Debenture Save PPR For Free

The Bounce Back Loan Scheme enables businesses to obtain a six-year term loan at a government set interest rate of 2.5% a year.

If you are changing to a new bank or lender, then your Bounce Back Loan Scheme facility will need to be repaid or retained with your original lender. It is not transferable to your new finance provider.

A loan must be paid back by a set date and must be secured against something of equal value. A debenture doesn't need to be taken out against something of equal value, simply something deemed sufficiently valuable, which is why they can be secured against something variable like inventory.

When you enter liquidation, the Bounce Back Loan becomes an unsecured debt, as the loan is not secured against company assets. Unsecured debts are rarely paid in full on liquidation. In that case, as the Bounce Back Loan is secured by the government, the lender will pursue the government for repayment in full.

Step 1: Convene the Board Meeting and Pass the Board Resolution for authorizing issue of debentures and approval of Letter of Offer in form PAS-4. Step 2: E-Form MGT-14 shall be filed by the Company within 30 Days of passing Board Resolution. (Note: Filing of E-Form MGT-14 is exempted in case of Private Companies).

Term of Issue Secured debentures cannot be issued for a period more than 10 years from the date of issue. Following class of companies may issue debentures for more than 10 years but not exceeding 30 years: Companies engaged in setting up of infrastructure projects.

No, as the law requires every company which issues debentures to create a minimum of 10% of the value of outstanding debentures as DRR.