FORMATS FOR APPLYING FOR MARGIN MONEY LOAN UNDER MARKETING  SCHEME 

 INSTRUCTIONS TO FILL UP THE APPLICATION FORM

 MARGIN MONEY LOAN FOR SETTING UP OF MARKETING OUTLETS FOR SSI PRODUCTS

 1.      Please read rules of the scheme carefully before filling the application form.

2.      Please submit the filed in application in duplicate with all the enclosures (two sets) noted in the acknowledgement card to your District Industries Centre

3.      Please insist on receipt of acknowledgement when doing so.

4.      All incompletely filled in applications or cases where all required enclosure are not submitted are liable to be rejected.

5.      Propriety units do not have to submit enclosures 3,4 and 5 listed in the acknowledgement card.

6.      Partnership / Company / Society type of units have to furnish the name and addresses, both permanent and present of all their present members / directors at column 3 of the application form.

All these members / directors should authorise through a resolution at their Board meeting, one director, in the following format to apply for the scheme.

“The Board resolved to apply for assistance under Government of Kerala’s margin money loan scheme for setting up of marketing outlets for SSI products after having carefully read and understood the rules and the provisions of the Margin Money Loan Scheme for setting up of marketing outlets for SSI products.  The Board authorised Shri/Smt. ………………to apply for assistance under this scheme and to execute all agreements and documents on behalf of the company for availing assistance under the scheme”.

On submission of a self-attested true copy of this Board Resolution along with the application, only director need sign and execute all document under this scheme.

 7.      Please note that margin money loan is a form of equity assistance and is to be made available at the outset to help you meet your requirements; as such you are expected to apply for the scheme before the first disbursement of the loan.  If you do not apply in time it raises a presumption that you do not require the loan.

8.      No application shall be entertained, if submitted after one month of availing the loan if disbursed in one installment or preferred after availing all the installments of working capital loan from financial institution of the loan is disbursed in two or ore installments.  

APPENDIX – I
(Prescribed application fee to be remitted)

 APPLICATION FOR MARGIN MONEY FOR SETTING UP OF MARKETING OUTLETS FOR SSI PRODUCTS FROM THE GOVT. OF KERALA 

I/We …………………. On behalf of M/s. ………………….. bearing Approval Order No. of the Director of Industries and Commerce ………………… hereby apply for a margin money loan of Rs. …………….. against working capital loan for setting up the marketing outlet.

 I/We have read the rules of the Margin Money Loan Scheme for setting up of marketing outlets for SSI products and undertake to abide by all the provisions therein

 I/we also undertake that the entire loan taken by me/us under this scheme shall be paid with interest thereon at the rates prescribed by Government form time to time and also that in case of default, the said loan along with the interest and penal interest shall be recoverable as if it were arrears of land revenue from the movable and immovable assets owned by me/us under the provision of the Kerala Revenue Recovery Act, 1968

 I/We declare that the facts stated above are true to the best of my/or knowledge and belief.

Signature of the Proprietor/ 
Managing Director / Managing partner / Secretary.  

 APPENDIX – II

 Recommendation of the Financial Institution

(to be enclosed along with attested copy of loan sanction order attested by Manager of Bank / Financial Institution)

 We have examined in detail the application submitted by M/s…………………….. having satisfied above the feasibility and viability of the scheme proposed by them we have sanctioned a working capital loan of Rs. ………………….. (Rupees …………… only) on …………….(date)

 The cost of project comes to Rs………….. (Rupees ……………….only).  the Margin to be brought in by the common corporate entity comes to Rs. …………….. (Rupees ………………….only).  The DER stipulated is …………………….. The total requirement of working capital comes to Rs. ……………… (Rupees ………….. only)

 The first installment of working capital loan was disbursed on …………….

 We shall furnish you the schedule of repayment on execution of agreement by the party and disbursement of the 1^st installment of loan by us.

 We also undertake to advice you on the completion of repayment of loan by the loanee or on any legal action against or take over of the unit by us.

 We also undertake to keep the department posted on any and all development relating to the entity which may adversely affect the interest of the Government / Our bank / Institution.

Station:           &nbs p;          ;                          ;                         & nbsp;           &n bsp;           &nb sp;           &nbs p;   Name & signature of the Agent Date:           &nbs p;             ;                         & nbsp;           &n bsp;              &nbs p;           &nbs p;             ;             Agent / Manager

 (seal)

 Name and address of the Bank

 To

 The Director
Directorate of Industries & Commerce

APPENDIX – IV

(stamp paper worth Rs. 50/-)

THIS AGREEMENT is executed on this the day of …………….. two thousand and ……………..between Shri./Smt………………. (Here enter address) …………………. On behalf of M/s. …………………….. registered under the department of Industries & Commerce with Approval Order No. …………….. and having its Registered Office at Door No……………………… (here in after called ‘the loanee’) in favour of the Governor of Kerala (herein after called the ‘Government’)

WHEREAS the above entity has applied for the grant of Margin Money Loan to the Government.

