Presentation on HEFA Webinar NIT

1. Date- 19th August
2021
Time- 2:30 pm

2. ABOUT HEFA
 Higher Education Financing Agency (HEFA) is a joint venture of Ministry of Education, Government of
India and Canara Bank incorporated on 31st May 2017, for financing creation of capital assets in premier
educational institutions in India.
 HEFA is registered under Section 8 [ Not-for-profit] of the Companies Act 2013 as a Union Government
company and as Non–deposit taking NBFC (NBFC-ND-Type II) with RBI. After crossing the asset size of
Rs.500 Cr, it is now a Systemically Important NBFC.
 The paid-up capital of HEFA as on 30.06.2021 is as under;
 HEFA is governed by a Board comprising of eminent and well experienced persons from the
Government, Banking and Education Sectors.
 HEFA has a well-experienced Management team comprising of senior executives on deputation from
Canara Bank.
 HEFA is currently rated AA- (Positive) by ICRA Ltd.
2
Shareholder Amount
(Rs.in cr)
Shareholding %
M H R D 4812.50 90.91
Canara Bank 481.25 9.09
Total 5293.75 100.00

3. Category of
Institution
Window of
Finance
Repayment of Principal Interest Servicing
Technical
Institutions
By Institution By GOI By Institution By GOI
Before 2008 I 100% - - 100%
2008 to 2014 II 25% 75% - 100%
Central
Universities before
2014
III 10% 90% - 100%
Newly Established
after 2014-15
IV - 100% - 100%
Other educational
institutions and
grant-in- aid
institutions of
MoHFW
V - 100% - 100%
Categorization of Windows as per RISE 2022

4. Category Sanctioned
Amount
Disbursed
Amount
No. of
Institutions
No. of Loans
IIT's 12155.73 4495.94 22 48
AIIMS & MoHFW 8588.33 4548.08 12 12
NIT's 2860.07 693.29 17 22
IIM's 2804.09 647.38 7 7
Central Univ. 3450.04 808.39 23 24
Others 2849.29 642.67 16 18
TOTAL 32707.55 11835.75 97 131
DETAILS OF SANCTIONS & DISBURSEMENTS MADE BY HEFA AS ON
31.07.2021
Rs. in Crores

5. NIT
SURATHK
AL
NIT
SURATHK
AL (EWS)
NIT
JAMSHED
PUR
MNNIT
ALLAHAB
AD
MANIT
BHOPAL
MNIT
JAIPUR
NIT
SRINAGA
R
NIT
DURGAP
UR
NIT
CALICUT
NIT
ANDHRA
PRADESH
NIT GOA
NIT
RAIPUR
NIT
TRICHY
NIT
PATNA
NIT
ROURKEL
A
Dr. B R
AMBEDK
AR
NATIONA
L
INSTITUT
E OF
TECHNOL
OGY
NIT
UTTARAK
HAND
SVNIT
SURAT
Sanctioned 165.88 43.00 98.00 124.66 76.00 49.82 85.00 97.00 88.00 275.00 282.39 17.00 72.97 499.21 64.00 63.47 659.37 99.30
Disbursed 92.56 4.30 77.00 66.25 47.45 22.08 0.00 9.20 73.30 249.65 0.00 7.10 28.47 0.00 11.17 4.76 0.00 0
0.00
100.00
200.00
300.00
400.00
500.00
600.00
700.00
NIT's- Sanctions & Disbursements 31.07.2021

6. Submission of Proposal for Project Approval by
the Institutes to Ministry of Education (MOE)
Project Approval of the Institutes by the MOE.
Submission of HEFA Loan Application by the
Institutes.
Technical Appraisal of the Projects of the Institutes
by Canara Bank, Project Appraisal Group (PAG)
Sanctioning of Loan Proposal by Board of HEFA
PROCESS FLOW CHART

7. Sanction acceptance by Institute
Execution of Loan Documents
One advance principal instalment amount escrowed to
Escrow Account No.3
Disbursement of Loan
Monitoring & Repayment of Loan

8. DOCUMENTATION
 KYC documents of Institute & authorized signatories.
 Detailed Project Report Approved by the Ministry/MOE.
 Letter from MOE; committing funds for repayment of principal and interest under general grants OH - 31.
Indicating window under which institution is to be financed.
 Letter of Approval of the project by SFC / EFC / Cabinet
 Balance Sheet & Income and expenditure statement for last 3 years, Current Year estimates & projections for
the proposed repayment period.
 Projected yearly cash flow for the entire repayment period justifying adequate surplus for meeting repayment
obligations.
 Quarterly Loan Drawdown schedule .
List of Documents to be submitted along with Application form by Institutes to
HEFA
List of Loan Agreements to be executed post sanction & pre-
disbursement
 Term Loan Agreement between borrower Institution & HEFA.
 Escrow Agreement among HEFA, borrower Institution & Escrow Banks.
 Deed of Hypothecation between HEFA & borrower Institution.

