There are three reasons why loans under SREUP are attractive to RMG factory owners and their finance heads.

An Attractive Interest Rate

The loans under SREUP come capped at 7% per annum

It is at least a few percentage points lower than other loans that companies in the RMG sector have access to for meeting their capital expenditure needs.

Medium-to-Long Term Tenure

The loans offered have a tenure of 3 to 5 years. The tenure can be extended to 7 years in some cases.

This will help RMG factories make long term investments without using funds that are needed to meet short- term working capital needs.

An Incentive Grant on Project Completion

The incentive grant is received on the total loan amount and is received when the project is successfully completed

The company does not have to wait till the loan repayment to obtain the incentive. The incentive grant leads to a significant reduction on an already low interest level.