Tuesday, June 21, 2011

EXIM BANK OFFERS FOREIGN CURRENCY TERM LOAN FOR SME INDUSTIRIES

 
EXIM BANK OFFERS FOREIGN CURRENCY TERM LOAN FOR SME INDUSTIRIES
 
EXIM Bank is offering Foreign Currency Term loans toexport oriented SMEs in the states of U.P, Chattisgarh, Uttarakhand, Jharkhand, Rajasthan, M.P, Orissa and Assam under ADB line(Tenor:5 years to 7 years, with 2 years moratorium).This loan can not be given for working capital purpose. 
 
1)For this, the comapny should have an export sales of 10% of total sales or Rs. 5 crores, whichever is lower. The company should be a profit making company for the last 3 years.
 
2) Further, the Gross investment in Plant & Machinery should be less than Rs. 10 crores to qualify under SME (SSI unit) (If this is slightly higher than Rs. 10 crores, some items like DG sets, Dies, other Tools & fixtures can be removed, as per MSME Act Definition).
 
This Foreign Currency Term loan can be utilised even for Rupee Expenditure. The Rate of Interest for this Foreign currency Term loan will be around LIBOR (6 Months) + 450 BPS (Roughly around 0.50+4.50 = 5%), as against the current Rupee Term loan Interest of around 12%.
 

1 comment:

  1. Thank you for sharing the above information. For more details on foreign currency term loan visit https://balajicredits.com/

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