprietary and partnershipunits/ Trusts

upto Rs.8.00 crore

ii) Companies & Co-operative Societies having net worth not exceeding to Rs. 30.00 crore

upto Rs. 20.00 crore

5. SANCTIONING AUTHORITY :- Loans are sanctioned by sanctioning authorities in field office and Head office as per the prevailing delegation of powers of sanction.

6. SECURITY :-

The loan shall be secured by following : i) Mortgage/ hypothecation of existing and proposed

land, building, P&M, and other Misc. Fixed Assets of the unit.

ii) Personal Guarantee of all the promoters/ trustees/ office bearers/ directors.

iii) Any other type of security, as may be required by sanctioning authority.



7. ADDITIONAL SECRUTIY / COLLATERAL SECURITY :

Need based collateral security on the merits of the case and as per guidelines specified separately for a particular product / item shall be required.

8. FINANCIAL PARAMETERS :

a) MARGIN OF SECURITY (MINIMUM) :

i) land and building 30% ii) P&M, and MFA 30% (40%

in case of mining)

iii) Self fabricated items, second hand assets, Furniture & Fixtures, Civil Construction and removal of overburden in case of mining project.

50%

b) Promoters Contribution

(minimum)

33% of Proposed Project Cost

c) Debt Equity ratio (Maximum)

2:1

d) DSCR (Minimum)

1.70:1

Note : Higher security margin and other parameters, if specified for particular product / items shall be applicable as per policy of the Corporation.

9. RATE OF INTEREST :

The rate of interest shall be as applicable as per the prevailing policy of the Corporation.

10. LIQUIDATED DAMAGES :

Liquidated damages on default amount shall be as applicable from time to time as per policy of the Corporation.



11. REPAYMENT PERIOD (INCLUDING MORATORIUM PERIOD) : The loan shall be repayable in a period not exceeding 7 years including moratorium period not exceeding 12 to 18 months from the date of commercial production as envisaged in the appraisal note.

12. OTHER NORMS / CONDITIONS :

i) PROCESSING CHARGES : Processing charges will be charged on sanctioned amount as per prevailing norms of the Corporation.

ii) IN CASE OF WIND POWER PROJECTS : A) Power Purchase Agreement (PPA) agreement is

to be made between borrower and JVPNL / concerned DISCOM / Third party before first disbursement of loan.

B) An Escrow (Trust and Retention) account is to be opened with a commercial bank by the borrower; for receipt of sale proceeds/ revenue of power. The said account shall be opened before first disbursement of loan. Through this account, the Corporation will have the first charge on the sale proceeds/ revenue of power. Borrower shall obtain permission for establishing wind power plant from RREC/ State Government before sanction of loan.

iii) IN CASE OF MINING PROJECTS :- A) 100% of collateral security of loan amount. B) Maximum investment for removal of

overburden, quarry improvement & construction of Roads should not exceed to 50% of the investment on mining machinery & equipments.

C) Should have valid mining lease and the period of mining lease should not be less than the double the period of repayment.

iv) The concern / company shall furnish building map duly approved by the competent authority.

v) The other norms as contained in the PG and

amended from time to time shall be applicable.



LOAN SCHEME FOR SERVICE SECTOR

1. INTRODUCTION : Rajasthan has sheer diversity and richness of tourist attractions and its products e.g. forts, places, old and architecturally rich havelies, wild life sanctuaries etc and become one of the most tourist destinations with leading hotel chains. Rajasthan is also emerging a preferred place for ITes industry with the presence of well known players like Genpect and Infosys BPO. The Rajasthan Financial Corporation is registering its presence for providing financial assistance in a significant way.

2. PURPOSE OF LOAN :

The loan is provided for the purpose of acquisition of land, construction of building, acquisition of plant & machinery, MFAs and furniture & fixtures, equipments essential amenities, air conditioning, addition, alteration, renovation etc. for setting up a project for Tourism & Hotel (including Dhaba, Restaurant, Guest House, Resorts, Motel, Paying Guest House, Amusement Park, Convention Centre, Conference Hall), Hospital & Nursing Home, Diagnostic Centre, Information Technology, and Professional Educational Institute.

3. ELIGIBLE BORROWERS :

Proprietorship concerns, partnership firms, registered co-operative societies, registered trusts and companies.

4. LOAN LIMIT / AMOUNT OF LOAN :

Maximum loan limit for general projects shall be as under :- i) Proprietary and partnership

units/ Trusts upto Rs.8.00 crore

ii) Companies & Co-operative Societies having net worth not exceeding to Rs. 30.00 crore

upto Rs. 20.00 crore

iii) Maximum loan limit for the following service projects : a) Dhaba Rs. 10.00 lacs.



b) Guest House From Rs. 10.00 lac to Rs.100.00 lac (restricted upto 70% of MRV of existing land & building in case Building Plans are duly approved otherwise 70% of MRV of land only.)

c) Professional Educational Institute

Rs. 1000.00 lacs.

d) Purchase of medical & diagnostic equipment

Rs. 5.00 lacs to Rs. 25.00 lacs.

5. SANCTIONING AUTHORITY : As per the prevailing delegation of powers of sanction. The powers for sanction of loan for Information Technology projects and Professional Educational Institute projects are vested at Head Office only.

6. SECURITY :

The loan shall be secured by following: i) Mortgage/ hypothecation of existing and proposed

land, building, P&M, and other Misc. Fixed Assets of the unit.

ii) Personal Guarantee of all the promoters/ trustees/ office bearers/ directors.

iii) Any other type of security, as may be required by sanctioning authority.

7. ADDITIONAL SECURITY / COLLATERAL SECURITY :

i) Need based collateral security on the merits of the case and as per guidelines specifiedseparately for a particular product / item.

ii) In case of I.T. projects, minimum collateral security shall be equal to loan against P&M.



iii) In case of Professional Educational Institute projects, the minimum collateral security shall be 25% of the loan amount.

iv) In case of Hotel projects for a term loan upto Rs.25.00 lac, minimum collateral security shall be 25% of the loan amount.

v) In case of Restaurant projects for a term loan upto Rs.15.00 lac, minimum collateral security shall be 25% of the loan amount.

vi) In case of purchase of Medical & Diagnostic Equipments, the security including collateral and primary (land & building only) shall not be less than 150% of loan amount.


a) MARGIN OF SECURITY (MINIMUM) : i) land and building 30% ii) P&M and MFA 30% iii) Self fabricated items, old / second

hand assets, Furniture & Fixtures. 50%

b) Promoters Contribution

(minimum) 40% for IT, Guest house, Professional Educational Institute & for purchase of Medical & Diagnostic Equipments. 33.00% of proposed project cost in other cases.

c) Debt Equity ratio (Maximum)

Note more than 2:1

d) DSCR (Minimum) 1.70:1 e) Assets Security Ratio 2:1 in case of Professional

Educational Institute. Note : Higher security margin shall be applicable for the following projects :- a) Information Technology 40% on P&M i.e. Hardware &

Software and other equipments.



b) Professional Educational Institute

50% on all assets considered for finance

9. RATE OF INTEREST :

The rate of interest shall be as applicable as per prevailing norms of the Corporation.

