Hyderabad: The biggest trouble for the film producers is paying interests to the financiers. The interest rates generally start from Rs.1.5 and based on the necessity it will go around Rs.3. But if it is an emergency interest, it will be beyond Rs.5.
Well, as the loan amounts are in crores, the interests will be in lakhs. In case of big production companies, they avail bank loans to some extent. They will also have some rotation money. But still they have to depend on some private financiers. Every company that has on going projects, will certainly depend on some private finance.
There is also an informal term called political finance. This is the money that has been earned in the politics. The financiers give this kind of finance only to the known people in closed circles. The interest for this kind of loans is said to be reasonable.
The principle amount will remain the same but the the producers will pay the monthly interest until the release.
Now, it is very difficult to pay monthly interest in this corona crisis. Usually, there will be finance settlements after the completion of the film and just before the release. But all the projects are delayed now.
Taking note of the situation, the bigwigs in the industry are said to be requesting financiers to waive off the interest for at least two months. The financiers are responding positively as per the information.
If the discussions are fruitful then the producers will heave a sigh of relief for sure. If we roughly estimate the finance amount on the ready to release films, the films that are in post production stage, the amount will be around Rs 100 Cr. If we calculate the interest on this hundred crores..?
Well, the immediate mission of the Producers Guild would be to try for the loan waiver now.
