1. Obtain legal clearance of title both in respect of primary and collateral security from legal division.

2. Comply with the various terms & conditions and specific stipulations of sanction and to raise the required capital / long terms loans and create fixed assets.

3. Before disbursement of any part of loan the primary and collateral security alongwith means of the promoters are required to be verified by the Branch Manager.

4. 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 HSIDC / HUDA on deferred payment basis,the Corporation considers making direct payment of the balance amount directly to these agencies with simultaneous execution of mortgage deed and conveyance deed. The borrower is required to obtain permission from HUDA/HSIDC for mortgaging the plot in favour of the corporation.

5. 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 :

a) Chartered Accountant Certificate indicating investment in building account.

b) Certificate from Assessor on panel of HFC with regard to the value of building. Loan against building can also be released in stages on the basis of physical verification by Corporation’s officials as under :

The last 25% amount against building will be generally released after getting the assessment of building conducted by an Assessor on the panel of the Corporation.

6. For release against plant & machinery the loanee is required to submit original invoices, payment receipts, bank statement confirming realisation of cheques, performance guarantee and full and final payment receipt form the supplier alongwith Chartered Accountant 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 (maximum of three proforma invoices) after the entrepreneur has deposited the required margin money with the supplier and produces confirmatory letter that the machinery is ready for delivery unless the genuineness of the supplier is established, Corporation arranges transportation of machinery in the presence of Corporation's employees.

7. 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.  

8. Release upto 75% against self – fabricated machinery is made on the basis of Chartered Accountant Certificate and assessment by an approved assessor of the Corporation and balance 25% is released after the equipment is operational and its performance is certified by an approved assessor 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.