10. LIQUIDATED DAMAGES :-


11. REPAYMENT PERIOD (INCLUDING MORATORIUM PERIOD :-

a) The loan shall be repayable in a period not exceeding 7 years including moratorium period not exceeding 12 to 18 months from the date of commercial production as envisaged in the appraisal note.

b) In case of purchase of Medical & Diagnostic Equipments, the loan shall be repayable in 4 years including 6 months moratorium period.

12. OTHER NORMS / CONDITIONS :

a) PROCESSING CHARGES : Processing charges will be charged on sanctioned amount as per prevailing norms of the Corporation.

b) FOR HOTEL & RESTAURANT : A hotel / motel to be eligible for availing loan from corporation must necessarily consists minimum of 10 rooms, half of which should be air conditions while at least one forth of the rooms must have attached bath rooms, and there should be at least one bathroom for every four of the remaining bed rooms. A restaurant alone shall be eligible for availing financial assistance under the scheme if it is contains sitting capacity of not less than 40 persons.

c) PAYING GUEST ACCOMMODATION : Only those persons would be eligible for financial assistance under the scheme:



i) Who own a house accommodation in any of the cities identified by the Department of Tourism for paying guest accommodation.

ii) Are residing in the house. iii) The house owner should be registered in the

office of the Director of Tourism for Paying Guest Accommodation.

iv) Should not have more than 7 rooms and 15

lettable beds. v) The owner should submit approval of building

plan and NOC from local authority.

d) HOSPITAL & NURSING HOMES :- i) have facilities for diagnosis and treatment

of indoor as well as outdoor patients with 20 or more beds.

ii) are willing to provide medical services at

concessional rates to patients from low income groups.

iii) Should have back-up of expert services of at

least one Post Graduate doctor with qualification of MD/MS etc on full time basis.

iv) In case of Diagnostic Centre, at least one of

promoter should have minimum qualification of MBBS/BDS/equivalent qualification of Ayurvedic treatment.

v) Loan shall be considered on the

recommendation of the Expert Advisory Committee, comprising two expert doctors.

vi) Hospital/Nursing Home providing Allopathic

treatment only would be eligible for coverage with the scheme.



e) PROFESSIONAL EDUCATIONAL INSTITUTE :- i) Financial assistance under the scheme shall

be considered to the concern involved in conducting courses in Designing, Technical, Management, Medical , Hospitality etc. to provide trained man power or facilities to industrial/service sector. Schools and other non professional institutes shall not be considered for financing.

ii) The concern shall furnish the required permissions from Govt./ AICTE / concerned university/ Board etc for conducting the courses/ running the institution.

iii) The concern to open an Escrow account to route all its receipts through this account to ensure the payments of Corporation dues on priority from this account.

iv) Permission/ approval/ NOC to be obtained from the competent authority as per conditions of allotment letter/ lease deed to mortgage the titles in favour of the Corporation and for exercise the powers action under provisions of SFCs Act and loan agreement.

v) The borrower shall submit an undertaking that RFC can take over possession or management or both of the concern /firm /company /society in exercise of powers conferred on the Rajasthan Financial Corporation under section 29 of SFC Act,1951 in case of default and breach of any condition of sanction letter and loan agreement to be executed in favour of RFC.

f) The concern/company shall furnish building map duly

approved by the competent authority.

g) The other norms as contained in the PG and amended from time to time shall be applicable.



SCHEME FOR CRE SECTOR 1. INTRODUCTION :

This scheme aims to provide financial assistance for the following : a) For construction of commercial complexes, showrooms,

sales outlets independent of hotel business,

b) For construction of housing complex and residential houses / flats on commercial basis.

c) Exclusively for purchase of land & Building from Government Authorities for carrying out construction of commercial / residential complexes / multiplexes, hotels (Tourism related activities) Hospitals, Nursing Homes etc. which are covered u/s 2 (C) of SFCs Act.

2. i) For construction of commercial / residential complex

:- a) Acquisition of land b) For construction of building for housing

complexes/apartments (commercial cum residential complex), commercial complex

c) For acquisition of required plant and

machinery/equipment, like lifts, air conditioning plant and fire fighting equipments, other safety devices and also other plants and equipments required for modern type of housing complexes, commercial complexes

d) Furnishing of houses/flats and Furniture and

Fixture for commercial complex

ii) Exclusively for purchase of land and building as per Eligibility Criteria mentioned at 3 (A) (ii).

3. ELIGIBILITY :

A) ACTIVITIES / CRITERIA : i) For construction of commercial/ residential

complex : Construction of houses, flats, apartments



and housing complexes Commercial complexes, showroom(s) & sales outlets providing infrastructure facilities like Electricity, Water, Sanitation, Telephones, Internet, E-Commerce, Lift, Air-conditioners and Cooling, Parking, Storage etc.

The financial assistance for residential complex would be provided for construction activities for the sale on commercial basis.

For purchase of commercial for running permissible activities is also allowed under commercial complex, show rooms and sales outlets scheme.

Exclusively for purchase of land and building as per following Eligibility Criteria :

ii)

The following marketable and mortgageable fixed assets (land & building) which is free from all encumbrances are eligible for availing financial assistance under the Scheme:- Assistance against the land cost allotted/ auctioned by JDA, UIT, Municipalities, RIICO, RSHB or any Govt. Authorities or Banks, located at prime location of the municipal areas of the cities at Jaipur, Bikaner, Jodhpur, Kota, Ajmer, Alwar and Udaipur for construction of commercial/ residential complexes on commercial basis, multiplexes, hotels ( Tourism related activities) Hospitals, Nursing Homes.

B) ELIGIBLE BORROWER :

The borrowers may be a concern having constitution as proprietor, a partnership firm, a company, a registered public trust or a Registered Co-operative society constituted to run the venture on commercial lines as builders.

C) DEALINGS WITH THE FINANCIAL INSITUTION / BANKS : Prima facie there should not be any adverse reporting against the borrower and its sister concerns by any financial institution/ bank in the past and their dealings with the financial institution/ bank is satisfactory, if any financial assistance is availed.



4. LOAN LIMIT / AMOUNT OF LOAN :

i) For construction of commercial / residential complex

:- i) Proprietary and partnership

units / Trusts Upto Rs. 8.00 crore

ii) Companies & Co-operative

Societies having net worth not exceeding to Rs. 30.00 crore

Upto Rs. 20.00 crore

ii) Exclusively for purchase of land and building as

per Eligibility Criteria mentioned at 3 (A) (ii). a) For exclusively purchase of land & building the

loan from Rs. 50.00 lacs and upto Rs. 1000.00 lacs in case of companies, Corporation and Regd. Co-operative Society and upto Rs. 800.00 lacs in other cases. However, loan below Rs. 50.00 lacs but not less than Rs. 5.00 lacs can be accepted on individual merit of the case. Thereafter the same shall be forwarded to HO after completing the required parameters for further processing the case.

b) If the borrower approaches for further

financial assistance for construction of building, acquisition of Plant and Machinery, MFA and furniture and fixture, the same shall be considered by the Corporation as per norms prevailing under the respective scheme.

