SERVICES
M P Financial Corporation has been providing financial assistance to industrial
units in the state of Madhya Pradesh for the last four decades. It has been
extending wide ranging fund and non fund based services. A number of new schemes
for providing financial assistance and services to industries, professionals and
other business associates have been sucessfully introduced by the corporation.
Our fund based schemes are available for setting up business within the state of
Madhya Pradesh.
Whereas, our non fund based schemes are available throughout India.
Term loan is provided for the purpose of
creation of fixed assets(such as land, factory building,
plant and machinery, electricals etc.), mordernisation, diversification,
expansion, and/or replacement of equipments in existing units.
Finance is provided to new industrial units. It is also provided
to Hotels, Service Industries, Transportation, R & D activities.
The maximum limit of assistance to non-corporate sector is
Rs. 60.00 lacs and for corporate sector is Rs. 90.00 lacs.
Loans upto Rs. 150.00 lacs can be considered in case of units
and/or promoters with good track record, listed companies,
companies envisaging public issues.
Period of assistance depends upon merits of the case ranging
between 5-8 years.
The prevailing annual interest rate structure is as follows:
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SSI Sector
|
|
|
Upto Rs. 2.00 lacs
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12.5%
|
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Above Rs. 2.00 lacs
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15.5%
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Non SSI Sector
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16.0%
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A penalty @4% p.a. is levied in case default for the period
and amount of default.
Assistance is available for acquiring identifiable and new items
of plant & machinery, equipments etc.
It is available to industrial concerns in existance for
atleast 4 years, earning profits/declaring dividend on its share
for preceding two years and are not in default to institutions/banks
in payment of their dues dues.
Maximum amount available is 77.5% of the cost of the
machine - restricted to Rs. 90.00 lacs per proposal.
The overall debt equity ratio (including the assistance under the
scheme) should not be more than 2:1.
Assistance under this scheme is available for purchase of equipments
for the purpose of expansion, mordernisation, diversification and/or
for the replacement of the equipments. Medical equipments, energy saving
systems, vehicles and other equipments for manufacturing and service
industry are also eligible under the scheme.
This scheme is available to existing, concerns having atleast two years profitable
operations.
Upto 100% of the cost of the equipment can be financed under
the scheme with a minimum of Rs 25.00 lacs and maximum of
Rs. 90.00 lacs.
The debt equity ratio (including the assistance under the scheme) should be 1:1.
The assistance under the scheme is available for 3 to 5 years & is repayble
in monthly/quarterly equated instalments.
The rate of interest is slightly higher than the normal lending rates.
A penalty @4% p.a. is levied in case default for the period
and amount of default.
This scheme has been designed to meet the short term requirement
of funds for working capital purposes due to peak season needs
or for fulfillment of specific order/job enhancement of working
capital limits pending upto Bank etc.
It is provided to concerns which are in the profit for the last 4 years, having
working capital limits sanctioned by any other commercial
bank, having regular account with MPFC /Other financial
institution.
The minimum assistance under the scheme is Rs. 10.00 lacs and
maximum Rs. 50.00 lacs.
The debt equity ratio should not be more than 1:1 and current ratio
should not be less than 1.5:1.
Repayment should be done within 6 months.
Interest rate ranges from 17.0% to 20.0% for the scheme.
A penalty @4% p.a. is levied in case default for the period
and amount of default.
Term Loan is provided under this scheme to part finance long
term/medium term working capital requirements of the
industrial units.
It is provided to industries having last 3 years profitable operations
and proven track record with institution/bank. MPFC borrowers
whose fixed assets are mortgaged with MPFC and those who are
not MPFC borrowers but intend to offer all their existing
fixed assets by way of mortgage as primary security can also avail
assistance under the scheme.
Minimum loan of Rs. 10.00 lacs and maximum loan of Rs. 90.00 lacs may be
provided under this scheme.
Repayment should be done within 3-5 years.
The prevailing annual interest rate is16.0%.
A penalty @4% p.a. is levied in case default for the period
and amount of default.
Financial assistance under this scheme is available for purchase of
new electro medical and other equipments.
It is provided to private practioners having MBBS or BDS or physiotherapist
or equivalent qualification.
