FREQUENTLY ASKED QUESTIONS
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Frequently Asked Questions
  • What is WBFC ?
  • For what is the loan granted ?
  • Who can apply for the loan ?
  • How much loan does wbfc grant ?
  • What is the rate of interest ?
  • From when is the interest calculated ?
  • When are the interests payable ?
  • Repayment period ?
  • When does the repayment start ?
  • How is the quantum of loan determined ?
  • What is project cost ?
  • Who finances the rest of the project cost ?
  • Is the loan disbursed in one stroke ?
  • What are the securities to be offered against the loan ?
  • Is any additional cash security required ?
  • When are the securities released ?
  • What are the activities eligible for getting loan ?
  • Is there any prepayment fee ?
  • What are fees payable ?
  • The first step you need to take for getting a loan ?
  • What other services does WBFC render apart from providing loans ?
  • Who to call on at WBFC ?
  • Will WBFC mind if we call your officers to our office ?
  • How long does it take for getting the sanction ?
  • Current Rate of Interest?


  • What is WBFC ?
    A state level financial institution catering to the financial needs of all industries as well as those of service sectors on easy and tailor-made terms. Yours may be a tiny, small or medium scale industry service sector existing or proposed - anywhere in the state of West Bengal. TOP
     
    For what is the loan granted ?
    You can avail of loans for acquiring land, building, plant & machinery, electrical equipment, miscellaneous fixed assets, furniture, etc. as also for meeting a portion or the whole of the working capital requirement of your enterprise. TOP
     
    Who can apply for the loan ?
    Any individual, partnership firm, corporate body or registered co-operative society. TOP
     
    How much loan does wbfc grant ?
    Upto 5.00 crore per project, if you are a corporate body or a registered co-operative society. For others it is Rs. 2.00 crore. Under special circumstances the limits may go upto Rs. 20.00 crore and 8.00 crore, respectively. TOP
     
    What is the rate of interest ?
    Interest rates are as follows.The stated rates may undergo changes from time to time, as may be directed by the competent authority. TOP
     
    From when is the interest calculated ?
    From the date of disbursement of the loan. TOP
     
    When are the interests payable ?
    On 30 June, 30 September, 31 December and 31 March every year, during the tenure of the loan. TOP
     
    Repayment period ?
    Long (Maximum : 10 years) and tailor-made, according to the nature, size, repayment capacity of your project as also the quantum of the loan. TOP
     
    When does the repayment start ?
    Normally after 12 to 24 months form the date of first disbursement of the loan, in quarterly instalments. In certain cases it starts after six months. TOP
     
    How is the quantum of loan determined ?
    The loan quantum depends, primarily, on the project cost. It ranges between 50% to 75% of the project cost, depending on the size and nature of the project, category and financial strength of the borrower, repayment capacity of the project,risk factors etc. TOP
     
    What is project cost ?
    The total cost of fixed assets viz., land, building, machinery, electrical, furniture, preliminary expenses etc. together with the margin money required for working capital requirement constitute the project cost. TOP
     
    Who finances the rest of the project cost ?
    The promoters, and this is known as promoters' contribution. TOP
     
    Is the loan disbursed in one stroke ?
    Depends on the situation. Normally the loan is disbursed in stages with the progress of implementation of the project and in proportion with the quantum of promoters' contribution raised. TOP
     
    What are the securities to be offered against the loan ?
    Depending on the category and purpose of the loan, the fixed and/or the current assets created shall be mortgaged and/or hypothecated in favour of the Corporation, having first charge in its favour. TOP
     
    Is any additional cash security required ?
    Apart from the personal guarantee of the owners of the enterprise, a small amount of cash security in the form of pledging of NSCs / KVPs/ Bank FDs / LIC policies or mortgage may be insisted upon- depending upon various aspects like risk factor etc. - as a percentage of the loan sanctioned. Such percentage shall, however, vary from case to case. TOP
     
    When are the securities released ?
    On full liquidation of the loan along with interest and other costs thereon TOP
     
    What are the activities eligible for getting loan ?
    Any type of industrial or service sector activity (excluding trading), including hotels, nursing homes, transport, commercial complex, infrastructure, consultancy services, floriculture, and a host of others. TOP
     
    Is there any prepayment fee ?
    Yes. TOP
     
    What are fees payable ?
    An one time payment @ 0.50% p.a of the amount of loan sanctioned is payable as commitment, legal and processing fee
    @ 0.50% and legal-cum-service charges @ 0.40%.
    TOP
     
    The first step you need to take for getting a loan ?
    Prepare a project report and call on us at any of our branch offices (we have one for each district) or at the HO at 12A Netaji Subhas Road, 3rd and 4th floors, Kolkata 700001. TOP
     
    What other services does WBFC render apart from providing loans ?
    Our Consultancy Cell prepares project report, imparts technical & financial consultancy and renders help in securing clearances from other institutions, against nominal fees. TOP
     
    Who to call on at WBFC ?
    The General Manager ( Operations ) at HO or the Branch Managers at the branch offices. TOP
     
    Will WBFC mind if we call your officers to our office ?
    WBFC would be glad to discuss any loan proposal right with you at its state offices. However should circumstances warrant, we may also call on you. TOP
     
    How long does it take for getting the sanction ?
    Every endeavor, with your active cooperation, shall be taken to sanction the loan in the quickest possible time. TOP
     
    Current Rate of Interest?
    .
     
    Loan Limit
    Interest Rate
    1 Loans upto Rs. 5 lakh
    10.00%
    2 Loan above Rs. 5 lakh & upto Rs. 25 lakh
    11.00%
    3 Loan above Rs.25 lakh
    12.50%
    4 Additional interest for repayment period greater than five years (Including the period of moratorium)
    0.25%
    5 Additional interest on schemes not covered under refinance that will be charged extra over and above the corresponding rate where refinance is available

    1.00%

    6 Penalty in the event of any default in payment of the dues, on the default amount for the
    period of default that will be charged additionally in the loan account(s).
    2.00%
     


    TOP

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