5. SANCTIONING AUTHORITY :

As per the prevailing delegation of powers of sanction. 6. SECURITY :-

a) The loan will be secured by an equitable mortgage of land/ buildings and/or hypothecation of P&M, MFA, F&F etc. to cover by way of first charge on all existing and future assets of the concern / company.

b) Personal guarantee of proprietor/ partners/ directors/ Trustee/ Office Bearer for securing repayment of loan and interest thereon.



7. ADDITIONAL SECURITY / COLLATERAL SECURITY :

a) Quantum of collateral security shall be decided on case to case basis on merit.

b) The Corporation may consider finance further for construction of commercial / residential complex at Jagatpura area on merits of the case after obtaining need based collateral security.


a) Margin of Security (Minimum) :

For construction of residential / commercial complex. i) on Land, building, P&M and equipments 30% ii) On furniture and fixture 50%

b) Promoter’s Contribution : Minimum 40% of the project cost.

c) Debt Equity Ratio : Not more than 2 : 1

9. INTEREST RATE : The rate of interest shall be as applicable from time to time payable in quarterly installments. Rate of interest shall be reset as per prevailing norms. The rate of interest prevalent under Builder’s Scheme for purchase of land shall be applicable, if the concern / company avails loan against land and less than 50% of loan for construction of building. If the loanee approaches the Corporation for further term loan under project loan scheme for completion of the project after availing loan for land under Builders Scheme, the revision in the rate of interest and repayment period as applicable to the respective project loan scheme may be made subject to fulfilling the following conditions : a) If the unit approaches the Corporation for loan under

Project Loan Scheme, within a period of six month from the date of sanction of loan under Builders Scheme;



b) Amount of further loan sanctioned under Project Loan Scheme shall not be less than 33% of loan amount sanctioned under Builders Scheme, in case the property has been purchased from a Government body.

In such cases, the revised rate of interest under the respective project loan scheme shall be charged on theexisting outstanding in the land loan account from the date of execution of loan documents for further term loan subject to the condition that in case any default is made in the existing land purchase account, the Corporation shall revert interest rate to original rate of interest charged in the loan account of land purchase, in addition to liquidated damages payable from time to time on the amount of default for the default period as per norms. Modification deed for charging revised rate of interest in the existing land purchase loan account shall also be executed alongwith execution of loan documents for further term loan.

10. LIQUIDATED DAMAGE :


11. REPAYMENT PERIOD :

i) For construction of housing complex, residential

houses / flats, commercial complexes, showrooms and sales outlets : The amount shall be repayable in a period not exceeding 5 year including moratorium period upto 12 months from the date of completion as envisaged in the project depending upon DSCR.

ii) Exclusively for purchase of land & Building : The repayment period shall be 3 ½ years including the moratorium period not exceeding 6 months.

12. OTHER NORMS / CONDITIONS :-

A) SPECIAL : a) Coverage :

For exclusive purchase of land & building :



Immovable property (land & Building only) mentioned at 3 A (ii) of Eligibility Criteria.

b) Admissibility of loan :

For exclusive purchase of land & building : In case of direct allotment / auction by the Govt. authority as mentioned in eligibility criteria of the Scheme, the term loan shall be considered @ 60% of the acceptable cost of land.

c) Disbursement :

i) Mode of disbursement for exclusive purchase of land and building : a) As the funds are required for the

purchase of assets from Govt. Authorities or Private Parties, therefore, the eligible loan amount shall be disbursed directly to the seller after receipt of registered sale deed / lease deed by the Corporation and equitable mortgage is created in favour of the Corporation. The Corporation may issue an assurance letter in favour of the seller with regard to release of eligible loan amount subject to compliance of condition of the sanction and creation of equitable mortgage in favour of the Corporation.

b) The disbursement can be made within 6 months from the date of sanction. However, disbursement beyond 6 months can be considered by the competent authority after charging upfront fee @ 0.1% of amount to be disbursed.

ii) In commercial/ residential complex schemes, if disbursement is not availed upto the implementation schedule as envisaged in the appraisal note, commitment interest shall be charged by the Corporation @ 1% on the balance unavailed loan amount.



d) OTHERS :

i) The location should have been earmarked for residential or commercial cum residential located in cities including district Head Quarters having adequate scope.

ii) Financial assistance shall be made available on construction activities under this scheme for the construction of residential flats / houses / complex and the said construction is made for sale on commercial basis.

B) GENERAL :

1. For construction of commercial / residential complex :-a) The residential complex, commercial

complex, show-room/sales outlets must be established at prime location/main market centre.

b) Financial assistance shall only be made on submission of approved map from the local authorities.

c) In both the commercial complexes and Residential complex schemes NOC for sale of any area/flats in the complex shall be issued after deposition of 50% of sale proceeds (as per approved project report) and NOC for the sale of last 10% of saleable area will be issued after clearance of entire loan.

d) In case the borrower intends to carry any commercial activity in the retained area of commercial complex like setting up of Cyber cafe, STD/ISD/PCO, Restaurants etc. which are eligible for financing as per norms ofthe Corporation, the same may also be considered for financing in the respective scheme.



e) In case of leasing out of any part of the

commercial complex, the same will be leased out with the condition that the lessee/tenant will directly deposit the rent/lease money with the Rajasthan Financial Corporation as and when the rent/lease money is demanded by Rajasthan Financial Corporation.

2. Powers regarding legal action :-

The cases sanctioned under the scheme must be monitored closely. Branch Manager shall have full powers for taking legal action in case of two consecutive default under the SFC’s Act or under other law in respect of the cases financed under the Scheme so as to effect recovery without delay together with action under section 138 (b) of the Negotiable Instruments Act for dishonour of the cheque.

