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CITIZEN CHARTER
Objective
To extend financial assistance to MSME and service sector enterprises in the small and medium scale in National Capital Territory of Delhi and Union Territory of Chandigarh. Vision
To become a leader for catering to the financial
and developmental needs of the MSME sector to make it robust and competitive.
To position DFC as a customer-friendly institution and a house hold name in
NCT of Delhi and UT of Chandigarh.
Mission
"To facilitate credit flow to MSMEs for
promotion, development and economic growth of this sector.” Scope of Activities The Corporation extends financial assistance to micro, small and medium scale industries, service sector industries and commercial transport sector in National Capital Territory of Delhi and Union Territories of Chandigarh. Focus of the Corporation is social objective i.e. poverty alleviation, employment generation, creating opportunity for self employment, relocation of industries, cleaning environment and encouraging first generation entrepreneurs. Corporation makes available finance for all activities which are permitted under SFC's Act or as approved by the SIDBI/State Govt.
DETAILS OF BUSINESS TRANSECTED BY THE ORGANIZATION
1. The
Corporation is authorized under provision of SFC’s Act, 1951 to carry on and
transact any of the following kinds of business, namely:-
(a) guaranteeing , on such terms and conditions as may be agreed
upon,-
(i) loan raised by industrial concerns which are
repayable within a period not exceeding twenty years, and is floated in the public market;
(ii) loan
raised by industrial concerns from scheduled banks or State co-operative banks
or other financial institutions;
(b) guaranteeing, on such terms and
conditions as may be agreed upon, deferred payments due from any industrial
concern in connection with its purchase of capital goods within India;
(c) underwriting of the issue of stock,
shares, bonds or debentures by industrial concerns;
(d) transferring for consideration any instruments
relating to loans and advances granted by it to industrial concerns;
(e) acting as agent of the Central Government or the State
Government or the Development Bank or
the Small Industries Bank or the IFCI Limited formed and registered under the
companies Act, 1956, or any other
Financial institution notified in this
behalf by the Central Government in respect of
any matter connected with , or arising out of, the grant of loans or
advances to an industrial concern, or subscription to debentures of an industrial concern or relating to the
business of the Development Bank, Small Industrial Bank, IFCIL Limited
or financial institution;
(f) subscribing to or purchasing of, the stock, shares, bonds or
debentures of an industrial concern or any other concern;
(g) retaining
as part of its assets any stock, shares, bonds or debentures which it may
acquire by subscription or in
fulfillment of its underwriting liabilities and disposing of the stock, shares,
bonds or debentures so acquired.
(h) granting
loans or advances to , or subscribing to debentures, of an industrial concern,
repayable within a period not exceeding twenty years from the date on which
they are granted or subscribed to , as the case may be :
PROVIDED that the Financial
Corporation may , with the prior approval of the Small Industries Bank, exceed
the said limit of twenty years up to a further period of ten years:
PROVIDED FURLTHER that nothing contained in this
clause shall be deemed to preclude the Financial Corporation from granting
loans or advances to, or subscribing to debentures of, and industrial concern
to which may be attached an option to convert such debentures or loans into
stock or shares of the industrial concern:
PROVIDED ALSO
that the Financial Corporation may , in the exercise of such option, convert
the amounts outstanding on such debentures or loans into stock or shares of the industrial concern if
such concern increases its subscribed
capital by the issue of further stock or
shares in accordance with the subject to, the provisions of s.81 of the
Companies Act, 1956
Explanation: In this clause, the expression “the
amounts outstanding on such debentures or loans “shall mean the principal,
interest and other charges payable on such
debentures or loans as at the time when
the amounts are sought to be converted into stock or shares.
(i) accepting or discounting promissory notes and bills of exchange made, drawn,
accepted or endorsed by industrial
concerns or by the any person selling capital goods manufactures by one
industrial concern to another industrial concern.
(j)
undertaking research and surveys for evaluating or dealing with marketing
or investments or undertaking and carrying on techno-economic studies or other
activities in connection with the development of any industry;
(k)
providing technical and administrative assistance to any industrial
concern or any person for the promotion , management or expansion of any
industry;
(l)
planning and assisting in the
promotion and development of industries;
(m)
providing consultancy and merchant banking services;
(n)
acting as the trustee for the holders of debentures or other securities;
(o)
leasing, sub-leasing or giving on hire or hire-purchase of industrial
plant, equipment, machinery or any other assets;
(p)
factoring;
(q)
providing export related credit and service;
(r)
undertaking money market related activities;
(s)
setting up of mutual funds and undertaking asset management activity;
(t)
promoting , forming or conducting or assisting in the promotion, formation
, or conduct of companies, subsidiaries, societies, trusts or such other
associations of persons as it may deem
fit;
(u)
opening or confirming or endorsing letters of credit and negotiating or collecting bills and other documents drawn
there under;
(v)
doing such other business as the
Small Industries bank may authorize, and
or generally the doing of such acts and things as may be incidental to or
consequential upon , the exercise of its powers or the discharge of its duties
under this act.