9. Disbursement & Monitoring
 All fund releases from the loan account shall be against a scanned copy of the written request by
the authorized signatories duly mailed to HEFA and through on-line PMS portal.
 All disbursements from the loan shall be made directly to the CPWD NBCC/ contractor / Vendor/
Implementing Agency / Project monitoring consultant (PMC) against production of copies of bills /
certificate. Disbursement are permitted at the request of the institution, in cases where advance
payments have to be made to CPWD / NBCC/ contractors as per the MOU signed by the institution
with CPWD/NBCC/Contractors against submission of copy of MOU and demand notice.
 Only after receipt of disbursement request supported by related documents from the Borrower
Institution, the eligible amount will be remitted within 48 hours electronically to the Bank
Account of the CPWD / PMC / implementing Agency /identified vendor.
 The institute has to submit Project Progress report to us on quarterly basis through PMS portal.
 The project progress shall also be reviewed / monitored by Project Management Committee ( a
sub-committee of the Board) periodically.
 All projects would be monitored through a dash board/ project monitoring system made available
by HEFA and access will be given to the MOE.
 The Unit / Project shall be inspected by HEFA or their authorized representatives or Canara
Bank, PAG officials, as and when deemed necessary.

10. INSTITUTE
Escrow A/c -
1
Escrow A/c -
2
Escrow A/c -
3
Escrow A/c -
4
Existing Academic
Receipts/Fee
Receivables
Existing Grant
Receivables
Principal
Repayment
Account – Canara
Bank
Interest payment
Account – Canara
Bank
ON DUE DATE
HEFA Principal
Repayment A/c
HEFA Interest
Payment A/c
INSTITUTE LOAN
ACCOUNT WITH HEFA
ESCROW MECHANISM

11. REPAYMENT
Repayment period of the project loans shall be up to a maximum of 10 years.
Principal
 The principal repayment of the loan shall be in semi-annual installments commencing 6 Months from the date of
first disbursement and subsequent instalments to be repaid every 6 months thereafter.
 Upon receiving the intimation from HEFA and on the date of disbursement, Escrow bank 1 and /or 2 shall debit
the “Fee Receivable account” [ Escrow account 1] and/or “Grants receivable account” [ Escrow account 2]
individually or together to the extent of prescribed percentages [ based on the window under which the borrower
institution falls ] equivalent to one half-yearly principal repayment and similar amounts every 6 months
thereafter, till closure of the loan account and remit the amount to principal repayment account [ Escrow account
3] maintained with Canara Bank [ Escrow bank 3].
 The Escrow bank 3 is entitled to invest the amount so received in Principal Repayment Account in short term fixed
deposits as per borrower’s instruction, till the period to coincide with the due date of term loan instalment
(project-wise) and on due dates the amount shall be transferred to the HEFA’s ’s account. This amount will be
appropriated towards instalment due in respect of project wise loan accounts.
Interest
 Interest shall be debited to the loan account at monthly rests on compounded basis. The aggregate of such
monthly interest at the end of the calendar quarter i.e. March, June, September and December shall be payable
before 10th of succeeding month viz., April, July, October and January, but not later than 30 days from the
completion of the quarter.
 Upon demand notice from HEFA, Escrow bank 2 shall debit the quarterly interest to “Grants receivables account”
before 10th of April, July, October and January months, [ but not later than 30 days from the completion of
quarter] being the interest debited to the loan account calendar quarterly i.e., as at 31st March, June, September
and December respectively and remit the amount to the interest payment account maintained [ escrow account
4] with Canara Bank.
 Such amount shall be transferred to HEFA’s account at the earliest. This amount will be appropriated to the
quarterly interest due on loan accounts.

12. CONTACT DETAILS
Mr. C. Jayakumar
Managing Director & CEO, HEFA
Email- mdceo@hefa.co.in
Mo.- +916366864493
Tel- 080 22227555
www.hefa.co.in
Email- info@hefa.co.in
Tel- 080 43705895

13. INTERACTION & FEEDBACK