3. Undertakings :

i) It will comply all legal requirements i.e. obtaining NOC from RPCB, NOC from Local Authority and other Department, if required.

ii) That the borrower shall get the approved site plan/ approved plan for construction of commercial complex/ residential complexes/ flats/ multiplexes, hotels (tourism related activities) construction of building shall be made as per the approved building plan/ site plan and FAR allowed by competent authority. In case, there is any deviation, the same shall be got approved from the competent authority.

iii) That no part of the land / complex will be leased out / rented out without prior permission of the Corporation.

iv) The unit shall furnish an undertaking to



utilize the loan amount for creation of fixed assets as mentioned in the eligibility criteria.

v) That no litigation in any court/ tribunal/ forum related to the property proposed to be mortgaged is pending and there is nodispute about the properties and the property is free from all encumbrances.

vi) That the company / concern shall not sale any part / area of the complex without obtaining the NOC from the Corporation during the currency of the Corporation loan and in case of sale the concern shall deposit with the Corporation 50% of the sale proceeds (as per project report submitted) of any part of the complex till the clearance of total term loan of the Corporation. However, the NOC for last 10% of area / value of complex shall be released only after receiving the entire outstanding loan amount.

vii) That the company / concern shall not give the possession of any area in the complex to the purchaser unless and until the sale proceeds as per condition no. 5 (vi) above is deposited with the Corporation and NOC is obtained.

viii) That the company / concern shall fulfill all the terms and conditions stipulated by local authority approving building plan.

ix) That the company shall install a suitable Rain Water Harvesting System for water conservation for increasing the level of ground water.

x) That the company / concern shall engage qualified and experienced personnel in the supervision of construction work and adequate safety measures shall be adopted



for hazard resistance and protection. Life saving equipments and devices shall be kept ready for emergency use.

xi) That the borrower hereby agrees to pay a penalty of Rs. 500/- on its every dishonored cheque given by the borrower to the Corporation and the borrower further agrees and gives its consent that in case of non-payment of above penalty by the borrower the Corporation has every right to recover and debit the above amount in his loan account under the head of “other charges” of the Corporation without prejudice to all other legal rights of the Corporation available under the provisions of the Negotiable Instrument Act and/ or under the provisions of all other law in force.

xii) That the company / concern shall display a board of 6’ x 8’ at site mentioning that the project has been financed by RFC and the purchaser shall have to obtain No Dues Certificate from RFC before purchasing the area by them in the complex.

xiii) That the directors of the company shall certify that there are no criminal/ economic offence cases are/ were reported against him and the concern or are pending.

xiv) That transparency and fair business dealings/ ethic shall be maintained with the prospective buyers/ purchasers.

xv) That the company / concern shall deposit the sale proceeds of the saleable area as per the details mentioned at condition no. 5 (vi) till the clearance of total term loan.



4. A specific condition may be stipulated while

sanction of loan that no settlement of the account under the scheme shall be considered as no sacrifice should normally be made by the Corporation in respect of amount of principal and interest thereon.

5. The promoter / builder / developer / borrower to

disclose the charge or any other liability on the plot / property and the information of particular scheme related to Housing / commercial complex in brochure, pamphlets, booking form / application and advertisement in news papers / magazines etc., inviting public at large to purchase shops/ flats and properties. It will also be indicated that they have to obtain certificate of NOC/ permission from the Corporation before execution of sale deed in favour of purchaser.

6. The borrower shall furnish PDCs for the

installments of total term loan & intt. 7. The borrower shall keep insured the fixed

assets i.e. Building, P&M / MFA every year till the entire loan is repaid and copy of insurance policy shall be furnished to the Corporation with hypothecation clause in favour of RFC.

8. The borrower shall display a board of 6’ x 8’ at

site mentioning that the project has been financed by RFC and the purchaser shall have to obtain No Dues Certificate from RFC before purchasing the area by them in the complex and the same shall be verified by BO.

9. The borrower shall create & maintain an ESCROW

a/c during the currency of Corporation loan in favour of RFC with a scheduled bank wherein sale proceeds of the complex shall be deposited.

10. The borrower shall not sale any part/area of

the complex without obtaining the NOC from the



Corporation during the currency of the Corporation loan and in case of sale the concern shall deposit with the Corporation 50% of the sale proceeds (as per project report submitted) of any part of the complex till the clearance of total term loan of the Corporation. However, the NOC for last 10% of area / value of complex shall be released only after receiving the entire outstanding loan amount.

11. The Branch Manager may ensure that there is proper

demarcation / boundary wall is to confirm the exact location of the land in question proposed in security of the RFC loan and the land is having clear approach from main road.

12. The borrower shall not give the possession of

any area in the complex to the purchaser unless and until the amount as per above condition No. 12 is deposited with Corporation and NOC for the same is obtained.

Pre disbursement condition for exclusive purchase of land and building :- i) The borrower shall keep insured the fixed assets i.e.

Building, P&M, F&F, MFA every year till the currency of Corporation loan and copy of insurance policy shall invariably be furnished to the Corporation.

ii) In case of release of direct payment of admissible loan amount o the Govt Authorities, the disbursing authority before release of admissible loan shall ensure that the remaining amount (purchase price – admissible loan) has been paid by the borrower and the cheque / DD has been cleared.

iii) The disbursement can be made within 6 months from the date of sanction conveyed. Thereafter, upfront fee @ 0.1% of amount to be disbursed shall be charged.



Pre cautionary measures to be taken for financial assistance to CRE Sector :- 1. Where land is allotted at concessional rate then before

accepting the property clarification/ information/ permission may be obtained from the lessor in respect of cost of land and to allow the corporation to mortgage the land with clear stipulation that in case of default the corporation can recover its dues by way of sale/transfer/lease out the said property without obtaining further permission of the lessor and without paying any extra amount to the lessor and if any amount is payable in respect of present rate minus concessional rate then it should be paid by the purchaser and not by the Corporation. ARRC and BMs may also comply with the same at the time of sale of such units under possession.

2. As per prevailing practice a condition shall invariably be stipulated in all such loan proposals that before disbursement of the loan, the borrower shall display a sign board at the site mentioning that the property is mortgaged to the Rajasthan Financial Corporation and before selling any part of the property/ flat NOC of RFC is necessary. However, BOs shall strictly follow FR Circular No. 600 dated 20.04.2010 issued in this regard. Case-wise monitoring of cases may be made by FR Section on monthly basis.

3. In case the building is already constructed then during appraisal the borrower may be asked to submit details of sources of funds to ascertain that the building is not constructed with the financial assistance/loan of FIs/Banks etc. and not with the advance amount received against any sale agreement etc. Copy of bank statement of borrower and its promoters may also be obtained to check the position of funds during appraisal and disbursement.

4. Prior to sanction of loan, Borrower/promoters shall be required to submit affidavit stating therein that the property in question is free from all encumbrances and they have not entered into an agreement with anyone in respect of said land and in respect of any part of constructed building and had not received any advance amount from anyone and the same status shall be maintained during currency of loan unless any written permission is taken from RFC.



SPECIAL SERVICE SECTOR SCHEME

1. INTRODUCTION :- RFC provides financial assistance to meet the financial requirement of the following special services. A) Financial assistance for Marketing of SSI Products,

B) Assistance for development, maintenance and

construction of roads.

2. PURPOSE OF LOAN : A) Providing financial assistance for Marketing of SSI

Products : RFC provides financial assistance to SSI units to undertake various following activities necessary to increase their sales turnover in domestic and export market. - Marketing Research. - R&D product upgradation and standardization. - Preparation of strategic marketing plan. - Advertising, Branding Catalogue preparation,

production of audio-visual aids etc. - Participation in trade fairs and exhibitions,

undertaking sales promotion tours etc. - Establishing distribution net work including

showrooms/retail outlets and warehousing facilities.