AND WHEREAS on the entity’s request and as per order No. ………………… of the Director of Industries & Commerce (herein after called the ‘letter of sanction’ which shall form part of this deed as if incorporated herein) the Government have agreed to sanction an amount of Rs……………….. (Rupees ……………………. Only) as per order No………….(herein after called the ‘said order’ which shall form part of this form as if incorporated therein) (the receipt of which the loanee hereby admits and acknowledges) subject to the conditions contained in the letter of sanction and also subject to the terms and conditions here in after appearing.

 NOW THEREFORE THIS DEED WITNESSETH AS FOLLOWS:

1.      The loanee shall perform all the terms and conditions contained in the letter of sanction and the said rules and those conditions which are applicable to the loanee according to the provisions of Kerala Financial Code or such other rules as may be framed herewith in substitution for or in addition to the said code.

2.      The loan amount of margin money is agreed to be repaid by the loanee in sixteen quarterly installments of Rs……… (Rupees ……………only) each beginning from the expiry of the 3 months from the date of disbursing of the Margin Money by the Director of Industries & Commerce, or earlier at any time in lump in case the Bank / financial institution recalls its loan.

3.      Interest at the rate of 9% or at the rate prescribed by Government, per annum is agreed to be paid by the loanee on the Margin Money Loan outstanding at the time of repayment of such installments commencing from 90 days of disbursement of Margin Money Loan.  Penal interest at the rate of 2¾% per annum is also agreed to be paid by the loanee on all belated payments of both interest and principal installments over and above the normal rate of interest sanctioned above till date of their actual payments.

4.      If the loanee fails to pay the amount when demanded, the Government may recover the same from them in the manner herein provided.

5.      All sums found due to the government under or by virtue of this agreement, shall be recoverable from the loanee and their properties, both movable and immovable, under the provisions of the Revenue Recovery Act for the time being in force as though such sums are arrears of land revenue and in such other manner as the Government may deem fit.

6.      The executants here of on behalf of the loanee hereby declare that they have full power and authority to execute this deed as per resolution …………………. Dated ………………..

IN WITNESS WHEREOF …………………………….. ……………………………… …….……………………….. for and on behalf of the loanee have hereunto set his/her hand on the day, month and year first above written.

Signed by …………..

In the presence of witnesses:

1)

2)

 APPENDIX – V

 ACKNOWLEDGEMENT OF RECEIPT

(Department’s copy)

Margin Money Loan on Marketing outlets for SSI Products

 Ref. No.

 Received today an application from M/s. ……………………………… for margin money loan with full enclosures:

1.      Fully filled in application with original chalan for the fee remitted.

2.      Self attested copy of Order of Approval of the Director of Industries and Commerce.

3.      Copy of Memorandum and Articles of Association.

4.      Copy of Registration Certificate form the Registrar of Companies.

5.      Self attested copy of Board of Resolution authorising applicant to sign the application and other documents.

6.      Recommendation of financing institution / bank.

7.      Copy of loan sanction order attested by financing institution/bank.

8.      Copy of project report attested by financing institution/bank.

Please quote Ref. No. given at the top in all further correspondence on this matter with us.

Date of receipt:         ;                  Signature, name and Designation of

Place:           &nbs p;            ;                          ;    Receiving Officer

Tick ( ) against enclosures received and (x) against those not received.  Note that items 3, 4 and 5 are applicable only for consortiums / companies.  Return immediately where any of the necessary enclosures are missing.

 ----------------------------------------------- ------------------------------------------------------------------------- ---------------------

ACKNOWLEDGEMENT OF RECEIPT

(Applicant’s  copy)

Margin Money Loan on Marketing outlets for SSI Products

 Ref. No.

 Received today an application from M/s. ……………………………… for margin money loan with full enclosures:

1.      Fully filled in application with original chalan for the fee remitted.

2.  Self attested copy of Order of Approval of the Director of Industries and Commerce.

3.  Copy of Memorandum and Articles of Association.

4.  Copy of Registration Certificate form the Registrar of Companies.

5.  Self attested copy of Board of Resolution authorising applicant to sign the application and other documents.

6.  Recommendation of financing institution / bank.

7.  Copy of loan sanction order attested by financing institution/bank.

8.  Copy of project report attested by financing institution/bank.

Please quote Ref. No. given at the top in all further correspondence on this matter with us.

Date of receipt:                        Signature, name and Designation of

Place:                                        Receiving Officer

Tick ( ) against enclosures received and (x) against those not received.  Note that items 3, 4 and 5 are applicable only for consortiums / companies.  Return immediately where any of the necessary enclosures are missing.