The corporation has recently introduced a scheme of corporate loan under which assistance of INR  500 lacs is granted which can be utilised within six months from date of sanction for:

• Expansion / modernization / balancing equipment / technology tie ups fees along with meeting of working capital requirements, if any. 
• Takeover of loans of other institutions coupled with additional assistance, if any. However, the assistance shall not cover new projects.
• Meeting the expenses relating to general corporate needs of unforeseen nature such as VRS/Bonus/IT payments etc.

Eligibility Criteria:

1.      The unit, situated in Haryana should be carrying out commercial operations for more than last five years.

2.      The company should be making profits for the last three years.

3.      Minimum net-worth and cash accruals of the company as per the last audited balance sheet should be INR  5 crore and INR 1 crore respectively (the revaluation reserves shall not be considered towards net-worth).

4.      The company should not be in default of principal/interest to banks/financial institutions and its account should have been classified as `Standard Asset’ by its lenders.

5.      Current ratio of the company as per last audited balance sheet should not be less than 1:1.

6.      Interest coverage ratio of the company as per last audited balance sheet should not be less than 2:1.

7.      Companies not assisted by HSIIDC but otherwise meeting all the eligibility criteria would also be considered.

Financing Parameters:

Security:

1.      Demand promissory note.

2.      Extension of first charge on fixed assets of the company with asset coverage ratio (including proposed loan and fixed assets) of not less than 1.5 times.

3.      Exclusive charge on fixed assets to be acquired under Corporate Loan Scheme.

4.      Security margin not below 25%.

5.      Personal guarantee of promoters.

DISBURSEMENT OF SANCTIONED ASSISTANCE :

Procedure is same as under General Term Loan.