Repayment should be done within 6 years.
Term Loan is available for establishment of new hospital/nursing homes
(having minimum 10 beds). It is also available for expansion/modernization
of existing facilities.
Other details for the scheme is as per Term Loan.
Term loan is available for setting-up professional practice/consultancy
venture, for the first time or for acquiring additional equipments in
exisiting setup.
It is provided to professionals in the field of management,
accountancy, medicine, architecture, engineering etc.
The cost of project should not exceed Rs. 10.00 lacs, of which
land/building should not be over 50% of the total outlay.
Repayment should be done within 5 years.
Financial assistance is available for the purpose of providing
hire purchase loans against motor vehicles(HMVs and LMVs).Other
equipments viz. dumpers, excavators, construction and mining
equipments etc., are also covered under the scheme.
The corpus amount is provided to existing reputed finance companies
who are engaged in this business.
Under the scheme, the assisted finance company enters into
a Memorandum of Understanding (MOU) with MPFC. Subsequently, it
gets individual agreement executed between the vehicle operator and
MPFC, whenever the corpus fund is used.
The corpus fund assistance is a one time assistance and needs
to be utilised within a specified period. All risk of finance
under the scheme are to be undertaken by such assisted
company.
Interest rate ranges from 17.0% to20.0% for the scheme.
A penalty @4% p.a. is levied in case default for the period
and amount of default.
Assistance under this scheme is available for the purpose of purchase
of further machineries and extension of factory building for the
existing line of activity.
It is provided only to MPFC's existing profit making borrowers with
good track record of repayment(at least thee due installments of loan
should have been paid in time).
The limit of assistance is upto the extent of loan already repaid by them
till the date of application. Minimum loan is Rs. 5.00 lacs and maximum loan
is Rs. 50.00 lacs.
Repayment should be done within 5 years.
The prevailing annual interest rate structure is as follows:
|
SSI Sector
|
15.5%
|
|
Non SSI Sector
|
16.0%
|
A penalty @4% p.a. is levied in case default for the period
and amount of default.
With a view to tide over the problems faced by the
entrepreneurs/industrialists due to frequent power
failures/cuts, a scheme for financing D G Sets has been introduced.
Assistance under this scheme is provided to all existing
industrial units. However, assistance to projects under
implementation may be considered on merits.
Upto 90% (60% for second hand) of the cost of D G Set (invoice value)
subject to maximum of Rs.50.00 lacs loan can be considered under the
Scheme.
Repayment should be done within 5 years.
The prevailing annual interest rate structure is as follows:
|
SSI Sector
|
15.5%
|
|
Non SSI Sector
|
16.0%
|
A penalty @4% p.a. is levied in case default for the period
and amount of default.
Assistance is available for the purpose of
- meeting capital expenditure on marketing campaign
- acquiring mobile sales vans
- setting up/renovation of showroom, warehouse, marketing office for industrial
concerns
- acquiring ISI, ISO and/or other certification
- developing infrastructure like setting-up of permanent exhibition
centres, industrial complex etc.
It is provided to existing SSI/MSI profit making industries with good
track record with financial institutions/Banks.
Minimum amount of assistance under the scheme is
Rs. 10.00 lacs with a maximum of Rs. 50.00 lacs.
Assistance under this scheme is available for 2-5 years.
Under the scheme, MPFC participates in the equity of any
limited company - making public issue of equity shares, either
in the promoter's quota or on firm allotment basis against
the reservation for financial institutions.
A maximum of Rs. 50.00 lacs may be contributed, subject to
maximum of 10% of total paid-up capital of the company, however
in suitable cases, the limit of 10% can be increased upto 25%.
The amount under the scheme is released only after raising the
promoters contribution towards the share capital.
MPFC provides soft loan to deserving entrepreneurs (on
selective basis) either under the seed capital scheme of
IDBI/SIDBI or out of special Capital of MPFC.
Assistance under the scheme is available for procurement of equipments,
or working capital, or both.
It is granted to artisans, village and cottage industries,
and small scale industries in the tiny sector (located in areas
other than metropolitan areas), involving utilisation of locally
available natural resources and/or human skills.
Loan upto a maximum of Rs. 2.00 lacs in granted under the scheme.
