Maximum Loan : 1000 Crore Plus
We offer consultancy services in following areas :
1. Personal Loans upto Rs. 25.0 Lacs.
2. Education Loan as per eligibility.
3. PMEGP Loan under Govt. Scheme.
4. Mudra and other loans under Govt. Schemes
5. Collateral Free Loans upto Rs. 2.0 Crores.
6. MSME Loans upto Rs. 50.0 Crores.
7. Auto Loans / Vehicle Loans / Car Loans.
8. Home Loans upto 20.0 Crores.
9. Loan Against Property.
10. Builder Loan upto 1000 Crores plus.
11. Machinery Loans of Rs. 100 Crores plus.
12. Project Loans of Rs. 1000.0 Crores and more.
13. All Types of Consultancy regarding Credit Requirements.
14. We also can help you in settlement of your NPAs (OTS).
If because of our fault we are not able to arrange sanction of credit facilities for you, we shall refund in full the amount of consultancy charges paid by you.
ABOUT US :
We are a financial consultancy firm and provide consultancy for credit facilities under Government sponsored schemes and for small, medium and large projects requiring funding of Rs. 1.0 Crore to Rs. 1,000 crores and more. Please note that we are neither a bank nor a non banking finance company and do not lend on our own. Please also note that we are neither any Bank nor SIDBI nor their authorised agents and nor are authorised agent of any other bank. Our job is to guide the client about main features of various loan schemes of the Government and of different banks and to assist him in getting credit facilities in a perfectly transparent and legal manner. We accept payment on account of our charges by cheque only and we do not accept any cash payment except the initial processing charges of Rs.50,000/- and for which amount receipt is issued. We have not authorised any one to accept cash on our behalf. If you make cash payment to any one on our behalf you shall do so at your own risk, we shall not be responsible.
Our Chairman Mr. Ajay Kashyap after his stint at AXIS Bank has more than fifteen years of experience in arranging credit from banking industry. He is an expert in Credit Schemes launched by the Government. Credit Management and arranging of capital and mobilisation of large funds through Angel Investors, through Venture Capitalists, through Initial Public Offers and through Qualified Institutional Placement have been his areas of special expertise. He is a well known reputed expert in arranging large project loans and in consortium financing.
Our Consultancy Charges :
1. Our consultancy charges will be 2% of the loan amount sanctioned by the lending bank and will be payable in two instalments. All out of pocket expenses will be payable extra on actual basis:
a). Firstly you will pay us Rs.50,000/- as Processing Charges for processing of your proposal.
b). You will pay us 50% of our consultancy charges immediately after processing of your proposal.
c). The balance amount of our consultancy charges will be payable immediately after your getting the sanction letter from the bank.
2. Our consultancy charges for settlement of NPAs / OTS will be negotiated on case to case basis.
Scheme of Small Industries Development Bank of India
Scheme of Small Industries Bank of India for"Asset Light Type Of Businesses "Objective To meet the credit needs of the ‘asset light type of businesses‘ mostly in the new emerging segments of service sector which do not involve creation of fixed assets and generally operate from leased/rented premises. The key objective is to provide finance to the emerging segments in the services sector with lower collateral requirements. Indicative profile of businesses • Restaurant Chains, budget hotel chains, diagnostic/speciality clinic chains, gyms/fitness centers, media, entertainment companies, and other service businesses which invest in tangible but light assets like interiors, equipment, computers, etc. • Organized retail outlets, which invest primarily in interiors and stock , etc.
3 years in operation
Established model of profitability with net profits in atleast 2 of last 3 years
VC/PE assisted companies which have not achieved profitability could also be assisted selectively if they present a clear plan/ trend for achieving profitability.
Other financial norms as specified from time to time.
New entities could be considered selectively only if they are • Promoted by entities/promoter group with such track record as above in similar/ related line of business.
Franchisees of well known franchisors (with track record and franchising experience) for maximum assistance of Rs. 100 lakh.
Forms of assistance • Term Loan • Revolving Term Loan Quantum of assistance • Need based. Generally not less than Rs. 50 lakh. • Maximum assistance is subject to caps not exceeding Rs. 50 crore for registered MSME units and Rs. 35 crore for other eligible service sector projects.
