Disbursement Procedure

After the sanction of loan it will be released subsequent to the borrower complying with all
the terms and conditions stipulated in the loan sanction letter.

The first step is execution of necessary legal documents by the borrower with the Legal
department of the Corporation. The borrower needs to make necessary upfront fee and legal
fees, which is linked to the loan amount sanctioned at this stage.

The borrower has to obtain appropriate licenses/permissions from various statutory

authorities depending upon the type of project as stipulated in the loan sanction letter.

The borrower has to first bring in his contribution/margin towards the assets being considered
for financing by the Corporation. The loanee has to submit a Chartered Accountant certificate
in a specified format indicating the investments made and the sources of funds.

The officers of the Corporation will visit the project site to ascertain the status of project
implementation and also the amount invested in the project.

Eligible loan releases will be made considering the progress in implementation of project and
also the securities created and after inspection.

The release towards building is considered after the promoter complying with the first
investment clause. The loan towards building is released in suitable instalments after
inspection.

If the borrower has already remitted his margin as advance for the acquisition of plant and
machinery and submits required proof, the Corporation will issue commitment letter to the
machinery supplier for the balance eligible loan amount. The committed amount will be
released to the machinery supplier once he supplies the machinery to the satisfaction of the
Corporation and the borrower.

Similarly in respect of imported machinery, the Corporation facilitates opening of FLC after
ensuring that the borrower complies required formalities.

The borrower will plough back the releases for creating further assets and he can obtain
additional releases. A provision will be made in the loan amount itself for meeting interest
during implementation. Necessary release and adjustment will be made out of the interest
during implementation provided.

The process will go on till the borrower avails the release of entire loan amount and
implements the project in total.

Periodic visits will be made by the officers of the Corporation to ascertain the status of
project implementation and it will be monitored closely till the entire loan amount is released
to the borrower.