SERVICES
M P Financial Corporation has been providing financial
assistance to industrial units in the state of Madhya Pradesh for the
last five 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
industrial/business ventures within the state of Madhya Pradesh.
Whereas, our non fund based schemes are available throughout India.
Interest Rate Structure
The prevailing interest rate structure is as follows (with effect from 31st March 2019):
Term Loan Schemes
MSME Sector* |
Grosst
Rate |
Rebate |
Net
Rate |
| Upto Rs. 0.50 lacs |
10.25% |
- |
10.25% |
Above Rs. 0.50 lacs
upto Rs. 2.00 lacs |
10.25% |
- |
10.25% |
Above Rs. 2.00 lacs
upto Rs. 25.00 lacs |
15.25% |
1.00% |
14.25% |
Above Rs. 25.00 lacs
upto Rs. 100.00 lacs |
15.25% |
1.00% |
14.25% |
| Above Rs. 100.00 lacs |
15.25% |
1.00% |
14.25% |
| Other Schemes @ |
| a.Real Estate |
| - Commercial |
17.25% |
1.00% |
16.25% |
| - Social |
15.25% |
1.00% |
14.25% |
| b.Working Capital Medium Term Loan |
15.25% |
1.00% |
14.25% |
| c.Short Term Loan |
15.25% |
1.00% |
14.25% |
| d.Small Loan Scheme |
15.25% |
1.00% |
14.25% |
| e.Scheme for Professionals |
15.25% |
1.00% |
14.25% |
| f.Scheme for Misc. Fixed Assets |
15.25% |
1.00% |
14.25% |
| g.Quick Finance Scheme |
14.25% |
- |
14.25% |
| h.Business Loan Scheme |
15.25% |
1.00 |
14.25% |
* Including Hotels, Hospitals and Nursing Homes, Small loan Scheme,Scheme for Professionals & Scheme for Misc. Fixed Assets.
@ Interest rate shall be applicable irrespective of the loan amount.
# The interest rate under all the schemes shall have an annual interest rate reset clause to be applicable on 1st April every year during the currency of the loan.
Note:Commercial Real Estate include Development of Residential Colonies, Commercial Complexes, Multiplexes, Shopping Malls etc.
Penal Interest
A penalty @2% per annum shall be levied for the amount of default and period thereof. The interest shall be payable quarterly.
Term loan is provided for the purpose
of creation of fixed assets(such as land, factory building, plant and
machinery, electricals etc.), for setting up of new unit and for
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. 200.00
lacs and for corporate sector it is Rs. 500.00 lacs.
Period of assistance depends upon merits of the case ranging between
5-8 years.
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. 500.00 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 instalments.
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. 2.00 lacs and maximum
Rs. 100.00 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 12 months.
Application Form
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. 2.50 lacs and maximum loan of Rs. 500.00 lacs may
be provided under this scheme.
Repayment should be done within 3-5 years.
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.
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. 2.50 lacs and
maximum loan is Rs. 75.00 lacs.
Repayment should be done within 5 years.
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 rate of interest applicable is same as the
normal lending rates.
A penalty @2% 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.
Assistance under this scheme is available for acquisition of miscellaneous fixed assets (MFAs) as mentioned hereunder to meet:-
- the cost of purchase of vehicles in the name of the company
- the cost of office automation equipments
- the cost of construction/ acquisition of the office premises/guest house for the company
Assistance shall be provided to existing assisted concerns/companies who have:-
- availed minimum Rs.200 lacs from the Corporation.
- repaid atleast 25% of the total loan disbursed to the them.
- earned profits for last two years and having positive networth.
- good track record with the Corporation.
The minimum loan amount under this scheme would be Rs. 5.00 lacs and maximum would be Rs. 50.00 lacs. The loan shall be repayable in 3 to 8 years.
Any medical professional is eligible for financial assistance under this scheme who holds minimum qualification of MBBS/BDS.
Financial assistance shall be considered for the following purposes to meet:-
- cost to purchase premises/chamber/flat to set up clinics/consultation chambers, and/or
- cost of medical equipments, infrastructure/furnishing, computers, office automation system, ambulance, car/van, interior decoration etc.
The loan shall repayable within 2 to 6 years.
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.
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.
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, including a maximum of 2 years
moratorium.
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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