Post-Sanction Supervision

Post-Sanction Supervision:

It is not enough to sanction the limit(s) to the units but the bank should also ensure proper utilization of funds and there is no diversion of bank funds for any other purpose other than the one mentioned in the application for loan. The bank should also carry out periodical inspection of the units to ensure that the units are running properly and the loan amount/bank funds are safe. The bank should also ensure regular repayment of installment and interest otherwise; the loan amount given by the bank would turn into Non-Performing Asset (NPA).

Direct Financial Assistance	Indirect Financial Assistance	Special Schemes
Rupee term loans Deferred Payment Guarantee on behalf of the buyer of industrial machinery to the supplier.		Bill rediscounting scheme. Foreign currency term
loans	Guarantee for foreign currency loans obtained by industrial concerns from institutions and bank abroad. Suppliers line of credit to indigenous manufacturers of machinery for selling their equipment on deferred payment terms. Subscription to equity shares. Underwriting equity issues of assisted units, thereby helping the assisted units in raising funds from the capital market. Soft loan scheme. Seed Capital

		quipment finance scheme to industrial concerns for indigenous equipments and also for importing capital equipments.

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