An Initiative of the Committee for Capacity Building of CA Firms and Small & Medium Practitioners, ICAI.
The Committee for Capacity Building of CA Firms and Small & Medium Practitioners, ICAI is set up to promote capacity enhancement of members and firms through Networking, Merger and raising core competency of CA professionals.
The Committee has taken a major initiative to arrange financial assistance to all members in practice / firms in the form of specially designed loan scheme through Corporation Bank. Through the scheme, eligible Chartered Accountants can avail finance for setting up of offices including cost of furniture/fixture/office equipments-computers and other accessories. The scheme would also enable the Chartered Accountants to finance a part of the working capital for building their profession and will also take care of the needs of fresher (CAs with experience below three years).
* Members & firms are requested to avail the benefits of this loan scheme. For further details, please contact nearest branch of Corporation Bank.
Highlights of the loan scheme are given below:
Eligibility:
- Chartered Accountants, individually/jointly or Proprietorship Concern or a Partnership Firm/ Partnership with Limited Liability
- Age of the individual/ proprietor shall not exceed 65 years.
- The applicants/Firms are registered with Institute of Chartered Accountants of India (ICAI) and also holding valid certificate/license for carrying out the practice.
- The applicant’s/firm’s name shall not appear in the RBI defaulters list/CIBIL report.
- In case of Firms, all partners shall join as co applicants.
- The applicants/firms should not have been subjected to disciplinary action by the Institute.
Purpose:
- For construction of office premises
- For acquisition of ready built new office premises, partly or fully constructed
- To finance cost of land and construction thereon
- To finance cost of furniture & fixture, fittings of office equipments/computers/other accessories etc.
- To finance working capital and /or financing receivable
Nature of facility:
Demand Loan/Term Loan for acquisition of fixed assets and/or Cash Credit/Overdraft for working capital
Margin:
A. For Term Loan/Demand Loan: Uniform margin of 20%
B. For Working Capital: 25% for Book Debts/Receivables for cash credit or clean overdraft
Value of land shall not exceed 50% of project cost in case of purchase of site and construction of premises
Quantum of loan:
| Applicable For Freshers: ( Experience below 3 years) | ||||
| Metro | Urban | Other Centres | ||
| I. | Maximum eligibility: TL/DL * Out of which: | Rs. 20 lacs | Rs. 15 lacs | Rs. 10 lakhs |
| a. | For office premises | Rs. 15 lacs | Rs. 12 lacs | Rs. 8 lacs |
| b. | For furnishing & Other assets | Rs. 5 lacs | Rs. 3 lacs | Rs. 2 lacs |
| II. | For Working capital requirement | Rs. 2 lacs | Rs. 1 lac | Rs. 1 lac |
Applicable For Existing Firms (Having Practice for 3 Years And Above)
| A] WHERE LATEST GROSS ANNUAL INCOME IS UPTO Rs. 5 LACS (income includes professional fees/consultancy fees etc..) | ||||
| Metro | Urban | Other Centres | ||
| I | Maximum eligibility : TL/DL * Out of which: | Rs. 30 lacs | Rs. 20 lacs | Rs. 15 lakhs |
| a | for office premises | Rs. 20 lacs | Rs. 15 lacs | Rs. 12 lacs |
| b | For Furnishing & Other assets | Rs. 10 lacs | Rs. 5 lacs | Rs. 3 lacs |
| II | For Working capital | Rs. 2 lacs | Rs. 1 lac | Rs. 1 lac |
| B] WHERE LATEST GROSS ANNUAL INCOME IS ABOVE Rs. 5 LACS & UPTO Rs. 10 LACS AS PER LATEST IT RETURN (with experience of 3 years and above) | ||||
| Metro | Urban | Other Centres | ||
| I | Maximum eligibility: TL/DL * Out of which: | Rs. 50 lacs | Rs. 25 lacs | Rs. 20 lakhs |
| a | For office premises | Rs. 40 lacs | Rs. 20 lacs | Rs. 15 lacs |
| b | For Furnishing & Other assets | Rs. 10 lacs | Rs. 5 lacs | Rs. 5 lacs |
| II | For Working capital | Rs. 5 lacs | Rs. 2 lacs | Rs. 2 lacs |
| C ] WHERE LATEST GROSS ANNUAL INCOME IS ABOVE Rs. 10 LACS, AS PER LATEST IT RETURN
(WITH EXPERIENCE OF 3 YEARS AND ABOVE) |
||||
| Metro | Urban | Other Centres | ||
| I | Maximum eligibility : TL/DL * Out of which: | Rs. 125 lacs | Rs. 65 lacs | Rs. 30 lakhs |
| a | For office premises | Rs. 100 lacs | Rs. 50 lacs | Rs. 25 lacs |
| b | For Furnishing & Other assets | Rs. 25 lacs | Rs. 15 lacs | Rs. 5 lacs |
| II | For Working capital | Need based | ||
Security:
a. Term Loan /Demand Loan: Assets acquired out of the loan.
b. For Working Capital Loan: Assignment of Book Debts/Receivable.
c. Collateral security: Suitable third party guarantee or Tangible securities.
Repayment:
- Term Loan – Repayable in maximum period of 10 years by EMI/PMI, initial moratorium of upto 18 to 24 months.
- Demand Loan – Repayable in maximum 3 years by EMI/PMI, including initial moratorium of 6 months.
- Repayment to commence from date of commercial operations or after completion of initial repayment holiday or as per the terms of sanction.
- Interest shall be serviced as and when debited.
Rate of interest:
- Upto Rs. 10 lacs – Min. 10% (Base Rate + 2.25%)
- Above Rs. 10 lacs – Min. 10.75% (Base Rate + 3%)
(Investment in fixed assets less than Rs. 100 lacs)
- Above Rs. 10 lacs – Min. 11.75% (Base Rate + 4%)
(Investment in fixed assets above Rs. 100 lacs)
* Subject to gradation of the borrower
- Rate of interest at floating rate linked to Base Rate
- Rate of interest is subject to review
Note: Concession of 0.50% extended, if additional collateral security viz., property, LIC policies, Deposit etc., to the extent of 25% of loan amount is provided.
Processing Charges:0.25% of loan amount subject to a minimum of Rs. 5000/-
Prepayment charges:-Nil
