Our fund based schemes are available for setting up industrial/business ventures within the state of Madhya Pradesh.
Whereas, our non fund based schemes are available throughout India.
Interest Rate Structure
The prevailing interest rate structure is as follows (with effect from 31st March 2019):
| Term Loan Schemes MSME Sector* | Grosst Rate | Rebate | Net Rate |
| Upto Rs. 0.50 lacs | 10.25% | - | 10.25% |
| Above Rs. 0.50 lacs upto Rs. 2.00 lacs | 10.25% | - | 10.25% |
| Above Rs. 2.00 lacs upto Rs. 25.00 lacs | 15.25% | 1.00% | 14.25% |
| Above Rs. 25.00 lacs upto Rs. 100.00 lacs | 15.25% | 1.00% | 14.25% |
| Above Rs. 100.00 lacs | 15.25% | 1.00% | 14.25% |
| Other Schemes @ | |||
| a.Real Estate | |||
| - Commercial | 17.25% | 1.00% | 16.25% |
| - Social | 15.25% | 1.00% | 14.25% |
| b.Working Capital Medium Term Loan | 15.25% | 1.00% | 14.25% |
| c.Short Term Loan | 15.25% | 1.00% | 14.25% |
| d.Small Loan Scheme | 15.25% | 1.00% | 14.25% |
| e.Scheme for Professionals | 15.25% | 1.00% | 14.25% |
| f.Scheme for Misc. Fixed Assets | 15.25% | 1.00% | 14.25% |
| g.Quick Finance Scheme | 14.25% | - | 14.25% |
| h.Business Loan Scheme | 15.25% | 1.00 | 14.25% |
Finance is provided to new industrial units. It is also provided to Hotels, Service Industries, Transportation, R & D activities.
The maximum limit of assistance to non-corporate sector is Rs. 200.00 lacs and for corporate sector it is Rs. 500.00 lacs.
Period of assistance depends upon merits of the case ranging between 5-8 years.
It is available to industrial concerns in existance for atleast 4 years, earning profits/declaring dividend on its share for preceding two years and are not in default to institutions/banks in payment of their dues dues.
Maximum amount available is 77.5% of the cost of the machine - restricted to Rs. 90.00 lacs per proposal.
The overall debt equity ratio (including the assistance under the scheme) should not be more than 2:1.
This scheme is available to existing, concerns having atleast two years profitable operations.
Upto 100% of the cost of the equipment can be financed under the scheme with a minimum of Rs 25.00 lacs and maximum of Rs. 500.00 lacs.
The debt equity ratio (including the assistance under the scheme) should be 1:1.
The assistance under the scheme is available for 3 to 5 years & is repayble in monthly/quarterly instalments.
It is provided to concerns which are in the profit for the last 4 years, having working capital limits sanctioned by any other commercial bank, having regular account with MPFC /Other financial institution.
The minimum assistance under the scheme is Rs. 2.00 lacs and maximum Rs. 100.00 lacs.
The debt equity ratio should not be more than 1:1 and current ratio should not be less than 1.5:1.
Repayment should be done within 12 months.
Application Form
It is provided to industries having last 3 years profitable operations and proven track record with institution/bank. MPFC borrowers whose fixed assets are mortgaged with MPFC and those who are not MPFC borrowers but intend to offer all their existing fixed assets by way of mortgage as primary security can also avail assistance under the scheme.
Minimum loan of Rs. 2.50 lacs and maximum loan of Rs. 500.00 lacs may be provided under this scheme.
Repayment should be done within 3-5 years.
It is provided to private practioners having MBBS or BDS or physiotherapist or equivalent qualification.
Repayment should be done within 6 years.
Other details for the scheme is as per Term Loan.
It is provided to professionals in the field of management, accountancy, medicine, architecture, engineering etc.
The cost of project should not exceed Rs. 10.00 lacs, of which land/building should not be over 50% of the total outlay.
Repayment should be done within 5 years.
The corpus amount is provided to existing reputed finance companies who are engaged in this business.
Under the scheme, the assisted finance company enters into a Memorandum of Understanding (MOU) with MPFC. Subsequently, it gets individual agreement executed between the vehicle operator and MPFC, whenever the corpus fund is used.
The corpus fund assistance is a one time assistance and needs to be utilised within a specified period. All risk of finance under the scheme are to be undertaken by such assisted company.
Assistance under this scheme is available for the purpose of purchase of further machineries and extension of factory building for the existing line of activity.
It is provided only to MPFC's existing profit making borrowers with good track record of repayment(at least thee due installments of loan should have been paid in time).
The limit of assistance is upto the extent of loan already repaid by them till the date of application. Minimum loan is Rs. 2.50 lacs and maximum loan is Rs. 75.00 lacs.
Repayment should be done within 5 years.
Assistance under this scheme is provided to all existing industrial units. However, assistance to projects under implementation may be considered on merits.
Upto 90% (60% for second hand) of the cost of D G Set (invoice value) subject to maximum of Rs.50.00 lacs loan can be considered under the Scheme.
Repayment should be done within 5 years.
The rate of interest applicable is same as the normal lending rates.
A penalty @2% p.a. is levied in case default for the period and amount of default.
It is granted to artisans, village and cottage industries, and small scale industries in the tiny sector (located in areas other than metropolitan areas), involving utilisation of locally available natural resources and/or human skills.
Loan upto a maximum of Rs. 2.00 lacs in granted under the scheme.
Repayment should be done within 10 years, with an initial moratorium of 12-18 months (both for interest and principal).
No upfront fee is levied under the scheme.
The scheme is for providing financial assistance for construction of commercial complex including show rooms and sales outlets.
Loan will be given for purchase of land and construction of commercial complex within the State of M.P.
Sale of shops, show room or any portion of complex shall be permissible with the prior approval of the Corporation. The proceeds shall be desposited in the loan account of the borrower as per terms of agreement.
The minimum cost of project should be Rs 10.00 lacs.
The promotor is required to contribute 50% of total cost of project. In case of companies, net worth should not exceed Rs. 10.00 Crores.
MPFC will hold the first charge by mortgaging assets i.e. land & building, shop premises, saleable part of commercial complex.
The loan should be repaid in 5 years, including a maximum of 2 years moratorium.
(Rs. in lacs)
* (the purchase price will be considered)
** (the eligible subsidy would be calculated on the actual loan amount or maximum ceiling on loan eligible for subsidy, whichever is lower)
Promoters' contribution, security, debt-equity ratio, upfront fee, etc. will be applicable as per existing norms.
Entrepreneurs availing credit linked capital subsidy for technology up gradation shall not avail any other benefit including Interest Subsidy, under any other scheme of the Central Government. If it is found that capital subsidy from the Government has been availed on the basis of any false information, the industrial unit shall be liable to refund the subsidy availed, along with interest.
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Services for credit syndication with other financial institutions/banks/finance companies in respect of term loans/lease finance/working capital etc. are provided.
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