Maharashtra State Financial
is a statutory Corporation set up under the State
Financial Corporations (SFCs) Act, 1951.
State of Maharashtra (since 1962), State of Goa and
the union Territory of Daman & Diu
To provide mainly the term loan assistance to small
and medium scale industries for acquiring fixed assets
like land, building, plant & machinery. Loans are
presently extended for expansion, diversification,
technology development, enlarging product mix / product
range, quality improvement including ISO 9000 series
certifications and also for Take-Over of Term Loan
accounts from Banks . otherFinancial Institutions in
case of good borrowers of the Corporation.
FEE BASED ACTIVITIES :
Preparation of Project Appraisal / Feasibility
ORGANISATIONAL STRUCTURE :
Besides the Head Office at Mumbai (Bombay), MSFC has
7 Regional Offices and 12 Branch Offices in
Maharashtra and Goa.
The Regional Offices are located at Aurangabad,
Kolhapur, Nagpur, Nashik, Pune & Thane in
Maharashtra and at Panaji in Goa. The Branch Offices are
located at Ahmednagar, Akola, Amravati, Beed,
Chandraupr, Chiplun, Jalgaon, Latur, Nanded, Sangli,
Satara and Solapur.
i) Industrial Activities such as
manufacturing, assembling, servicing, processing,
setting-up industrial estates, etc.
ii) Activities such as Nursing Homes, Hotels,
Restaurants, Tourism Related Activities
iii) Medical Practitioners are eligible for loan for
acquiring Electro Medical and other equipment for
iv) Qualified Professionals in Management, Engineering,
Architecture, Accountancy etc desiring to undertake
expansion of their professional
practice / consultancy ventures.
v) Other Service Activities declared as eligible
under the SFCs Act.
vi) Proposed :
Multiplexes, Marriage Halls, Group Housing / Residential
The Small Scale Industrial Units should have SSI
Registration while Service Enterprises should be
the appropriate authority.
LOAN LIMIT : Rs. 5 Crore.
QUANTUM OF ASSISTANCE :
While deciding upon the quantum of loan, minimum
promoters contribution and the prescribed Debt Equity
(DER) are taken into consideration. Higher margin and /
or shorter repayment period may be insisted depending
upon the nature and rate of technological obsolescence
and the risk perception for the project.
DEBT EQUITY RATIO (DER)
Permissible DER for the project is upto 2:1
depending upon the loan amount, nature of assets and
risk perception but DER upto 1:1 may be insisted upon
keeping in mind viability and collateral security.
"Equity" includes promoters' contribution,
share capital, seed capital, State Govt. subsidy,
portion of accruals, deposits / interest free unsecured
loanss (Quasi Equity) raised by the promoters etc.
"Debt" includes long term loans, deferred
PROCEDURE FOR SANCTION OF LOAN :
The loan application forms are available free of charge
which are to be submitted to the concerned Regional
duly filled in with required additional particulars.
Preliminary clearance for further processing of the
given after scrutiny of the proposal and interaction
with the promoters by the Screening Committee at the
Regional Office or at the Head Office depending upon the
loan amount. Detailed Technical and Financial Appraisal
of the proposal for the loan is submitted to the
Appropriate Authority for sanction of the loan.
Loan upto Rs.10 Lakh
0.7% of the amount sanctioned
above Rs. 10Lakh
1% of the amount sanctioned subject to the
maximum of Rs.1 Lakh
OF LOAN :
Loan amount is disbursed after the promoters have
complied with the terms & conditions stipulated in
Disbursement is made in stages depending upon the fixed
assets acquired / created. Promoters have to furnish
necessary documents, valuation reports and Chartered
Accountant's Certificate in the prescribed format to
the expenditure incurred. Physical verification of the
assets acquired / created is carried out before
The disbursement amount is released by keeping the
margin stipulated on the value of the specific assets
completion of the legal formalities / documentation.
i. Prime security in the form of fixed assets viz.
land, building, plant & machinery financed by the
ii. Collateral security depending upon the type of
project, location, technological obsolescence, risk
INTEREST RATES :
As may be decided by the Board of Directors of the
Corporation from time to time. Presently the rate of
interest is 13 % with 1.5 % incentive for prompt payment
of principal installments and interest on due dates.
Repayment schedule is fixed on the basis of the debt
servicing capacity of the project. Maximum 8 years'
repayment period inclusive of the moratorium period up
to 2 years from the date of first disbursement is given.
For certain schemes shorter repayment period is
prescribed. Only interest payment commences during the
For repayment of Principal : Quarterly Installments.
For payment of interest :
(Till March - 2004)
No. of Units Assisted
Share of SSI Sector (Numberwise)
Rs. 6672 crore
United India Building, 1st Floor, Sir P. M. Road, Fort,
Mumbai - 400 001
* Tel. : (022) 22691911 / 12 / 13 / 14 * Fax
: (022) 22691915
* E - Mail : email@example.com * Web :
REGIONAL OFFICES :
* Mumbai - Konkan * Thane, Daman & Diu * Pune *
Nashik * Kolhapur * Aurangabad
* Amravati * Nagpur and * Panaji (Goa)