This is Chitratara.com exclusive story! The Kannada films are banking on the bank loans first instead of capitalizing on the contents, need of the hour to attract the audience etc.
The Industrial Development Bank of India (IDBI) right from the Kannada film ‘Thayiya Madilu’ has released Rs.50 crore plus towards loan to Kannada film producers. The rate of interest charged is 1.3 percent that is more than fifty percent less when compared to Gandhinagar rate of interest.
The IDBI loan is given from Rs.2 to Rs.3 crores for producers like S.Narayan, Rockline Venkatesh, S.V.Rajendra Singh Babu, Vijayalakshmi Singh, Vajreshwari Combines, Saiprakash, Ashwini Ramprasad, Kuppuswamy, Suresh Gowda, Ramesh Yadav and others.
For a loan of Rs.2 crores the calculated rate of interest for six months is Rs.12.50 lakhs where Gandhinagar for six months charges Rs.36 crores. The top rated Gandhinagar financiers are Shailendra Babu, Niranjan, Basha, Pal Chandani, K.V.Nageshkumar, Udayaranga Subramania and others.
This legal form of taking loan is immensely liked by the Kannada producers and the main criteria for giving loan is that a concerned producer should have produced five films. The applications at IDBI office in Mumbai are scrutinized and then pushed to Bangalore office for clearance. Before the release of the film the loan has to be cleared is another important condition put before the producers.
After scrutinizing the applications such as credentials of the producer, script, payment list, shooting schedule, post production details the bank authorities clear the loan. The loan is given on the negatives rights of the film and remitting the monthly interest is a must.
The sources in the Kannada filmdom say the system of IDBI is very legal and it is much appreciated. There are 10 members committee that would look in to the details before sanctioning loan. The newcomers are not given preference in sanctioning loans. The project report cost of production and market survey is conducted. As of now the IDBI loan is not given for all the Kannada cinema heroes.