- Training of personnel in activities relevant to

marketing etc. - For setting up new commercial complexes,

showrooms and/or renovation of existing complexes/ showrooms for marketing predominantly small scale, cottage and village industry products.



- Development of infrastructure like setting up of

permanent exhibition centers, industrial parks like garments and software parks, marketing emporium, design and fashion forecasting studios, auction houses, container depots and container freight stations and trade centers (within India and abroad) such infrastructural products should largely benefit the small scale cottage and village industries.

- Setting up of facilities for providing marketing

support to SSI units for example data bank, libraries, internet services etc. and assistance to facilitate setting up and expansion of such services by service providers as may be relevant.

- An other activity directed towards promoting the

marketing of SSI Sector in domestic or international market.

Note : Assistance for working capital under the scheme shall not be provided .

B) Assistance for development, maintenance and construction of roads :- Loan may be considered for acquisition of capital goods/equipment required for development, repairing, maintenance and construction of roads. It is to be ensured that the aggregate investment in P&M (both existing and proposed) does not exceed the prescribed limit for SSE.

3. ELIGIBILITY :-

A) Providing financial assistance for Marketing of SSI Products: Existing SSE in the small scale sector with a good track record and sound financial position are eligible for assistance. New units could also be considered on a selective basis. Specialized organizations providing marketing assistance infrastructure and support services to industrial concerns in the small scale sector.



Financial assistance shall also be provided for show rooms coming up in rented premises or the premises not having clear title documents provided the sanctioning authority is satisfied about the credentials of the promoters, security of loan and viability of the project. The collateral security of immovable properties having clear title documents, having value not less than the term loan amount shall invariably be taken in such cases.

B) Assistance for development, maintenance and construction of roads: Existing unit which is in operation for at least 3 years and has earned profits during the past 2 years, the unit should not be in default to any institution/banks.


The amount of loan would be need based. 5. SANCTIONING AUTHORITY :

The loan would be sanctioned by sanctioning authorities as per the delegation of powers delegated from time to time.

6. SECURITY :-

A) Scheme for providing Financial assistance for Marketing of SSI Products: Exclusive charge over the assets acquired out of the loan, first charge on existing fixed asserts and personal guarantee of proprietor /partners /trustees/directors.

B) Assistance for development, maintenance and construction of roads: The loan granted under the scheme would be secured by hypothecation of plant and equipment and personal guarantee of proprietor /partners /trustees/directors.



7. ADDITIONAL SECURITY / COLLATERAL SECURITY :-A) Scheme for providing Financial assistance for

Marketing of SSI Products: Collateral security as may be deemed necessary be taken.

B) Assistance for development, maintenance and construction of roads: The loan will be secured by 3rd party personal guarantee from 2 respectable persons having immovable property in the State of Rajasthan for value not less than the amount of loan. In addition to it,the collateral security to the extent of loan amount against moveable assets would also be required.

8. A) Margin of security (minimum) in

other schemes 30%

B) Promoter Contribution (minimum) 33% of the proposed project cost.

C) Debt Equity Ratio Not more than 2:1 D) DSCR (minimum) 1.70:1

9. INTEREST : The rate of interest would be as applicable from time to time as per policy of the Corporation.

10. LIQUIDATED DAMAGES :-

Liquidated damages shall be charged on the amount in default for the period of default as applicable from time to time as per policy of the Corporation.

11. PERIOD OF REPAYMENT (INCLUDING MORATORIUM PERIOD ):

A) Scheme for providing Financial assistance for

Marketing of SSI Products : This may vary between three and five years with a moratorium upto one year for term loans to SSIs. The period of repayment could be extended to 8 years for marketing related infrastructure projects.



B) Assistance for development, maintenance and construction of roads: Upto 5 years including moratorium period upto 12 to 18 months.

12. OTHER NORMS / CONDITIONS :-

PROCESSING CHARGES : Processing charges will be charged on sanctioned amount as per prevailing norms from time to time as per policy of the Corporation.



SCHEME FOR SPECIFIED CLASS/PERSONS

1. INTRODUCTION : RFC provides financial assistance for the social upliftment of Specified persons/Entrepreneurs i.e. Scheduled Caste/Scheduled Tribes, Physical disabled persons, Ex-Convicts and Women Entrepreneurs so that they may start their own venture and earn their livelihood.

2. PURPOSE OF LOAN :-

A) SCHEDULED CASTES / SCHEDULED TRIBE :

Scheduled Castes /Scheduled Tribes persons may be considered loan for acquisition of fixed assets, transport vehicle, construction of hotel etc.

B) PHYSICAL DISABLED PERSONS : Physical disabled persons may be considered loan for acquisition of fixed assets only. Loan for installation of machinery in rented premises can also be considered for both the categories(A & B) of the above persons..

C) EX-CONVICTS : Ex- Convicts can be considered loan for construction of buildings, acquisition of equipments and also for working capital requirements on the lines of composite loan scheme.

D) WOMEN ENTREPRENEURS : Assistance may be granted to the women entrepreneurs for:- i) Purchase of land. ii) Construction of building. iii) Acquisition of required P&M, Furniture &

fixtures, Misc. Fixed Assets etc.

3. ELIGIBILITY :- A) ELIGIBLE INDUSTRIES :-



SCHEDULED CASTE / SCHEDULED TRIBES : All the industries which are eligible for financial assistance under the provisions of SFCs Act.

Physical disabled persons: Industries which are registered with the Directorate of Industries, Rajasthan Jaipur and promoted by the disabled person(s) (as proprietorship, firm or partnership firm). In the case of partnership firm the share of disabled person(s) should not be less than 51%

Ex- Convicts: All Industrial projects/ crafts promoted and managed by Ex-convicts engaged in any of the following or similar other crafts for which he has received training during the course of his imprisonment will be eligible for assistance under the scheme. These include the following process/production. i) Woolen carpets. ii) Daries and table mates. iii) Clother weaving on hand operated / electric

operated looms. iv) All type of furniture making on electrically

operated machines. v) Chair canning. vi) Readymade garments. vii) Washing and dyeing. viii) Hosiery weaving. ix) Niwar and Nathi Dora (File Tag). x) Making of steel almirahs, racks, trays, baskets

etc.

xi) Candles. xii) Leather craft.



Women Entrepreneurs:

All projects mentioned hereunder would be eligible for financial assistance under the scheme: i) New projects of Micro & Small Scale Enterprises

including service industries (except Road transport operators).

ii) Existing Micro and Small Scale Industrial and Service Enterprises undertaking expansion, modernization, technology up gradation and diversification.

B) PERSONS ELIGIBLE :-

Scheduled Caste/Scheduled Tribes: Industries promoted by persons belonging to SC/ST are eligible for loans under the Scheme. The applicant should produce certificate of his/her caste either from Tehsildar or First Class Magistrate.

