Obtain legal clearance of title both in respect of primary and
collateral security from Law Officer/BM or Legal Division.
Comply with the various terms & conditions and
specific stipulations of sanction and to raise the required capital
/ long term loans and create fixed assets as per approved scheme.
Before disbursement of any part of loan the primary
and collateral security are required to be verified by the Branch
The Corporation generally reimburses the amount incurred
on creation of fixed assets i.e. land, building & machinery.
In cases where the land has been allotted by HSIIDC/ HUDA on deferred
payment basis, on request of the parties, the Corporation considers
making direct payment of the balance amount directly to these
agencies with simultaneous execution of Mortgage Deed and Conveyance
In cases where land is allotted by HUDA/HSIIDC, the
borrower is also required to obtain permission from HUDA/HSIIDC
for mortgaging the plot in favour of the Corporation.
Release against building is made in stages depending
upon the progress of building as per approved scheme. For this
the loanee is required to submit:
Accountant’s Certificate indicating investment in building
of building account.
against building can also be released in stages on the basis of
physical verification by Corporation's officials as under:-
||Upto DPC level
to 25% of the loan against building as per sanction letter.
||Upto Roof level
of the entire building
last 25% amount against building will be released after getting
the assessment of building conducted by an Assessor on the panel
of the Corporation.
For release against plant & Machinery the loanee is required
to submit original invoices, payment receipts, bank statement
confirming realization of cheques, performance guarantee, full
and final payment receipt and no lien letter from the supplier
and Chartered Accountant’s Certificate showing the book
value of the machinery alongwith a schedule of plant & machinery
available at site. Alternatively, direct payment can be released
by the Corporation to the machinery supplier on the basis of proforma
invoice after the entrepreneur has deposited the required margin
money with the supplier and produces confirmatory letter from
the supplier that the machinery is ready for delivery. Payment
of margin money will be verified from its receipt and bank statement.
Unless the genuineness of the supplier is established Corporation
arranges transportation of machinery in the presence of Corporation's
employees for machinery involving transaction of Rs.30.00 lacs
The Corporation provides the facility of opening Letter of Credit
for import of capital equipment. The Corporation also issues Letter
of Comfort in favour of the bankers of the borrowers in cases
where L.C.is to be opened by the commercial banks. On presentation
of certified set of documents, the Corporation releases the permissible
amount to the bank for discharge of documents.
Release against self-fabricated machinery is made after
the equipment is made operational and its performance is certified
by an approved assessor/Technical Officer of the Corporation.
In order to take care of escalation in the cost of
building & machinery, the Corporation allows benefit of contingencies
as per provision made in the scheme.