Madhya Pradesh Financial Corporation
Madhya Pradesh Financial Corporation is the premier institution of the state, engaged in providing financial assistance and related services to small to medium sized industries. Also, it is registered as Category-I Merchant Banker with Securities Exchange Board of India and setup a separate merchant banking division in the name of MPFC Capital Markets.
Incorporated in the year 1955,under the State Financial Corporation Act, 1951 (No. LXIII of 1951), it works under the control of the Board of Directors, consisting of representatives from State Government, Small Industries Development Bank of India, Reserve Bank of India, Scheduled Banks, Insurance Companies, Co-operative Banks and other shareholders.
MPFC is a well knit organisation with its head quarters at Indore - the industrial hub of Madhya Pradesh, and 20 offices at different places.
SERVICES
M P Financial Corporation has been providing financial assistance to industrial units in the state of Madhya Pradesh for the last five decades. It has been extending wide ranging fund and non fund based services. A number of new schemes for providing financial assistance and services to industries, professionals and other business associates have been sucessfully introduced by the corporation.
Our fund based schemes are available for setting up industrial/business ventures within the state of Madhya Pradesh.
Whereas, our non fund based schemes are available throughout India.
TERM LOAN
Term loan is provided for the purpose of creation of fixed assets(such as land, factory building, plant and machinery, electricals etc.), for setting up of new unit and for mordernisation, diversification, expansion, and/or replacement of equipments in existing units.
Finance is provided to new industrial units. It is also provided to Hotels, Service Industries, Transportation, R & D activities.
The maximum limit of assistance to non-corporate sector is Rs. 200.00 lacs and for corporate sector it is Rs. 500.00 lacs.
Period of assistance depends upon merits of the case ranging between 5-8 years.
EQUIPMENT FINANCE
Assistance is available for acquiring identifiable and new items of plant & machinery, equipments etc.
It is available to industrial concerns in existance for atleast 4 years, earning profits/declaring dividend on its share for preceding two years and are not in default to institutions/banks in payment of their dues dues.
Maximum amount available is 77.5% of the cost of the machine - restricted to Rs. 90.00 lacs per proposal.
The overall debt equity ratio (including the assistance under the scheme) should not be more than 2:1.
FINANCE FOR PROFESSIONALS
Term loan is available for setting-up professional practice/consultancy venture, for the first time or for acquiring additional equipments in exisiting setup.
It is provided to professionals in the field of management, accountancy, medicine, architecture, engineering etc.
The cost of project should not exceed Rs. 10.00 lacs, of which land/building should not be over 50% of the total outlay.
Repayment should be done within 5 years.
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