Organisation : Tamil Nadu Industrial Investment Corporation Ltd
Facility : General Term Loan Scheme
General Term Loan Scheme : https://www.tiic.org/tiic-scheme/
Home Page : https://www.tiic.org/
General Term Loan Scheme
1. The Scheme: The scheme is intended to provide financial assistance for new project or to expand / modernise / diversify the existing project..
Related : TIIC Micro/ Small Enterprises Funding Scheme : www.statusin.in/20489.html
2. Eligibility: All small scale / medium / large scale industries and service sector units are eligible for financial assistance. Proprietary concern, Partnership concern, Private Limited Company and Public Limited Company are eligible for financial assistance.
3. Purpose: The loan shall be considered for purchase of land, construction of building and purchase of machinery / equipments, electricals, etc.
4. Quantum of Loan: The maximum exposure considered under the scheme is given below:
| Constitution | Individual | Group |
| [Rs. in Crores] | ||
| Proprietary | 15 | 30 |
| Partnership | 15 | 30 |
| Private / Public Limited Companies | 30 | 40 |
5. Promoter’s contribution: The promoter’s contribution shall be 35% for new units and minimum 25% for existing units with good track record.
6. Debt Equity Ratio: The DER shall be 3 : 1 for loans upto Rs.10 lakhs and 2:1 for loans above Rs.10 lakhs.
7. Repayment period: The term loan will be repayable over a period not exceeding 10 years including an initial moratorium of not more than 2 years. The principal installments are payable on monthly basis and interest is payable on monthly rest.
8. Collateral security: Collateral security shall be offered to the extent of 50% of the loan amount and in respect of highly movable assets that are prone to rapid obsolescence, collateral security shall be 100% of the loan amount.
FAQs :
How much time will it take for sanction of loan?
After submission of the copies of necessary documents/papers such as unit’s land documents, building plan, machinery quotations, collateral documents, relevant approvals etc, TIIC considers loans subject to viability of the scheme, within 18 days if the loan is sanctioned at the Branch level and within 35 days if sanctioned at Head Office.
Do you consider Sanction of small loans?
As per prevailing norms we are considering financial assistance with a minimum quantum of Rs.5.00 lakhs and above for manufacturing sector.
What is the maximum limit for loan sanction?
The maximum sanction limit for proprietary / partnership concerns is Rs.15 crores and for private / public limited companies is Rs.30 crores. For Group Exposure the upper limit is Rs.30 crores for proprietary / partnership concern and Rs.40 crores for private / public limited companies.
Do you give loans only to MSME unit?
No. TIIC also considers financial assistance to large-scale units. However, 90% of our customers are from the MSME sector.
What are the criteria for sanction of loan?
TIIC sanctions loans to industrial units, service sector units like nursing homes, diagnostic centers, commercial complexes, hotels, transport operators, etc.
TIIC considers loans subject to DER norms i.e., 3:1 for the loans up to Rs.10.00lakhs and 2:1 for loans above Rs. 10.00 lakhs. The applicant shall offer collateral security ranging from 50% to 100% of the loan amount depending upon the type of the scheme.