Activities Eligible for Financing under Section 2 C of the
SFC’s Act 1951
“industrial
concern” means any concern engaged or to be engaged in:-
I.
the manufacture, preservation or
processing of goods;
II.
mining or developments of mines;
III.
the hotel industries;
IV.
the transportation of passengers or
goods by roads or by water or by air or by ropeway or by lift;
V.
the generation and distribution of
electricity or any other form of power;
VI.
the maintenance, repair, testing or
servicing of machinery of any description or vehicle, or vessels or motor boats
or trailers or tractors;
VII.
assembling, repairing or packing any
article with the aid of machinery or power;
VIII.
the setting up or development of an
Industrial area or Industrial estate;
IX.
fishing or providing shore facilities
for fishing or maintenance there of.
X.
Providing weigh bridge facilities;
XI.
Providing engineering, technical ,
financial , management , marketing or other services or facilities for
industry;
XII.
providing medical , health or other
allied services;
XIII.
providing software or hardware services
relating to information technology, telecommunication or electronics including
satellite linkage and audio or visual cable communication;
XIV.
setting up all development of tourism
related facilities including Amusements Parks, Convention Centre, restaurant,
Travel and transport ( including those at airports), Tourist Service agencies and
guidance and counselling services to the tourist;
XV.
construction;
XVI.
development, maintenance and
construction of roads;
XVII.
providing commercial complex facilities
and community center including conference halls.
XVIII.
floriculture;
XIX.
tissue culture, fish culture, poultry
farming , breeding and hatcheries;
XX. service industry such altering,
ornamenting, polishing, finishing, oiling, washing, cleaning or otherwise
treating or adopting any article or substance with a view to its use, sale,
transport, delivery or disposal;
XXI.
research and development of any concept
technology, design, process or product
whether in relation to any of the matter aforesaid, including any
activities approved by the Small Industries Bank; or
XXII.
such other activity as may be approved by the Small
Industries Bank;
Note:-
The industries as mentioned in prohibited / negative list of industries circulated
by the GNCT Delhi and Chandigarh are not eligible for financing.
EXTENT
OF LOAN
Rs. 10.00 Crore for companies and co-operative societies
Rs. 4.00 Crore for proprietorship and partnership firm
Industrial Units / Service Sector Enterprises where share capital
& free reserves do not exceed Rs. 10.00 Crores are eligible to avail
loans.
RATE OF INTEREST
1. The
Corporation has adopted fixed interest rate regime and the interest is charged
on reducing balance basis. The prevailing interest rate is 13% p.a. However, the interest rate for DAMB shops has been fixed at 12% p.a. DFC also grants rebate of 0.75% p.a. in interest rate in the following cases :
a) Units which have been rated among
the top three credit ratings given by CRISIL/ ICRA/ SMERA/ CARE/ FITTCH and the
credit rating given by the agency is valid on the date of application.
b) The existing borrowers of
the Corporation who were standard
asset during the last three years.
c) The past clients of the Corporation whose loan remained standard during the tenure of loan. d) Any other deserving case as decided by the CMD.
The rate of interest
of 13% p.a. proposed shall be bench mark rate for internal credit scoring and
rating model(CSRM) to be implemented by the corporation for all cases except
case covered under Assets based financing and transport.
2.
Additional
interest @ 2.5% p.a. is charged on the defaulted amount and for the period of
default. Any change in the rate of interest at the time of first disbursement
on the directives of the RBI/SIDBI/DFC will be applicable even if the loan has been sanctioned
and mortgage/Hypothecation deed has been executed earlier.
3.
Interest
is charged on EMI/ quarterly basis depending upon the scheme of financing. Further, during the moratorium period,
interest is charged and recovered on monthly/ quarterly basis as per the
financing scheme. In the event of default
of monthly installments interest at the agreed rate shall be charged on the
installment or any part there of which may for the time being remain unpaid for
the period of default on the monthly rest basis besides penalty as per the
following slab:-
· For EMI upto Rs 10,000/-, Rs 20 p.m. per installment.
· For EMI Rs 10,000/- to 25,000/- Rs 50/- p.m. per installment.
4.
The
repayment of loan availed by borrower (disbursed amount and not sanctioned
amount) is recoverable along with normal interest charged on daily product
basis and additional interest in case of delay.
Pre-Payment Charges
In the event of
pre-payment / fore – closure of the loan, the borrower is liable to pay the
pre-payment charges @ 2% of outstanding principal amount. However, there is no
pre payment charge in Business Loan Scheme.
PROCESSING FEE
The Processing fee at uniform rate of 0.5% of the loan amount +
applicable service tax in all cases w.e.f. 01.04.2011. However the borrower
will have to bear all other misc. expenses as is required to process the case
further i.e. the expenses on account of valuation of properties, advocate fee
on account of title search and inspection cost etc.