Physical disabled persons: Persons who have been issued identification card by the Director, Social Welfare, Rajasthan identifying disability shall be treated as disabled persons.

Ex- Convicts: The ex-convicts who fulfill the following criteria will be eligible for assistance under the scheme. i) Who has been in imprisonment for a period of not

less than 7 years. ii) Who is resident of State of Rajasthan. iii) Whose age does not exceed 55 years.

Women Entrepreneurs: Projects set up by Women Entrepreneur(s) having 100% promoter share.


A) Scheduled Caste /Scheduled Tribes, Physical disabled persons and Women Entrepreneurs :

Loans from Rs. 2000/- to Rs. 5.00 lacs



B) Ex- Convicts:

Loans from Rs. 2000/- to Rs. 50,000/-.

5. Sanctioning Authority:

The loan would be sanctioned by the sanctioning authorities within their respective sanctioning powers subject to prescribed guidelines from time to time.

6. Security:

Scheduled Caste/Scheduled Tribes and Physical disabled persons : A) First charge on the existing, primary and proposed

fixed assets of the concern.

B) In case of transport loan hypothecation of vehicle.

Ex- Convicts: Loan shall be secured by equitable mortgage/ hypothecation of immovable and movable property (including raw material, finished goods, work-in-progress, receivables, stores, consumables etc.) of the industrial concerns. Women Entrepreneurs: Mortgage /hypothecation of land, building, P&M, Furniture & Fixture, Misc. Fixed Assets etc.

7. ADDITIONAL SECURITY / COLLATERAL SECURITY :-

SCHEDULED CASTE / SCHEDULED TRIBES : I) Collateral security of immovable property of urban

area either of his own immovable property or of the guarantor having minimum value of assets not less than the amount of loan sanctioned shall be obtained.

II) Personal guarantee of the person having immovable

property in the State of Rajasthan of the value equivalent of the loan amount if the collateral security of the own property of borrower is offered. In case of the collateral security belongs to the person other than the borrower no additional personal guarantee would be insisted upon.



III) In case of rented premises for installation of Plant & Machinery, collateral security equivalent to the loan sanctioned amount shall be furnished.

Physical disabled persons: Collateral Security of a person having immovable property in the State of Rajasthan, if loan has been desired against hypothecation of machinery to be installed in rented premises. Ex- Convicts: Proposal for sanctioning of loan in case of units to be set up in rented accommodation shall be considered only by the respective sanctioning authority to the extent of their delegated powers for sanction of loan with condition that collateral security equal to the loan amount shall be obtained. However, while considering such cases, sanctioning authority has to convince himself that such proposal for setting up a unit in rented accommodation would be cost saving and in the conformity with usual norms of appraisal. Women Entrepreneurs: The loan shall be secured by Personal Guarantee of the promoter and her husband, any other type of security, if required by the sanctioning Authority.

8. FINANCIAL PARAMETERS : A) MARGIN OF SECURITY :

Scheduled Caste/Scheduled Tribes: Margin as per usual norms would be maintained on the proposed investment in land, building and plant & machinery. Provided if the SC/ST entrepreneur so desires than the Corporation would be agreeable to reduce the margin to 5% and consider financial assistance on investment in land, building & plant and machinery at 5% margin provided collateral security of immovable property equivalent to the difference in value between the normal margin and reduced margin is offered by the entrepreneur. Normal Margin is 30% on land, building, P&M, MFA.



Provided however that the above relaxation in margin would not be admissible in case of transport loans. Physical disabled persons: On new building, Plant & Machinery : 10% Ex- Convicts: Usual margin of security say 30%. Women Entrepreneurs: 30% on land, building P&M, MFA 50% on F&F.

B) Promoter’s Contribution(Minimum): 33% C) Debt Equity Ratio : 2:1

(Maximum) D) DSCR(Minimum) : 1.70:1

9. INTEREST : Scheduled Caste/Scheduled Tribes and Physical disabled persons : For loan upto Rs. 5.00 lacs, 2% less than the general rate applicable to the different schemes. Ex- Convicts: The rate will be prevailing rate of interest applicable from time to time. Women Entrepreneurs: Loan upto Rs. 5.00 lacs, 1% lower to prevailing rate of nterest as applicable from time to time for SME Sector. i

10. LIQUIDATED DAMAGES :

As applicable from time to time depending upon the amount of loan as per the policy of the Corporation.

11. PERIOD OF REPAYMENT :

Scheduled Caste/Scheduled Tribes and Physical disabled persons & Ex - convicts: Not more than 10 years including moratorium period upto 18 months. Women Entrepreneurs: Maximum 10 years including moratorium of 3 years.



12. OTHER PARAMETERS : Processing Charges: Processing charges will be charged as per prevailing norms.

13. APPLICATION FEE :

Scheduled Caste/Scheduled Tribes/ Physical disabled person/ Women Entrepreneur : The concession of 50% in application fee would also be granted in loan cases upto Rs. 5.00 lacs. Ex- Convicts: Application fee shall be charged as per prevailing norms.

NOTES : 1. Other norms/parameters of appraisal shall be applicable

as contained in PG and amended from time to time.

2. Collateral security shall be obtained as per the norms circulated vide circular No.1282 dt. 16.09.2009 & no. 1355 dt. 23.11.2010 in case of industrial units proposed to be set on converted land.

3. While sanctioning of loan at field level it should be ensured by the sanctioning authority that if the amount is more than the MRV of existing and proposed land & building, additional collateral security is invariably be obtained as per prevailing guidlelines circulated vide P&G circular no.1334 dt. 06.07.2010.

4. In case the unit is proposed to be set up in rented premises collateral security of immovable property located in urban area shall be obtained as per norms of the Corporation.

5. Any other type of security, if required, by the sanctioning authority.

RFC/P&G/1405

RAJASTHAN FINANCIAL CORPORATION (Credit Policy & Monitoring Divison)

Udyog Bhwan, Tilak Marg,

Jaipur-302005.

Ref.No.RFC/F/ LA-16(1)/03 Dated : 19.12.2011

:PG CIRCULAR: (LA No.585)

Reg:-Delegation of sanctioning powers in cases of

Industrial Units to be set-up on converted land in isolated Areas.

Guidelines with regard to delegation of sanctioning powers in cases relating to industrial units to be set up on converted land in isolated areas were circulated vide PG circular No.1394 dated 01.09.2011. The definition of undeveloped areas was reviewed by the Board of Directors in its meeting held on 1st Dec.2011 wherein the Board decided to further simplify the definition of “undeveloped area". Accordingly the category no. 3 of undeveloped areas has been deleted and the undeveloped area has been re-classified in the following two categories:- S. No.

