Assistance by MPFC
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FUND BASED ASSISTANCE FUND BASED SCHEMES
NON FUND BASED ACTIVITIES NON FUND BASED SCHEMES











FUND BASED ASSISTANCE FUND BASED SCHEMES
Normal Term Loan Assistance Term Loan
Equipment Finance Scheme Equipment Finance
Asset Credit Scheme Asset Credit
Short Term Loan Scheme Short Term Loan
Working Capital Medium Term Loan Working Capital
Scheme for Electro-Medical Equipment Electro-Medical Equip.
Scheme for Hospitals/Nursing Homes Hospital Finance
Scheme for Qualified Professionals Finance for Professionals
Hire purchase Portfolio Management HP Portfolio Management
Scheme of Replenishment of Term loan Loan Replenishment
Scheme for Quick Finance for D G Sets DG Set Finance
Scheme of Finance for Marketing Activities Finance for Mrkt Activities
Scheme for financing Miscellaneous Fixed Assets Scheme for financing Miscellaneous Fixed Assets
Scheme for Medical Professionals Scheme for Medical Professionals
Composite Loan Scheme Composite Loan
Commercial Complex Commercial Complex
Loan Application Forms Loan Application Forms

NON FUND BASED ACTIVITIES NON FUND BASED SCHEMES
Appraisal for public issues Public Issue Appraisal
Credit Syndication Credit Syndication
Corporate Advisory Services Corporate Advisory Services
Training of MBA Students Training of MBA Students

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 7th January 2015):
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
12.75% - 12.75%
Above Rs. 25.00 lacs
upto Rs. 100.00 lacs
12.75% - 12.75%
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 12.75% - 12.75%
e.Scheme for Professionals 12.75% - 12.75%
f.Scheme for Misc. Fixed Assets 12.75% - 12.75%
g.Quick Finance Scheme 13.75% - 13.75%
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.

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TERM LOAN

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.

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EQUIPMENT FINANCE

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.

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ASSET CREDIT

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.

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SHORT TERM LOAN

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

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WORKING CAPITAL

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.

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ELECTRO-MEDICAL EQUIPMENTS

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.

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HOSPITAL FINANCE

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.

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FINANCE FOR PROFESSIONALS

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.

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H P PORTFOLIO MANAGEMENT


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.

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LOAN REPLENISHMENT

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.

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D G SET FINANCE

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.

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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.

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FINANCE FOR MARKETING ACTIVITIES

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.

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SCHEME FOR FINANCING MISCELLANEOUS FIXED ASSETS

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.

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SCHEME FOR MEDICAL PROFESSIONALS

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.

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COMPOSITE LOAN

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.

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COMMERCIAL COMPLEX

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.

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LOAN APPLICATION FORMS



CREDIT SYNDICATION

Services for credit syndication with other financial institutions/banks/finance companies in respect of term loans/lease finance/working capital etc. are provided.

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CORPORATE ADVISORY SERVICES


MPFC provides corporate advisory services including management systems, project services, firming consortium tie ups, technical assistance etc.


TRAINING OF FINANCE STUDENTS


Training and counseling services are provided to the students of MBA by helping them in choosing the topics, providing training on project appraisal and other functions of the Corporation, report writing skills etc. Corporation will select and attach small group of students to resource persons at Head Office and Branches. Duration of the programme will be 4 to 8 weeks and the programme will start in winter / summer break of insitutions every year. Corporation has helped in training / project work to large number of students over the years who are immensely satisfied with these services. Candidates may download Application Form : here

For further details, please contact 'Information Technology Department' at HEAD OFFICE


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