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HDFC Bank to offer credit facilities up to 75 per cent of the project cost to eligible companies/investors of Karnataka Industrial Area Development Board.
To this, the bank recently signed a Memorandum of Understanding (MoU) with the KIADB to provide a wide range of financial products and services to its customers, Arun Aravind, Regional Head, Business Banking & Bullion Business, HDFC Bank, said in a release.
He further said, “Credit facilities includes the costs such as plant and machinery, construction, lease right acquisitions from KIADB (up to 50 percent of the total lease right acquisition cost) and other approved activities which is part of the project, subject to credit analysis of the borrower/investor and subject to HDFC Bank's process, policies and RBI Guidelines. HDFC Bank shall disburse the amount for aforesaid lease right acquisition cost directly to KIADB.”
In addition, KIADB, in its efforts to make the land acquisition for industrial purposes more affordable and attract investments into Karnataka, has agreed to collaborate with HDFC bank so that eligible investor/ customer of KIADB can avail of credit facilities from HDFC Bank as per bank process and policies.
“KIADB nominates HDFC Bank as one of its banking partners to finance its eligible customers/allottees of industrial land/plot for setting up their project, and the Bank accepts the said nomination. The parties hereto shall offer each other from time to time the requisite support and assistance at their sole discretions and without any liability to each other,” N Shivashankara, KIADB CEO said.
As per the MoU, KIADB shall accord approvals related to handing over possession of land and project-related construction as per agreed terms between such allottees / customers and KIADB and take up expediting measures in case of delays.
Furthermore, representatives of both parties HDFC Bank and KIADB, shall meet at their mutually convenient time, discuss and finalise the detailed process guidelines document to achieve the objectives of this MoU. This MoU shall be valid for three years from the date of execution hereof and shall be renewed with both parties' consent for a further term.
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