BILL FINANCE SCHEME FOR TWAD CONTRACTORS

Objective	For discounting the Bills of TWAD as per purchase order.
Eligibility	Registered Contractors/ Units of TWAD
Sanction Limit	a) 90% for work order value above Rs.2.00 lakh & upto Rs.10.00 lakh b) 75% for work order value above Rs.10.00 lakh & upto Rs.10.00 Crore. c) The maximum sanction limit will be 50% for work order value above Rs.10.00 Crore.
Drawal Limit	85% of individual bill amount only.
Credit Period	Maximum credit period of 120 days for each bill.
Security	a) The loan will be secured by post dated cheques given by the unit. The amount of post dated cheques will be the amount disbursed for each bill together with interest from the date of disbursement to the date of post dated cheque i.e.120 days from the date of disbursement. b) The loan will be secured by the personal guarantee of proprietor/ partner/directors of the unit. c) In case of Limited Companies, necessary charge has to be created with ROC.
Collateral Security	Nil