Loans under the TUFS will be provided on the following terms and conditions:

Amount of loan:

The assistance will be need-based. There will be no minimum limit for individual loans.

Promoters' Contribution

Minimum 20% of the cost of the scheme, (relaxable to 17.5% in extremely deserving cases.)

Debt-equity Ratio:

      1.5:1, relaxable in exceptional cases.

DSCR

      Maximum 1.3

Rate of Interest:

(a) Rupee loan       Loans under TUFS shall carry interest at normal applicable rates of the lending institutions prevailing at the time of sanction/execution of loan documents. Ministry of Textiles, Govt. of India will reimburse interest to the extent of 5% p.a. which would be made available to borrowers availing of assistance under TUFS. Government will place the quarterly reimbursement due to the nodal agency and its PLI's with the nodal agency not more than 15 days in advance so as to ensure timely credit of the borrower's account with the quarterly interest reimbursement amount. (b) Foreign Currency loan       As applicable to the normal FCL. However, Ministry of Textiles, Govt. of India would provide a cover for exchange fluctuations not exceeding 5% p.a.

Period of Interest Reimbursement:

      Interest reimbursement of 5% as also cover for exchange fluctuation not exceeding 5% p.a. will be available during the period of loan as specified in the Letter of Intent or as may be specified in the loan document. In case of subsequent extension of the repayment period, reimbursement towards interest/exchange fluctuation will not be available for the extended period.

Upfront fee:

      1.05% of the loan amount payable at the time of execution of loan documents.

Period of loan:

      8-10 years (including moratorium) depending upon cash flow.

Repayment amount:

      Graded system for repayment with lower repayment in initial years with gradual step-up in subsequent on a case to case basis may be considered, based on projected cash flow.

Security:

      First charge on the entire fixed assets of the borrowing company with a minimum FACR of 1.5 besides the personal/corporate guarantee of promoters/group and pledge of promoters' shareholdings, as may be decided on the merits of the case.

CONVERSION OPTION:

      Not applicable, except in case of defaults.

i)	Detailed project report:
Jute mills are expected to prepare detailed project report, quantify the physical and financial requirements of the scheme including margin money for additional working capital and also bring out clearly the specific technological improvements in crucial areas of operations with their impact on productivity and profitability.
ii)	Management
As in part IV of Govt. resolution, dated 31/03/1999.
iii)	Working Capital Requirements:
As in part V of Govt. resolution, dated 31/03/1999.

            The applicant companies may submit the loan application in the prescribed format along with Detailed Project Report(DPR) to IFCI at its Head Office or any of the Regional Offices. IFCI will process the application / carry out appraisal for assessing the viability of the scheme. Assistance will be considered strictly on commercial viability including track record of the promoters and existence of prudent systems and procedures including corporate governance.

            All efforts will be made to process the application and sanction assistance on merits to deserving concerns within two months from the date of receipt of complete application with full information and DPR.