FINANCING
SCHEMES
The
corporation finances all manufacturing activities and service sector activities
permissible under the Master Plan of Delhi/ Chandigarh and in consonance with
the Industrial Policy of Delhi Government /Chandigarh Administration.
Entrepreneurs are welcome to get finance for setting up hospital, nursing
homes, diagnostic centers, tourism related activities, hotels, restaurants,
amusement parks, hi-tech electronics/ software industries apart from a host of
service sector activities like boutiques, beauty parlors, health centers, etc.
in line with the requirements of metropolitan character of Delhi/ Chandigarh.
The
Corporation offers various schemes catering to needs of all categories of
entrepreneurs, who may be from weaker section of society or under any special
category or a general category.
LOAN
APPLICATION FORMS
Form
A Up to Rs.50,000/-
Form
B Above Rs. 50,000 and up
to Rs.2.00 lacs.
Form
C Above Rs. 2. 00 lacs and up to RS 10.00 lacs
Form
D Above Rs. 10.00 lacs
Simplified loan
application forms for SRTO, Relocation Scheme, Business Loan Scheme, Household
Industries, Professional Qualified Entrepreneur scheme and Equipment Financing
Scheme are available separately. Application forms can be obtained from the
Reception Counters or can be downloaded from the website. Guidance for filling up the same is also made
available.
The Corporation
will charge a nominal cost of Rs20.00 for each application form
Guidance
i) Application Forms in respect of all
above financing schemes of the Corporation are available at DFC’s Head Office, Sub
Office Rohini and Branch office Chandigarh from 11.00 A.M. to 4.30 P.M. on any
working day by paying a nominal cost of Rs20/-
.ii) Assistance will be provided to fill
up the form by Dy. Manager / Manager of the concerned division from 11.00 a.m.
to 4.30 p.m. on any working day or at phone Nos. given at last page.
iii) For guidance and further details please
contact the dealing Managers/Asstt. General managers/Dy. General managers at
telephone Numbers ( HO) 011-28525035-39 sub Office Rohini 011-27572696, 27572699, 27572125and
branch office Chandigarh (2652738-39)
PROCESS
OF SANCTION, DISBURSEMENT & RECOVERY
Duly
filled-up loan application forms, along with documents as per the checklist
provided in application forms, are accepted by the Nodal officers in the
concerned Divisions (Industrial Loan, Transport Loan and Relocation Loan
Divisions) after due scrutiny. The same, after further analysis and KYC, are
placed before the screening committee /ABC Classification Committee, which
finally accept the loan proposal for further financial and technical
evaluation/appraisal (with applicant
participation/input).
In
case the loan proposal is for Rs10 lakh and above, the same is placed before
the Project Evaluation Committee (PEC) before finally placing it to
sanctioning authority. ( PEC is not
applicable for Relocation casers and Transport cases). The time period for
sanction of loan is as under:-
·
Loans up to
Rs.2.00 lakh : 7 working days from the date of compliance
of all required formalities ( by the borrower and DFC) for sanction and
categorization of the case.
·
Loans above
Rs.2.00 lakh and upto Rs.5.00 lakh : 10 working days from the date of compliance
of all required formalities ( by the borrower and DFC) for sanction and categorization of the case.
·
Loan proposal to
be placed in SLC/IC :
15 working days from the date of compliance of all required formalities ( by
the borrower and DFC) for sanction and
categorization of the case.
·
Loan case to be
placed in EC/Board : 20 working days
from the date of compliance of all required formalities ( by the borrower and
DFC) for sanction and categorization of
the case.
The Legal Officer of
the Corporation carries out scrutiny of the legal papers (collateral security)
submitted by the party simultaneously at pre-sanction stage. The papers of
collateral security is got searched by panel advocate of corporation. After
establishment of clear marketable title, the market value of the property is
also got valued by panel valuer of the Corporation. ROC search is also required
in company cases. The Legal Officer finalizes the various documents for
execution in the case.
The
loan is disbursed after the party complies with all the conditions as per
sanction letter/executed documents. The industrial loans are released in phases
in proportion to the investment brought in by the promoter in the project while
in case of transport loans, the loan is released after the promoter has
arranged/invested entire equity.
The process of disbursement
of the loan is completed within the time frame as under:-
·
First
disbursement: In all loan
cases the first disbursement would be
made within 2 working days after compliance of all formalities including legal
documentation and terms & conditions of sanction letter.
- Closure of Loan Application: The letters are issued to the applicants
for submission of required documents within 7 working days, failing which the loan application shall
be closed and decision regarding closure of the case shall be conveyed within 2
working days from the date of orders.
The process of recovery will be as per SFC Act 1951 and “No Due
Certificate” along with documents will be issued within 15 working days after
clearance of entire loan.
DETAILS OF SERVICES PROVIDED TO THE CLIENTS
Schemes Provided to
the Clients
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