Term Loan & Machinery Finance
Term Loan structuring and machinery acquisition finance for new industrial plants, factory expansion, and commercial equipment purchase by B. Mallesh & Co., Chartered Accountants.
1. Term Loan Structuring Parameters
Term loans are long-term credit facilities granted by commercial banks and state financial corporations (e.g. TSIIC, SIDBI) for capital expenditure. Repayment tenures range from 3 to 10 years with a moratorium period (grace period) during construction.
Promoter Margin Contribution
Commercial banks require promoters to contribute 15% to 25% of the total project cost as equity margin.
Asset Coverage Ratio (ACR)
Primary security (machinery & factory land) plus collateral security must provide an Asset Coverage Ratio of at least 1.25x to 1.5x.
2. Mandatory Document Checklist
Required Records for Term Loan Sanction
- Detailed Project Report (DPR) with financial projections
- Original Machinery Proforma Invoices & Quotations
- Building Civil Work Approved Estimates
- Promoter Net Worth & Income Tax Returns
3. Step-by-Step Loan Processing Timeline
Step 1: DPR Preparation & Technical Appraisal
Drafting bankable DPR, evaluating machine specifications, and verifying debt servicing capability.
Step 2: Bank Sanction & Disbursement Facilitation
Representing project before bank credit committee and assisting with stage-wise loan disbursement.
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Mancherial Office Contact
B. Mallesh & Co., Co. Laxmi Theater, Indra Nagar, Mancherial, Telangana - 504208