Under The TUFS
under the TUFS will be provided on the following terms and
of loan :
minimum or maximum limit
of 20% of the project cost.
of 1.5 : 1
of interest :
Rupee loan :
under TUFS shall carry interest at normal applicable
rates of the lending institutions prevailing at the time
of sanction/execution of loan documents. Ministry of
Textiles, Govt. of India will reimburse interest to the
extent of 5% p.a. which would be made available to
borrowers availing of assistance under TUFS. Interest
reimbursement as and when received from the Govt. would
be passed on to the Borrower by IFCI.
Foreign Currency loan :
applicable to the normal FCL. However, Ministry of
Textiles, Govt. of India, would provide a cover for
exchange fluctuations not exceeding 5% p.a.
of Interest Reimbursement :
reimbursement of 5% as also cover for exchange fluctuation not
exceeding 5% p.a. will be available during the period of loan as
specified in the Letter of Intent or as may be specified in the
loan document. In case of subsequent extension of the repayment
period, reimbursement towards interest/exchange fluctuation will
not be available for the extended period.
of the loan amount plus tax, payable at the time of execution of
of loan :
be decided on the basis of projected cash flow. However, the
repayment period, including the moratorium, shall not exceed 8
charge on the entire fixed assets of the borrowing
company with a minimum FACR of 1.5 besides the
personal/corporate guarantee of promoters/group and
pledge of promoters’ shareholdings, as may be decided
on the merits of the case.
applicable, except in case of defaults.
For Assistance Under TUFS
Detailed project report :
mills are expected to prepare detailed project report, quantify
the physical and financial requirements of the scheme including
margin money for additional working capital and also bring out
clearly the specific technological improvements in crucial areas
of operations with their impact on productivity and profitability.
As in part IV of Govt. resolution, dated 24.3..99
Working Capital Requirement :
in part V of Govt. resolution, dated 24.3.99
applicant companies may submit the loan application in
the prescribed format along with Detailed project report
(DPR) to IFCI at its Head Office or any of the Regional
Offices. IFCI will process the application/ carry out
appraisal for assessing the viability including track
record of the promoters and existence of prudent
systems and procedures including corporate governance.
efforts will be made to process the application and
sanction assistance on merits to deserving concerns
within two months from the date of receipt of complete
application with full information and DPR.