Loan Assistance to Entrepreneurs in Setting Up in Industrial Units in Goa

The EDC Ltd is offering financial assistance to entrepreneurs for setting up eligible industrial projects by acquiring fixed assets. These assets may be land, building, industrial plant with machinery, and other assets. EDC Goa is extending project finance for the industry.

Eligibility for asking for a Loan: 

All these quick loan-seeking units must be from micro, small, medium, or large sectors, including the service sector. The loan sought should be for expansion, diversification, renovation, or for modernization of the unit. 

Financial assistance is offered to the tourism sector, health care, renewable energy sector, energy-saving systems, industrial activities, barges, and commercial activities. 

The applicants must have fair financial dealing in the past with fair repayment history with banks and financial institutions. 

The loan amount should be utilized for the purpose of acquiring fixed assets, plants, and machinery which should not be more than 18 months old.

The property to be acquired has to be mortgaged and should not be leased out. Such property cannot be leased in the future without the permission of the Corporation. 

The applicant must provide all required approvals and should agree to a mortgage on the property. 

The finance is available for projects in the state of Goa.

Details of loans: 

The applicant is eligible for a maximum loan of Rs. 400 lakh for proprietary concerns, Rs. 700 lakhs for partnership firms and up to Rs. 1500 lakhs for corporate bodies. 

This sanction of loan assistance will depend on providing adequate security by the applicant. The technical feasibility will also be considered with its financial viability. All these will ascertain the actual amount of loan amount to be sanctioned to the applicant. 

The debt Equity ratio will be 3:1 for loans up to 50 lakhs and 2:1 for loans more than 50 lakhs. The minimum margin on the primary security shall be 25%. The security for the loan will be as per the norms. 

The processing fees will be 1% plus GST. The interest rebate for women rate will be between 9.5% to 12.5%, depending upon the loan amount and the credit rating of the borrower.

The loan must be repaid within 8 years. A 2 year moratorium period is allowed. 

The borrower is also eligible for an interest rebate. Interest rebate of 2% for women applicants, 2% for Goan entrepreneurs, and 5% for units set up in backward talukas is provided by the Government who are availing of a quick loan in GOA from the Corporation.