Eligible heads for financing • Capex including investment in light assets like interiors, equipment, furnitures & fixtures, project related intangibles etc. • Working Capital Gap Rate of Interest Rate of Interest• As per credit rating and linked to PLR
Repayment Period Repayment• Generally 5-7 years including moratorium. • Repayment could be suitably structured for seasonal businesses.
Security • The assistance shall be secured by tangible assets, acquired under the assistance and/or other unencumbered assets of the company. • Collateral requirement of 30-50% of assistance.
It is Foolishness to Default on Small Bank Loans
First advice is that never default on bank loans and the complementary advice is - If at all you feel constrained to default, then default big. Defaulting on loans less than Rs. One Thousand Crores is sheer foolishness.
If you have defaulted on a loan, say of a few lac rupees or of a few crore rupees or the default amount is small then your CIBIL score goes down and in future you won't get credit facilities from banks nor from other financial institutions. Defaulting on small bank loans is like committing financial suicide. Moreover, the recovery agents of the bank will harass you and will make hell of your life.
But if the default amount runs into thousands of crores then the Managing Directors of the banks would come begging to your doorsteps offering rescue package or haircut of even 70% and more.
When the default amount runs into thousands of crores you engage top shot lawyers, you live in big palatial houses, you travel in Mercedes or BMW or Porsche and you fly business class and stay in five star hotels. You enjoy luxurious life style with funds borrowed from banks which funds banks are unable to recover from you.
So borrow from banks and repay on time. Expand your business and borrow more. Keep repaying on time honestly and keep borrowing more and more and don't even think of default before borrowing thousands of crores of rupees. This is how our system is.
Think Big, Borrow Big and Live Big.
Scheme of Small Industries Development Bank of India
Scheme of Small Industries Bank of India for"Asset Backed Assistance to Service Sector Entities
" Objective : To meet the credit needs of entities / projects creating fixed assets as part of the project / business or offering fixed assets as collateral. Indicative profile of such businesses Hotels, Hospitals, Logistic Companies etc.
Eligibility New / Existing Service Sector Entities
Forms of assistance Term Loan/ Revolving Term Loan / Line of Credit Quantum of assistance Need based . Generally not less than Rs. 50 Lakh. • Maximum assistance is subject to caps not exceeding Rs. 50 crore for registered MSME units and Rs. 35 crore for other eligible service sector projects.
Eligible heads for financing Project assistance: for setting up new facilities or upgradation/expansion of existing facilities. Along with capex, assistance could also be provided for WC gap/ margin money for WC, intangibles and any other bonafide business expenditure. Exclusive equipment finance : exclusive assistance for equipment Non project assistance: Won capex assistance for WC gap/ margin money for WC, intangibles, and any other bonafide business expenditure.
Rate of Interest As per credit rating and linked to PLR.
Repayment Period • Upto 12 years including moratorium for project based assistance. • For non project assistance, upto 5 years including moratorium. • For exclusive equipment financing, generally 3-6 years including moratorium. • Repayment could be fixed installments or ballooned in line with the expected cash flow. • For seasonal industries/ businesses, repayment could be suitably structured
Security The assistance shall be secured by assets acquired under the assistance and/ or other unencumbered assets of the borrower. Other acceptable collateral securities, as may be stipulated.
SIDBI Make in India Soft Loan Fund for Micro Small and Medium Enterprises[SMILE]
Security Term Loan
ACR and FACR norms would be applicable in terms of extant Loan Policy Soft Loan
Small Industries Bank of India has large number of schemes to finance MSME Sector. For details please visit their website sidbi.in
A venture capitalist (VC) is a private equity investor that provides capital to companies exhibiting high growth potential in exchange for an equity stake. This could be funding startup ventures or supporting small companies that wish to expand but do not have access to equities markets. Venture capitalists are willing to risk investing in such companies because they can earn a massive return on their investments if these companies are a success.
Private equity investment comes primarily from institutional investors and accredited investors, who can dedicate substantial sums of money for extended time periods. In most cases, considerably long holding periods are often required for private equity investments in order to ensure a turnaround for distressed companies or to enable liquidity events such as an initial public offering (IPO) or a sale to a public company.
A qualified institutional placement (QIP) is, at its core, a way for listed companies to raise capital, without having to submit legal paperwork to market regulators. It is common in India and other southeast Asian countries. The Securities and Exchange Board of India (SEBI) created the route to avoid the dependence of companies on foreign capital resources.
