• Rupee Loan
  
• Underwriting of public issues of shares/debentures and direct subscription to such securities
• Guarantee of deferred payments and credit raised abroad.
• Equipment Finance
• Equipment Leasing
• Assistance under Suppliers' Credit
• Working-Capital Financing
• Takeover Financing
• Advances Against Credit-Card Receivables
  

TFCI provides financial assistance to projects with capital cost of Rs. 3 crore and above. In respect of projects costing between Rs. 1 crore and Rs. 3 crore, TFCI will consider financial assistance to the extent of unavoidable gap, if any, remaining after taking into account assistance from State Level Institutions/Banks. Unique projects, which are important from the tourism point of view and for which assistance from State Level institutions/ Banks is not available, may be considered on exceptional basis even though their capital cost is below Rs. 1 crore. Financial assistance is considered on similar lines for heritage and restaurant projects. Projects with high capital cost may be financed along with other All-India Financial/Investment Institutions. TFCI considers assistance even if the total cost is less than Rs. 3 crore for existing concerns with satisfactory performance for renovation/upgradation etc.


Promoters' Contribution

The minimum promoters' contribution for the projects is 30%. Relaxation may, however, be allowed in respect of large projects involving capital cost exceeding Rs. 50 crore.


Debt Equity Ratio

TFCI extends term-loan assistance based on debt-equity ratio not exceeding 1.5:1. However, in case of hotels in seasonal locations/ multiplexes/ entertainment centers, amusement parks and other tourism-related projects, the debt-equity ratio would be stipulated in the range of 1:1 to 1.25:1.


Rate of Interest

Interest on loan is flexible and linked to the PLR of TFCI which is  presently 12.5% p.a. (since 1st August 2008). TFCI, while considering loans to the borrowers, evaluates each concern individually on various parameters such as Industry/ Business Risk, Environmental Risk, Project Risk, Management Risk, Security available, Income value to TFCI, etc. and accords rating ranging from AAA to B category. Loan is priced according to the prevalent PLR and the rating so achieved by the individual client within a spread ranging from PLR to PLR+1.5% per annum. High Risk Projects are charged interest at PLR+3% per annum. Interest is levied on monthly rests. In case of consortium/ multiple funding, if higher rate is charged by any other institution than the same rate is applicable to TFCI loan also. Besides, TFCI also charges appraisal-cum- up front fee @ 1% of the loan amount sanctioned as one time charge.

Security

First charge on movable and immovable fixed assets. Personal Guarantees of the Promoters and Corporate guarantee of the group concern, if necessary. Pledge of promoters' share-holding.

Repayment Schedule

This would depend on the period required for completion of the project and stabilisation of operations as also the projected cash-flows available for debt-servicing. The general norm of repayment is 8 years allowing moratorium of 2 years after full commercial operations. In case of multiplexes/ entertainment centers the cash-flows in the initial years are satisfactory; as such, the repayment of the loans to this sector could be made in 6-7 years allowing moratorium of 1-1½ years after full commercial operations.


Norms for Takeover Financing

TFCI may consider financing well-established, assisted concerns having over 3 years' satisfactory track record for takeover of tourism-related project/company.


Norms for Working-Capital Financing

The Working Capital assistance would be provided to concerns in the tourism sector with proven track record of atleast 3 years and assisted concerns of TFCI with satisfactory credit record. The working capital limit would be calculated based on the turnover method as may be considered appropriate.