Cash Credit Limits
As a part of financial support to DCCBs, TNSC Bank, upto 31.3.2015, had sanctioned cash credit limits to DCCBs for non-agricultural purposes to the tune of Rs.3137 crore. The total outstanding under the above cash credit accounts as on 31.3.2015 amounted to Rs.1081.90 crore as against Rs.1676.25 crore as on 31.3.2014. Fall in the price of gold in the market and low credit off take from DCCBs due to surplus funds are the reasons for decrease.
Financing of Sugar Mills – Cash credit limits to DCCBs
For the Sugar Season 2014-15, TNSC Bank has sanctioned cash credit limits to Sugar Mills under consortium finance for working capital purpose to the tune of Rs.83.58 crore and the outstanding as on 31.3.2015 was Rs.1.96 crore. The sugar mills have under-utilised the limit due to instant sale of sugar produced and the ways and means support from the State Government.
Scheme of Extending Financial Assistance to Sugar Undertakings (SEFASU) 2014
In order to help the sugar mills to settle the cane dues to the sugar cane farmers, the GoI announced the Scheme for Extending Financial Assistance to Sugar Undertakings (SEFASU) 2014. Under the scheme, TNSC Bank, along with 11 Leader Banks / DCCBs, have sanctioned medium-term loans to 17 sugar mills to the tune of Rs.104.01 crore. The period of repayment is 5 years with a moratorium period of 2 years. The sugar mills are eligible for interest subvention @ 12% p.a. for the entire period of loan, i.e., 5 years.