There are many private financiers who finance a distressed business by financing at high rate of interest ranging from 24% to 36% per annum or so.
You can raise funds for your project through Initial Public Offer of shares. However, please note that for any fund raising through issuance of shares to the public provisions of SEBI Act have to be followed in letter and spirit.
You can also raise funds by issuing shares to a limited number of your friends and relatives on private placement basis.
Government of India
Ministry of Finance
07 NOV 2019 2:12PM by PIB Delhi
FAQs on Special Window for Funding Stalled Affordable and Middle-Income Housing Project as Approved by Union Cabinet on November 6, 2019
The Union Cabinet chaired by Prime Minister Shri Narendra Modi yesterday approved the establishment of a 'Special Window' fund to provide priority debt financing for the completion of stalled housing projects that are in the Affordable and Middle-Income Housing sector.
For the purposes of the fund, the government shall act as the Sponsor and the total commitment to be infused by the Government would be up to INR 10,000 crore.
The fund will be set up as a Category-II AIF (Alternate Investment Fund) debt fund registered with SEBI and would be professionally run.
For the first AIF under the Special Window, it is proposed that SBICAP Ventures Limited shall be engaged to be the Investment Manager.
This fund would in turn would provide relief to developers that require funding to complete a set of unfinished projects and consequently ensure delivery of homes to the home-buyers.
Since the real estate industry is intrinsically linked with several other industries, growth in this sector will have a positive effect in releasing stress in other major sectors of the Indian economy as well.
The Hon'ble Finance Minister on September 14, 2019 had announced that a special window for affordable and middle-income housing will be created. This special window will provide last mile funding for housing projects which are stressed.
Subsequently, Inter-ministerial consultations and several stakeholder consultations were held with the housing industry including Housing Finance Companies, Banks, NBFCs, Investors, and Real Estate Developers. Problems being faced by home buyers, developers, lenders, and investors were ascertained that could be addressed through the Special Window.
FAQs ON SPECIAL WINDOW FOR FUNDING STALLED AFFORDABLE AND MIDDLE-INCOME HOUSING PROJECT AS APPROVED BY THE UNION CABINET ON NOVEMBER 6, 2019
Answer: The Government shall act as the sponsor to the proposed fund and shall have the authority and responsibility as specified under SEBI (AIF) Regulations, 2012. Whereas, the investment manager is responsible for fund raising, investments and managing the fund team.
Answer:The total commitment of funds to be infused by the Government in the affordable and middle-income group housing sector through the Special Window would be up to INR 10,000 cr. The fund is seeking matching contributions from Banks, LIC and others to generate a total corpus of around INR 25,000 cr.
Answer: For the first AIF under the Special Window, SBICAP Ventures Limited shall be engaged to be the Investment Manager.
Answer: AIFs created/funded under the Special Window would solicit investment into the fund from the Government and other private investors including cash-rich financial institutions, sovereign wealth funds, public and private banks, domestic pension and provident funds, global pension funds and other institutional investors.
Answer: Yes. Based on the inputs received from the stakeholders the Government has decided to increase the scope of investments to include NPA as well as NCLT projects. All applications for financing would be reviewed by the investment committee of the fund for approval, after due-diligence and discussions with existing lenders and legal advisors.
Answer: Any or all projects undergoing corporate insolvency resolution process before the NCLT can be considered for funding through the Special Window upto the stage where the resolution plan for such insolvency resolution process has not been approved / rejected by the committee of creditors.
Answer: No. The focus of this Special Window will be on the projects that are stalled for lack of construction funding. It shall also look at projects that are NPAs or undergoing NCLT proceedings, that can commence construction immediately after funds are made available.
Answer:Funding shall be provided to the projects that meet the following criteria:
Answer:For the purposes of the first fund under the Special Window, Affordable or Mid-Income Housing shall be defined to include any housing projects wherein housing units (to be specified in detail in the fund documents) do not exceed 200 sq. m. RERA carpet area and are priced as below:
Answer: Net-worth positive projects for the purpose of funding through the Special Window shall mean those projects where the value of receivables plus the value of unsold inventory is greater that the completion cost and outstanding liabilities at the project-level.
