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NBFC Credit Operations


NBFC Credit Operations

Short/Medium Term Corporate Lending

IFCI Venture also provides Short/medium term Lending to entrepreneurs and corporates, to facilitate business growth across industries. Lending is governed as per guiding principles laid down by a Board approved Lending Policy with the objective of maintaining good asset quality and growth in operational income, besides balancing the risk-return trade off, with a diversified asset portfolio. There is a structured Governance Framework to implement the same. Lending exposure to different business segments and corporate/groups are being undertaken by IFCI Venture, in line with policy and regulatory requirements, guidelines & norms prescribed by RBI, macro-economic environment, market conditions, etc.

Key Features:

  • Loan amount – Upto Rs. 10 Crore.
  • Tenure - up to 4 years (5 years for minimum A Rated companies)
  • Rate of Interest - 12.95 -14.00 % p.a.
  • Upfront Fee – Upto 1.00 % (upfront).

Principles guiding eligibility(Indicative)

  • Profitability track record, Net worth position, Debt service coverage ratio
  • Credit Rating
  • Adequate cash flows
  • Adequate Security cover
    • Exclusive/First/pari-passu charge basis on the assets of the company financed through lending/any other charge on the assets of the company as negotiated with the borrower.
    • Pledge of listed free shares in Demat Form
    • Personal Guarantee of Promoter(s) /Corporate Guarantor(s)
    • ECS mandate with regard to Principal and Interest repayments.

The acceptance of eligibility for funding and sanction is at the sole and absolute discretion of IFCI Venture.