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Financial Products

Other Financing

TFCI provides all forms of financial assistance for new, expansion, diversification, renovation / modernization projects in industrial / manufacturing sector, real-estate sector on selective basis, services sector and related activities, facilities and services.

Infrastructure, Manufacturing and Other Sectors

Hotel Transport
Hotel Energy
Hotel Water and Sanitation
Hotel Communication
Hotel Social and Commercial Infrastructure
manufacturing Manufacturing / Others

Types of Financial Assistance

  • Rupee Loans (including short-term, medium-term & long-term loans).
  • Corporate Loan (including against security of listed shares and immovable properties).
  • Take over financing or Refinancing.

Norms for Financial Assistance for Infra Projects

TFCI will provide finance to all types of projects in state & private sector either directly or indirectly and whether wholly or in part working for the purposes of infrastructure development work or providing infrastructure facility or engaged in infrastructure activities.

Core Promoters’ Contribution

The minimum core promoters’ contribution is 25% of the project cost. Relaxation is allowed upto 20% in respect of large projects involving capital cost, exclusive of the cost of land for the project, of more than Rs.500 crore.

Flexible Structuring of Long-Term Project Loans to Infrastructure Sector

TFCI, while assessing the viability of long term projects, is allowed to accept the project as viable where the average DSCR and other financial parameters are acceptable over longer amortization period of say 25 years, but provide funding for only, say, 5 years with refinancing of balance debt being allowed by TFCI or new lenders or even through bonds. The refinancing after each of these 5 years would be of the reduced amounts determined as per the original amortization schedule. TFCI shall adopt / follow the above mentioned RBI norms for flexible structuring of long-term infrastructure project loans.

Norms for Financial Assistance in Other Sector Projects

The borrower company should be profit-making with satisfactory credit record. In case of rated companies, the minimum rating should be ‘BB’. The maximum permissible debt-equity ratio would be 2:1 and average DSCR for the tenure of loan should minimum be 1.5:1. The security cover by means of mortgage of immovable assets and / or by way of pledge of listed shares should be atleast 2 times and / or 2.5 times respectively of the loan. The interest rate could be both variable and fixed, with or without linking to Base Rate of TFCI. However, the same should be based on TFCI’s borrowing portfolio, market conditions and track record of the borrower / company ensuring a higher interest yield than in funding of tourism & infrastructure projects.

Norms for Financial Assistance for Takeover Financing

TFCI may consider financing well-established concerns having 3 years’ of satisfactory credit record for refinancing of existing loans and / or takeover / refinancing of loans of tourism-related viable / potentially-viable projects on the basis of the following:

  • Such loans should be ‘standard asset’ in the books of the existing lender(s) and should be substantially taken-over or refinanced.
  • The average DSCR for the proposed project / concern should be at least 1.5 and the account should not be irregular with existing lender(s).
  • All other norms for financial assistance as debt-equity ratio, promoters’ contribution, repayment schedule taking into account project life cycle and cash-flows, applicable interest rate etc. may be observed.

Debt-Equity Ratio

Infrastructure Projects:
TFCI may extend term loan assistance based on debt-equity ratio upto 4:1 depending upon the debt-service coverage ratio for the project and the financing norms being followed by other lenders.

Other Projects:
The maximum permissible debt-equity ratio would be 2:1.


  • 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.
  • State / central government or bank guarantee or charge assets for state and central sector entities, while charges on project assets for others.
  • Where project assets cannot be mortgaged / hypothecated, charge on the cash flows through escrow mechanism and annuity system may be taken.
  • Tripartite Escrow Agreement among the borrower, TFCI and other lenders in case of state and central sector entities while Trust and retention Account mechanism for others.

Repayment Schedule

The repayment of the loan shall be over a period of 12-15 years after allowing moratorium upto 2 years from the date of commencement of commercial operations. However, in case of projects on BOT basis, the door-to-door tenor of the loan shall not exceed 75% of the total concession period granted under the project scheme.

Rate of Interest

TFCI charges floating rate of interest on loan(s) linked to its base rate which is presently as hereunder:

11.60% p.a. for loans upto 3 years

11.70% p.a. for loans having maturity of 3-5 years

11.80% p.a. for loans having maturity above 5 years

The applicable interest rate is worked based on rating of the borrower either from an approved external rating agency or through internal rating mechanism.  The loans are considered to borrowers upto minimum rating of 'BB'. The applicable interest rate matrix for eligible borrowers, based on external or internal rating, is as follows: 

Based on Internal Rating Based on External Rating
Rating by TFCI [Internal] Applicable Interest Rate External Rating Agency [External] Applicable Interest Rate
AAA Base Rate AAA Base Rate
AA Base Rate + 0.20% p.a. AA Base Rate + 0.15% p.a.
A Base Rate + 0.50% p.a. A Base Rate + 0.30% p.a.
BBB Base Rate + 0.75% p.a. BBB Base Rate + 0.50% p.a.
BB Base Rate + 1.25% p.a. BB Base Rate + 1.00% p.a.
  • In case of loan to real-estate sector, an additional premium of 100 basis point shall be charged.
  • In case of consortium lending rate charged by other lenders subject to minimum of TFCI base rate shall be charged.
  • Credit Policy 2016-17