Repayment should be done within 10 years, with an initial moratorium of 12-18 months (both for interest
and principal).
No upfront fee is levied under the scheme.
In deserving cases, the purchaser of MPFC assisted
sick/closed unit is allowed to pay purchase consideration
partly on finalisation of negotiation and the balance in
installments, over a period not exceeding 3 years.
The deferred payment carries interest at the normal lending rate
of the corporation.
MPFC also considers term loan assistance
for restarting the same unit or diversifying into some new
product line on the merits of the proposal.
The scheme is for providing financial assistance for construction of commercial complex including show rooms and sales outlets.
Loan will be given for purchase of land and construction of commercial complex within the State of M.P.
Sale of shops, show room or any portion of complex shall be permissible with the prior approval of the Corporation. The proceeds shall be desposited in the loan account of the borrower as per terms of agreement.
The minimum cost of project should be Rs 10.00 lacs and a maximum of Rs. 240.00 lacs.
The promotor is required to contribute 50% of total cost of project. In case of companies, net worth should not exceed Rs. 10.00 Crores.
MPFC will hold the first charge by mortgaging assets i.e. land & building, shop premises, saleable part of commercial complex.
The loan should be repaid in 5 years, maximum 2 years moratorium.
Interest shall be 16.0% p.a. A penalty @4% p.a. is levied in case default for the period and amount of default.
The scheme is for providing financial assistance in the form of small loans
to Service Units or Small Industrial Establishments.
Finance upto Rs.25.00 lacs for the various fund
based schemes, will be made available to entrepreneurs in 15
DAYS, else the application fee will be REFUNDED.
Applicable interest rate is 16.0%
This scheme is with a view to promote Information Technology projects in Madhya Pradesh.
The promoters of the proposed project must be technically or professionally qualified. The project must be under SSI or MSI and promoted under the constitution of a Public Limited Company. It should be an eligible activity within the overall provisions of the SFCs Act 1951.
The support shall be in the form of either or both of the following components:
- In the form of Equity Assistance to support promoters' contribution.
- In the form of Term Loan.
The maximum amount of support shall be Rs. 240.00 lacs in the case of promoters with proven track record, or Rs. 150.00 lacs in the case of first generation entrepreneurs. The assistance shall necessarily have a part in the form of loan component.
The loan should be repaid in 8 years, maximum 3 years moratorium.
The loan component shall carry prevailing interest rate of the Corporation.
The exclusive promoters' contribution shall not be less than 20% of the total project cost.
- The loan component shall be secured by way of first charge on the fixed assets of the company.
- The Corporation may insist for any additional security depending upon the merit of the case.
- The buyback agreement shall also have a recourse on the fixed assets of the company.
- The promoters and any other person concerned shall also offer personal guarantee for the loan as well as equity component.
- The shareholdings of the promoters shall remain pledged with Corporation.
The procedure for availing assistance is as follows:
- The promoters shall furnish a brief profile of the project as well as that of promoters.
- The specialised screening committee will examine the profile, which may include a presentation of the project by the promoters.
- The Corporation shall accept the proposal for detailed appraisal, once it is cleared by the above mentioned committee.
- The Corporation shall decide about the proposal considering all the aspects of the case through a delegated authority of the sanction.
MPFC has been in project financing for 4 decades
and has developed relevant expertise backed with rich
database to take-up project appraisal of public issue
proposals.
Underwriting of shares and debentures for public/rights issue
is under taken on the strength of the company, prospects of
the issue and the prevailing state of the capital market.
The Corporation also assists in arranging underwriting
commitments both from institutional and private underwriters.
Issue management services as provided by MPFC are:
acting as lead managers, co-lead managers, advisors to issue etc.
MPFC also assists in public issue subscription through its wide network
of zonal and branch offices spread over the state and of brokers,
sub-brokers and other market intermediaries.
Project report are prepared based on latest information of technology and
market survey of products.
Reports are prepared for technology oriented projects, and for innovative items.
Services for credit syndication with other financial
institutions/banks/finance companies in respect of term
loans/lease finance/working capital etc. are provided.
MPFC provides corporate advisory services including
management systems, project services, firming consortium tie
ups, technical assistance etc.
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