ARF (NFS) - Composite Loan
Scheme (CLS)
1. Objective: The object of the scheme is to provide credit
for any industrial activity approved by Development commissioner SSI,
GOI in the small scale sector; for providing marketing support to rural
produce for purchase of mobile sales van, mobile sales carts and static
sales kiosks etc..
2. Eligible Borrowers: Eligible borrowers will be Rural artisans,
handicraftmen, small entreprenours, group of individuals, partnership
firms etc.
3. Eligible activities: All manufacturing processing activities
as approved by Dev: commissioner SSI GOI, modernization/ renovation/
expansion/ diversification of existing units / any service activities
aiding rural industries and household services/ any infrastructure support
activity as approved by NABARD (ie.mobile/static cars and kiosks, workshed,
marketing outlets).
4. Nature of assistance: Loans to meet block capital, Block capital
with capitalized working capital.
5. Item of investment: It include work shed, plant & machinery
,Tools & equipments, working capital for one operating cycle capitalized
as term loan and additional working capital for next 4yrs,capitalized
as term loan.
6. Maximum loan: The maximum loan eligible is Rs 10 lakhs under
CLS(NFS).
7. Margin: 15% to 25%
8. Repayment period: The loan should be repaid in 3-10 yrs including
moratorium upto 18 months.
9. Interest rate: Interest rate will be fixed by KSCARDB from
time to time ,in accordance with the guidelines issued by RCS/NABARD/RBI.
10. Security: As fixed by the apex bank in the respective loan
rules, in accordance with the guidelines issued by RBI/NABARD/RCS.
11. Reporting system: The monthly CLS loan disbursement progress
statements should be furnished in the prescribed format.
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