The Fund shall give a guarantee for a maximum 50% of the loan, subject to the principal amount actually disbursed, provided, by the PFI and in case of EE account becoming NPA, the fund shall
• Cover the first loss subject to maximum of 10% of the total guaranteed amount
• Cover the remaining default outstanding principal amount actually disbursed amount on pari-passu basis up to the maximum guaranteed amount.
The IA shall finalise the percentage of guarantee for each guarantee facility.
PFI shall take guarantee from the PRGFEE before disbursement of loan to the borrower i.e. ESCO subject to payment of guarantee fees.
The Guarantee for any one project shall not exceed Rupees Three crore (Rs.3crore) per project or 50% of the sanctioned loan amount (subject to the principal amount actually disbursed), whichever is less.
The PRGFEE Guarantees issued in favour of the PFIs shall not be deemed to automatically cover any top-ups or additional loans provided to the Borrower.
Copywrite 2016 PRGFEE | All Right Reserved