Category Sanctioning authority

1. Undeveloped Areas: B(i):Areas converted for industrial use and that which are within close enough vicinity of the developed industrial areas for the entrepreneurs to be able to take advantage of the infrastructure, like, roads, transports and other facilities, available on account of the industrial area.

As per usual delegation of powers for sanction of loans contained in circular No.P&G 1374 dated 08.03.2011. Note: With this, item No.8 of the said circular stands deleted.

2 B(ii): Areas converted for industrial use where the industry is sought to be

Such loan applications will be forwarded to Head Office and will be

set up because of the availability of raw material in close vicinity like mining units, agriculture produce processing units etc and all other units which are not covered under category–B(i).

sanctioned by the respective sanctioning authorities at Head Office as per delegation of powers contained in Circular No.P&G 1374 dated 08.03.2011.

All concerned are advised to take a note of above.


Chairman & Managing Director Copy to:

1. All BOs/ROs/SOs 2. DGM (A&I) 3. Standard circulation at H.O.

RFC/P&G/1406

RAJASTHAN FINANCIAL CORPORATION Udyog Bhawan, Tilak Marg, C-Scheme,

JAIPUR-302005 Ref: No. RFC/LA-12(78)/CPM/5 DATED : 22.12.2011

CIRCULAR (LA : 586)

Considering the requirements of non-assisted units, it has been decided to launch a scheme namely “Flexi Loan Scheme for new borrowers” similar to Flexi Loan scheme for existing Good Borrowers. The scheme was placed before the PC&CC in its meeting held on 07.12.2011 and the PC&CC after discussions approved the scheme, copy of the scheme is enclosed. All concerned are directed to make vide publicity of the scheme and to identify all such non-assisted units with a view to receive maximum number of applications for business under this scheme.

Sd/- ( Yaduvendra Mathur )

CHAIRMAN & MANAGING DIRECTOR

Copy to: 1. All Branch Offices/ Sub Offices. 2. All DGMs (Operations). 3. Standard Circulation at HO.

RAJASTHAN FINANCIAL CORPORATION FLEXI LOAN SCHEME FOR NEW BORROWERS

1. INTRODUCTION :

RFC is providing financial assistance to its good borrowers. The Corporation has already taken steps to provide financial assistance to good borrowers on liberal terms. In the same series, it is proposed to have a unique scheme for the non assisted units. Under this scheme where Corporation shall provide financial assistance totally flexi in nature i.e. the loan sanctioned can be withdrawn and deposited within LDR any number of times. The Corporation may provide financial assistance to meet immediate requirement of funds either for acquisition of fixed assets, working capital or for both without going into detailed appraisal. This would facilitate the entrepreneurs to save the higher cost of funds which would otherwise to be borrowed from private financier. The brief features of the scheme are as under-

2. OBJECT Providing financial assistance to the non assisted units to meet out their immediate requirement either for working capital need or to acquire fixed assets or both as and when required

3. ELIGIBILITY CRITERIA i. The unit should have proven track records with

regard to repayment with financial institution/bank in past if assisted by them and there should not be any adverse reporting against the unit from FIs / Bank.

ii. The account of the unit should have been

classified as standard assets in the last 3 financial years if assisted by FIs / Banks , except SIDBI.

iii. The borrower should not have availed any

benefit by way of waiver of interest/penal interest or grant of reschedulement in the last 3 financial years and during current financial year if assisted by FIs / banks

iv. The unit should be in production during the

last four preceding years on date to date

basis and working results and financial performance of the unit should be satisfactory in the last 3 financial years.

v. There should not be any overdues of FIs /

Banks on the date of loan applying for loan.

vi. Cases financed by SIDBI shall not be eligible

for finance under this Scheme.

4. ELIGIBLE AMOUNT i. The minimum and maximum loan under the scheme

shall be Rs.10.00 lacs and Rs.100.00 lacs respectively however at the time of renewal after three years the maximum loan limit may be increased subject to fulfillment of other eligibility criteria upto Rs.200 lacs.

5. SECURITIES & SECURITY DEBT RATIO

i. The loan shall be secured by 1st charge on existing and proposed assets of unit.

ii. Personal guarantee of promoter/ partner/

director of the unit/ company. The overall security debt ratio shall be kept 2:1. For the purpose of calculation of security, MRV of land, building and least of MRV or book value of plant and machinery and MFA which ever is less shall be considered. The loan shall however be restricted to MRV of Land & Building.

6. APPLICATION FEE The application fee shall be as per existing norms.

7. INTEREST RATE The rate of interest shall the prevailing rate of interest of the Corporation for SME sector and which shall be payable on quarterly basis.

8. LIQUIDATED DAMAGES No default in interest & principal shall be allowed, however, in case of default, following action shall be initiated : a) Action u/s 138(b) of NI Act.

b) The Corporation shall charge liquidated damages @ 2% p.a. on the amount in default for the period of default from day one.

9. OPTION FOR CALL BACK

In case the loanee party makes default in making payment of interest on time, the Corporation shall have right to call back the disbursed loan. Incase of two consequent default the possession of the unit may be taken.

10. PROCESSING CHARGES Processing charges @ 0.25% shall be charged.

11. APPRAISAL NORMS The system of getting details about promotors, concern and sister concerns, verification of antecedents, obtaining CIBIL reports, and bank credit reports shall however be followed as in general loan schemes. The bank statements for last three years shall also be obtained and analysed.

12. MARGIN AND PROMOTERS' CONTRIBUTION No additional margin and promoters contribution will be required to be brought in.

13. REPAYMENT PERIOD The condition of repayment shall be as under : i. Flexi loan is sanctioned for 3 years (from

the date of 1st disbursement of loan) which can be renewed on the request of the party for next 3 years on the terms and conditions of interest rate applicable at that time. The loanee party shall however, inform 3 months prior to 3 years period for renewal of Flexi loan. The concern shall furnish one blank PDC for repayment of loan and 12 PDC for payment of interest of loan for each quarter.

ii. In case the loan limit is not renewed after

three years, the party will have the option to repay the outstanding loan either in one installment or maximum in twelve equated monthly installments (EMI), subject to charging of prevailing rate of interest at that time or documented rate of interest, whichever is higher.

iii. The concern may pre-pay without attracting pre payment premium.

iv. The concern shall make the payment of interest

on 1st day of each quarter i.e. March, June, September and December separately.

RENEWAL CHARGES: 14. The Corporation will charge 0.25% at the time of renewal of loan after 3 years.

15. MORATORIUM PERIOD No moratorium period for payment of principal as the same is for 3 years on renewal basis.

16. SANCTIONING AUTHORITY The sanctioning authority shall be CMD on recommendation of the Committee.

17. DISBURSEMENT The 1st disbursement of sanctioned amount should be availed within two months from the date of communication of sanction. The party may, however, avail the balance sanctioned amount as per its convenience.

18. MODALITIES FOR OPERATING FLEXI LOAN a) The loanee can approach the concerned branch

office of the Corporation for drawing any amount within the overall sanctioned flexi limit , in multiple of Rs.50000/- by making normal request in writing to the BM.

b) The loanee party can however, draw the amount

maximum four times a month.

