REPAYMENT

Repayment schedules are fixed by the corporation after taking into account the profitability, estimated cash generation and debt servicing capacity of the unit and normally vary from 4 to 10 years. A moratorium (for repayment of installments of principal) ranging from 4 to 24 months is allowed from the date of execution of the security documents. During this period only interest is recovered quarterly. Under SRTO the loan is repayable over a period of 5 years (including initial 4 months moratorium) on the basis of EMI. Under MFI scheme, the loan is repayable over a period of 4 years (including initial 6 months moratorium