Madhya Kshetra-Scheme for SC/ST
1. Industries EligibleAll the industries which are eligible for financial assistance under the provisionsof the SFC’s Act and promoted by persons belonging to SC/ST are eligible forloans under the Scheme. The applicant should produce certificate of his casteither from Tehsildar or Fist Class Magistrate.

2. Limit of AssistanceLoans from Rs. 2,000/- to Rs. 5.00 lacs.

3. Purpose Loans under this scheme are granted for acquisition of fixed assets, constructionof hotel etc. Under this scheme loans for installation of machinery in rentedpremised can also be considered.

4. Margin as per usual norms would be imposed on the proposed investment in land,building and plant and machinery. Provided if the SC/ST entrepreneurs so desiresthan the Corporation would be agreeable to reduce the margin to 5% and considerfinancial assistance on investment in land, building and plant & machinery at 5%margin provided collateral security of immovable property equivalent to the difference in value between the normal margin and reduced margin is offered bythe entrepreneur.Provided however that the above relaxation in margin would not be admissible incase of transport loans.

5. Security

a) First charge on the existing and proposed fixed assets of the concern.

b) In case of rented premises for installation of Plant and machinery,collateral security equivalent to the loan sanctioned amount shall be furnished.

6.Debt Equity Ratio

2 : 1 Except Composite Loan cases.

7. Interest

a) For loan upto Rs. 5.00 lacs, 2% less than the applicable under the differentschemes.

b) For loans above Rs. 5.00 lacs, Corporation’s prevailing interest rate wouldbe applicable.

8. Liquidated DamagesAs application from time to time depending upon the amount of loan.

9. Processing charges1% of the loan amount sanctioned.

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