Answer: Please refer to Answer No. 9
Answer: This price does not include any additional charges for social amenities, parking, housing society, brokerage, deposits, registration and stamp duty charges.
Answer: Carpet Area shall have the meaning as assigned to it in clause (k) of section 2 of RERA i.e. Carpet Area means the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment.
Answer: The fund will invest in any project that meets its investment objective of completing housing units with size less than 200 sq. mts. and the city-wise pricing norms subject to a cap of INR 2 cr.
Answer:The Portfolio Investments by the Fund shall be spread across India with no geographical restrictions. There will be caps at project level, developer-level and city level as per standard risk management practice.
Answer: As per industry estimates, 90% of the stalled projects are under the affordable and mid-income segment.
Answer: This will be done as per RBI guidelines and Bank Board approved policies.
Answer: Revival of stalled projects will lead to early completion and timely possession of homes for home-buyers who have invested their hard-earned money.
Answer:The Special Window shall provide capital for completion of construction of stalled projects. The Investment Manager along with developer / appointed project management companies shall ensure that the end use of funds is only for the purpose of completing the project. Standard financial controls maintained by RERA will be adopted.
Answer: The fund will supervise the disbursement of capital and shall monitor the execution of projects by the developer directly or through third party services. Existing lenders would be consulted as part of the sanction process.
Answer: The investment Manager shall make a detailed investment review including inputs provided by external due diligence agencies. This monitoring mechanism will be part of the contractual arrangement with the developers as part of funding and approval of the fund investment. After the documentation is completed, disbursements would happen.
Answer:As per industry estimates, in the stalled category, there are about 1509 housing projects comprising of approximately 4.58 lakh housing units. Projects meeting the investment eligibility criteria will be financed. The maximum finance for any single project will be INR 400 crore. There will be caps put in place for a single developer and for any single city as well as part of the final detailed scheme.
Answer: The focus of the Special Window is on mid and affordable segment. However, alleviating the stress for the developers in this segment may have indirect collateral benefits for the entire real estate sector including luxury segment.
Answer: The objective of the Special Window is to complete the construction of the stalled projects at the earliest. Accordingly, funding would be structured to meet the construction and sales schedule of the relevant projects.
Answer: As part of the investment review, the Investment Manager will take a call if there is any need to change the developer for the project.
Answer:The Investment Manager, with help of appointed project management companies and appropriate financial controls, shall be responsible to ensure that the end use of monies of the fund is for construction and completion of the projects.
Answer: Please refer to Answer No. 22.
Answer:The fund expects to primarily structure its investments in the form of non-convertible debentures subject to legal, regulatory or other considerations,
Answer:Taking into account the stress in the housing and construction industry, many measures have been undertaken by the Government in the past to boost the housing sector, such as:
Answer: Home-buyers will be required to work with their financing institution (NBFC/HFC/Banks) to honour their obligations to provide balance instalments of home loans, enabling early completion of the project.
Answer: Home-buyers are advised to reach out to their respective lending institutions to seek necessary guidance for additional borrowing or revival of their existing home loans within the existing legal and regulatory framework and standard board approved policies of the lending institutions.
Answer: Those project will continue to have recourse to existing alternatives for funding, restructuring and resolution.
Answer: The Investment Manager shall determine the returns based on the risk profile and specifics of each project.
Answer: The capital provided by the fund would be used only for completion of the stalled projects. This should benefit all the stakeholders in the project.
Answer: Primary responsibility will be of the developer. However, the Investment Manager may also take a call on the necessary actions to be taken on a project to project basis.
Answer: The Investment Manager shall first complete an internal financial analysis to see if the project meets the fund’s investment criteria. This shall be further supplemented by external due diligence agencies to cover areas such as title, financial, real estate and legal, among others, including consultation with existing lenders.
Answer: Project and developer selection shall be the prerogative of the Investment Manager and the Investment Committee of the fund. The investors including the Government will not be interfering with the financial objectivity of that process. The decision of the Investment Committee shall be guided by the investment objective of the fund as agreed in the contribution agreement entered into with the investors. Projects involving fraud or diversion may not be considered by the Fund.
This is a great scheme for builders whose projects are stuck, irrespective of the fact that the account of the builder is NPA or proceedings are pending against him in NCLT.