When Interest Falls Due
When Instalment of Principal Falls Due
Where to Repay
Rebate on Timely Repayments
Reminder for Payment of Interest Due and Instalments
Consequences of Non-Payment
Facility of Postponement, Reschedulement etc.
Revival of Closed Units
Change in Constitution/Directors/Partners etc.
Interest Falls Due
Interest at the prescribed rates falls due
on the first day of every quarter i.e. Ist day of March, June, September
and December. Please make sure that interest is paid on the due dates so
that you are absolved of the liability to pay the penal rate of interest.
Instalment of Principal Falls Due
The Principal is also recovered in quarterly
Instalments. The first quarterly Instalment falls due from 6 to 24 months
after the expected date of production as envisaged at the time of appraisal
in each individual case.
For all Loans, repayments are to be made at
the concerned Branch or Sub-Office of the Corporation. The repayment should
be made by Cheque/Demand Draft in favour of Rajasthan Financial Corporation.
Please note that RFC has not authorised any agent or agency to collect the
dues on its behalf. However, the officials of the Corporation are authorised
to collect Cheques/DD in person.
on Timely Repayments
Rebate is admissible on timely payments made
on or before due date. Rebate in penal interest is also given if the payment
is made within the same quarter in which it falls due for payment.
for Payment of Interest Due and Instalments
Though we try and remind you of the payments
falling due in advance but non-receipt or non-information about it is no
excuse. In case of default, the entrepreneur is liable to be charged penal
interest at the rate prescribed over and above the effective rate on the
defaulted amount for the period of default. Entrepreneurs are advised to
remain in touch with the concerned Branch Office to know their repayment
liabilities on the due dates.
Non-payment of the due, attracts penal interest.
If the defaults become chronic and we feel that you are avoiding the payments
knowingly and wilfully or the management of the concern is unable to run
the unit on economic lines, RFC will be constrained to take the painful
decision of acquiring assets under Section 29 of SFCs Act, 1951 and dispose
them off by auction/sale to recover the outstanding dues. We do not relish
taking such drastic action unless the circumstances compel us to do so.
If by sale of assets there is any loss to the RFC (on account of the sale
price of assets disposed off by the Corporation being insufficient to cover
the total outstanding). We are left with no alternative but to go in for
legal proceedings to recover the balance amount from promoters/guarantors
of Postponement, Reschedulement etc.
However, if for genuine reasons beyond your
control, you fail to repay the dues of RFC in time, you should approach
the concerned Branch Office and furnish full details. Depending upon the
merits of the case, facilities of postponement, reschedulement etc. may
be considered. However, grant of such facilities is solely at the discretion
of the Corporation. It is also necessary that you should remain in regular
touch and continue to keep the Branch Office informed of the progress and
working of your concern at regular intervals.
of Closed Units
For revival of potentially viable but closed
units, facilities like reschedulement, funding of intt., Waiver of penal
interest, change in partners & Directors and recommendation to Banks
and other Govt. Departments can be considered. We have a separate Rehabilitation
Section at HO dealing with such cases.
During the course of implementation of the
project or after the unit commences the production, sometimes your bankers
may like to have second charge on the assets on which RFC is having the
first charge for providing working capital finance. Application for this
should be made in the prescribed form (which can be obtained from the Branch
Office). Generally such request is always agreed, if it is going to help
in Constitution/Directors/Partners etc.
Our usual terms and conditions for grant of
loan require that the constitution of the concern/company should not be
changed. If change in constitution becomes necessary in the interest of
the project, a written request should be made to the concerned Branch and
change be effected only after the approval has been granted.
Our Branches are Focal Points for all your
problems. The Branch Incharge should therefore be contacted not only for
sorting out your problems, but also for exchange of suggestions for the
improvement of our/your working and procedures. However, if necessary, please
feel free to contact the Dy. General Managers in the Regional Offices or
Functional Managers, Deputy General Managers, General Managers and Executive
Director in the Head Office. The Chairman & Managing Director too would
be glad to meet you.