***

RFC/P&G 1407

RAJASTHAN FINANCIAL CORPORATION (Credit Policy & Monitoring)


Jaipur-302 005 Ref. RFC/F/LA-12(65)/10 Dated : 02.01.2012

:PG CIRCULAR: (LA No. 587)

Reg. : Top-up loan scheme for existing borrowers of MSME.

The aforesaid loan scheme was introduced vide PG circular No. 1401 dated 23.11.2011. A note regarding top up loan scheme for existing borrowers of MSME was placed before the Board in its meeting held on 01.12.2011 for ex-post facto approval. The Board has desired to further simply the scheme, so as to cover those cases also in which only one reschedulement has been allowed and the loanee is paying strictly as per the reschedulement. The Board further desired to enhance the eligible loan amount on the basis of present MRV. The proposed modification in the scheme as per observations of Board was placed before PC&CC in its meeting held on 19.12.2011 and decided to make following modification in the scheme :- S.No. Particulars Existing

guidelines Modified guidelines

1 Eligibility criteria No. 4

There should not be any reschedulement/ waivement (including penal interest) / settlement in the loan account of the unit and its sister concern during last 3 years.

There should not be more than one reschedulement, waivement (including penal interest, settlement in the loan account of the unit and its sister concerned during the last three financial years. However, those cases in which only one reschedulement has been allowed and who have paid four installments of principal as per revised schedule, the amount eligible for computation of loan under top-up scheme should be the amount paid by the applicant after the

reschedulement. In such cases, the criteria No (iii) i.e. standard account since inception shall not be applicable.

2 Amount of loan A higher loan amount (in excess of principal repaid) maximum upto 60% of MRV of security (land and building and collateral) minus existing outstanding may be admissible. However, this additional loan over and above principal repaid shall not exceed 25% of the principal sum repaid.

A higher loan amount (in excess of principal repaid) maximum upto 60% of MRV of security (land and building and collateral) minus existing outstanding may be admissible.

All concerned are advised to take a note of above and ensure compliance of the same.


Chairman & Managing Director Copy to : 1. All BOs/ROs/SOs. 2. DGM (A&I) 3. Standard circulation at HO.

RFC/P&G 1408

RAJASTHAN FINANCIAL CORPORATION (Credit Policy & Monitoring)


Jaipur-302 005 Ref. RFC/GBD/Gen./25 Dated : 16.01.2012

CIRCULAR

Reg. : Clarification about Standard Health Category of

loan account under Good Borrowers Schemes.

Attention is invited towards one of eligibility criteria for availing loan under Good Borrowers Schemes. As per provisions the loan account of the applicant should have been classified as Standard loan account in last three preceding years. Some references have been received from the Branch offices for clarification about the date on which account should have been standard. The matter was discussed in the PC&CC meeting held on 09.01.2012 and it has been decided that the category of loan account i.e. “Standard” may be considered at the end of financial year. However, the repayment behaviour during the period should have been remained satisfactory. In adverse situations the case need to be examined on the merit and decided accordingly. Other eligibility criteria of Good Borrowers Schemes shall remain unchanged. All concerned are advised to take a note of above.


Chairman & Managing Director Copy to : 1. Standard circulation at HO. 2. All Branches/SOs/A&I offices. 3. DGM (Operations), H.O. Jaipur

RFC/P&G 1409

RAJASTHAN FINANCIAL CORPORATION (Credit Policy & Monitoring Division)


Jaipur-302 005 Ref. RFC/LA-16(1)/36 Dated : 24.01.2012

CIRCULAR (LA No.588)

Reg. : Delegation of sanctioning powers in cases of Industrial units to be set-up on converted land in isolated Areas. Attention is invited to P&G Circular No. 1405 dated 19.12.2011 on the subject cited above. The captioned matter was reviewed by the PC&CC in its meeting held on 16.01.2012. For convenience of entrepreneurs, it has been decided that loan cases of industrial units proposed to be set up on converted land in isolated areas falling under the category of B (ii) shall now be processed and considered for sanction by the concerned branches within their respective delegated sanctioning powers subject to following shall be ensured.

1. Prior approval from HO shall be obtained by sending the summarized position of the case in the enclosed proforma.

2. Cautious approach shall be adopted while processing such loan cases.

3. Collateral security of marketable & mortgageable immovable properties situated in urban areas not less than term loan amount is to be obtained.

4. Clear approach shall be ensured as per the prescribed guidelines issued by the Law Section.

Other guidelines will remain unchanged. All concerned are advised to take a note of above and ensure compliance with immediate effect.


Chairman & Managing Director Encl. As above. Copy to :

1. All BOs/SOs/A&I. 2. Standard circulation at HO.

3. All DGM (Operations)

RAJASTHAN FINANCIAL CORPORATION BRANCH OFFICE : _______________

Reg : Industrial units proposed to be set up on converted land in isolated area. Sub : Prior clearance for processing the case at Branch Level of M/s. _________________________________________ S.No. Particulars

1 Name of the concern & constitution

2 Address i) Correspondence

Address

ii) Works/Site address

3 Amount of loan applied & name of the loan scheme

4. Details of project : a) Brief introduction : b) Cost of project & Sources of finance :

(Rs. in lacs) Particulars Existing as on

_________ Proposed Total

COST OF PROJECT Land Building Plant & Machinery Misc. Fixed Assets Prel & Pre-operative Exp. Working Capital Margin Total

SOURCES OF FINANCE Own Capital Internal accruals Unsecured Loans Term loan from RFC Total 5. Details of the land of the proposed unit including size & area of land, location, clear approach etc (attach tile examination report) 6. Details of collateral security and its MRV (attach title examination report)

7. Details about the promoters : 1) Total Net worth of all the promoters :

i) Movable Assets : ________________ ii) Immovable Assets : ______________

Total : _______________

2) Details of Income tax paid by the promoters during last three assessment years :

S.No. Assessment year Income assessed Tax paid

8. Details of sister concern/unit (for preceding three years) in which the borrower is interested as Proprietor /Partner /Director :

S.No. Name of concern/sister concern

Nature of activity

Income/Sales Net profit

Cash profit

9. Repayment Behavior (If the loanee is existing borrower of the Corporation) The Corporation has considered following loan to the unit : S.No. Date of sanction Amount

sanctioned Amount disbursed

Amount overdues

Amount outstanding

10. Position of loan cases sanctioned under the above category cases :

(Rs. in lacs) No. of cases Amount

sanctioned No. of cases in default

Amount in default

Amount outstanding

11. Comments/Recommendation of Branch Manager: S.No. Particulars

Comments/Recommendation

i) On examination of title documents

ii) Comments on clear cut approach to the site

iii) Justification for considering term loan

Signature of checked by Signature of Branch Manager AM/DM concerned Date :

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