tiic.org Micro/ Small Enterprises Funding Scheme Tamil Nadu : Industrial Investment Corporation
Organisation : Tamil Nadu Industrial Investment Corporation Ltd
Facility : Micro/ Small Enterprises Funding Scheme
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Micro / Small Enterprises Funding Scheme : https://www.tiic.org/tiic-scheme/
Home Page : https://www.tiic.org/
Micro/ Small Enterprises Funding Scheme :
The scheme is to extend financial assistance to New / Existing Units in Micro and Small Enterprises with overall project outlay of Rs.50.00 lakhs.
Related : TIIC Wind Power Project Scheme : www.statusin.in/20483.html
Eligibility:
New Enterprises in Micro / Small scale sector for manufacture, preservation or processing of goods irrespective of location and service sector projects like Hospitals, Fast Food restaurant etc. except Small Road Transport Operators [SRTOs].
Existing Micro and Small Scale Industrial Units and Service Enterprises, undertaking Expansion, Modernization, Technology Upgradation and Diversification irrespective of locations.
3. Purpose: For Creation of Fixed Assets
4. Quantum of Loan:
** For New Units, term loan 80% of Project cost subject to a maximum of Rs.40.00 lakhs will be considered.
** For existing units, term loan of 75% of Project cost subject to a maximum of Rs.37.50 lakhs will be considered.
5. Project Cost: Project Cost shall not exceed Rs.50.00 lakhs in case of New Unit. In respect of existing units, Project Cost including existing project outlay shall not exceed Rs.50.00 lakhs
6. Promoter’s Contribution: The Minimum Promoter’s contribution shall be fixed at 20% of the project cost.
7. Debt Equity Ratio : DER for new Units is 4.00 : 1.00 and for existing units is 3.00 : 1.00.
8. Repayment Period : The loan repayment period shall not exceed 6 years including moratorium of 6 – 24 months.
9. Collateral Security : The collateral security offered shall be stipulated as per the existing policy guidelines.
Lending Interest Rate with effect from 01.12.2015 :
| Sl. No. |
Micro Small Medium Enterprises (MSME) Category |
Interest Rate in terms of PLR |
Interest Rate (in %) |
| 1. | Loans upto Rs.2.00 lakhs including Transport Loan | PLR | 13.50 |
| 2 | Loans Above Rs.2.00 lakhs | ||
| a.. | SMERA Rating & from other Agencies such as CRISIL – Highest | PLR | 13.50 |
|
– High |
PLR + 0.25% | 13.75 | |
| b. | Other Ratings than the above | PLR + 0.75% | 14.25 |
| 3 | (a). Existing assisted clients (including Transport) continuously prompt * / standard category** for 3 years at the time of sanction, OTL etc. | PLR | 13.50 |
| (b). Existing non-assisted units with good track record for Three completed years at the time of sanction. | PLR + 0.25% | 13.75 | |
| 4. | New MSME & Transport Sector including NEEDS | PLR + 0.75% | 14.25 |
| 5. | Other Special Scheme : | ||
| (a) | Micro, Small, Entrepreneur Loan (MSEF) Scheme | PLR + 1.00% | 14.50 |
| (b) | Entrepreneur Development Scheme [EDS] | PLR + 1.25% | 14.75 |
* If the principal and interest demand is paid within the grace period continuously for 36 months or 12 quarterly installments, the unit is classified as Prompt unit.
** If the unit pays the interest and principal demand within 90 days continuously for 36 months or 12 quarterly installments then the unit is eligible for the concessional rate indicated in Standard category.
PLR = 13.50%
| Sl. No. |
Non-MSME Category |
Interest Rate in terms of PLR |
Interest Rate (in %) |
| 1. | Existing clients in Standard / Prompt category continuously for 3 years at the time of sanction. |
PLR + 0.25% |
13.75 |
| 2. | Existing non-assisted units with good track record for 3 completed years. |
PLR + 0.25% |
13.75 |
| 3. | New Non-MSME Term Loan |
PLR + 1.00% |
14.50 |
| Sl. No. |
Other Special Schemes (Irrespective of the size of investment) |
Interest Rate in Terms of PLR |
Interest Rate (in %) |
| 1. | Term Loan to service sector viz., shopping complex, community hall, Kalyana Mandapam, etc. | PLR + 1.50% | 15.00 |
| 2. | My Doctor, Doctor Plus | ||
| i. New Clients | PLR + 0.25% | 13.75 | |
| ii. Existing Clients | PLR | 13.50 | |
| 3. | Wind Mills / Solar Projects | ||
| i. New Clients | PLR + 0.25% | 13.75 | |
| ii. Prompt / Standard for last 3 years | PLR | 13.50 | |
| 4. | Bill Finance Scheme | PLR + 1.50% | 15.00 |
| 5. | Term Loan for replacement of high cost loan |
PLR + 1.50% |
15.00 |
| 6. | Working Capital Term Loan & Single Window Scheme |
PLR + 0.75% |
14.25 |
** Interest is payable on monthly / quarterly rest.
** Other dues will carry an interest rate that is applicable to that of Term Loan.
** Subsidy Bridge Loan and Term Loan against Credit Linked Capital Subsidy will carry an interest rate that is applicable to Term Loan.
** In the event of default, penal interest of 2.50% p.a. will be charged for the defaulted amount for the defaulted period.
** Beyond 120 days, additional interest of 2.50% p.a. will be charged under Bill Finance Scheme.
PLR = 13.50%