1. The total tenure of the loan to be advanced in any given year is 13 years. There will be a moratorium on the principal for a period of 5 years. Commencing from 6th year, the outstanding principal is to be repaid in 16 equal half yearly installments. The first half yearly installment shall fall due on the last day of the 66th month from the date of disbursement of loan and at half yearly intervals thereafter.



2. The loan will carry interest @ 1.5% p.a. above the 10 year G-Sec rate (currently around 8% p.a.) prevailing on the date of sanction of the loan. This rate will be reset once in two years on the anniversary date of disbursement of the loan. Penal interest will be levied from the due date @ 3% on the defaulted amount for the delayed period.



3. The interest shall be payable separately on the expiry of every 6 months from the date of disbursements of the loan.

OTHER TERMS AND CONDITIONS :-

1. Contribution to Default Reserve Fund:
   
   The SPTF would be creating a default reserve fund to mitigate defaults by borrowers.
   
   
   • Each borrower would have to pay one quarter's interest in advance calculated on the amount of loan sanctioned to be credited to the Default Reserve Fund at the time of disbursal of loan. This advance payment will be adjusted against the last 3 interest payments and the balance amount if any would be refunded to the borrower after full repayment of the loan.
   
   
   
   • Each borrower would have to pay one quarter's principal repayment (equivalent to 1/32 of the amount of loan sanctioned) in advance at the beginning of the 61st month from the date of disbursement of the loan. This advance would be adjusted against the last half yearly installment due.
   
   
   
2. Distribution of profits:
   
   During the tenure of the loan period, the loanee shall undertake not to pay dividend or distribute annual profits beyond the following limits, without the prior consent of the SPTF.
   
   
   1. Where the loanee is a company other than a company governed by the provision of the Sec. 23A of the Income Tax Act, 1922 or Sec. 104 to 109 of the Income Tax Act, 1961 in excess of the average dividends declared during the preceding 5 years.
   
   
   
   2. Where the loanee is a company governed by the provision of Sec.23A of the Income Tax Act, 1922 or Sec. 104 to 109 of the Income Tax Act, 1961 in excess of the profits or dividends required to be distributed under the applicable section.
   
   
   
   3. Where the loanee is an individual or a partnership firm, in excess of the average profits distributed or utilized in the opinion of the Board outside the concern during the preceding 5 years.
   
   
   
3. Loan Processing Fee:
   
   One time loan processing fee @ 1% of the sanctioned loan amount, subject to a minimum of Rs.15,000/- (Rupees fifteen thousand only) per application will be charged at the time of disbursement.



4. Audited Accounts for the expenditure incurred for R&R:
   
   The loanee shall submit an annual expenditure statement duly audited by the statutory auditors for the company. A progress report relating to the status of replanting / replacement planting/rejuvenation should also be furnished indicating therein that the loan availed from the SPTF has been appropriately utilized for the purpose for which it was advanced.




5. Incidental expenses:
   
   The entire expenses incurred on Stamp duties, registration fees or any other expenses incurred in connection with preparation of post planting maps, execution of loan agreement and other deed of conveyances/contracts for the purpose of SPTF loan shall be borne by the applicants.