Objective
- State Bank had introduced LTFF to promote export led industrial growth in the country. Through this facility exporters are facilitated by providing subsidized financing for setting up of export oriented projects and modernizing their plant & machinery.
Salient Features:
- Financing is available for local purchase and import of new plant, machinery, equipments and generator / captive power plant.
- Financing is available to the export oriented projects only having annual exports equivalent to US$ 5 million or 50% of sales, whichever is lower.
- Financing also available to new projects on the basis of projected exports. New projects are required to meet the minimum export target of LTFF on staggered basis in four (04) years
- Financing is available against Letter of Credit only to the extent of the CiF value of imported machinery
and ex-factory showroom price of locally manufactured machinery. - Eligible Sectors are textile & garments; rice processing; leather & leather products, sports goods, carpets & wools; surgical instruments; fisheries poultry & meat; fruits / vegetable & processing, cereals; I.T.-software & services; marble & granite; gems & jewellery; engineering goods; ethanol; furniture; pharmaceutical; glass; and dairy sector.
Maximum Financing Limit and Repayment
- Maximum borrowing limit for a single export oriented unit is Rs 1.5 billion under LTFF
- Financing is available for a maximum period of 10 years including a maximum grace period of 2 years.
- Principal amount of loans is repayable in equal quarterly / half yearly installments after prescribed grace period, if any. Mark-up is payable or quarterly basis
Mark-up Rate:
- Financing is available at mark-up rate of 6 percent per annum
