Karthiga

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Published on: Jul 30, 2026

TIIC Contractor Credit Scheme

Tamilnadu Industrial Investment Corporation Limited (TIIC) has proposed the Contractor Credit Scheme, which provides financial assistance for government contractors. The Contractor Credit Scheme provides fund for the working capital requirements of civil contractors, general contractors, mining contractors, engineering contractors, etc. In this article, we look at the procedure for availing finance under Contractors Credit Scheme in detail.

Objectives of the Scheme

The primary objective of the Contractor Credit Scheme is to facilitate the contractors to undertake timely execution of work orders by providing adequate and need-based credit facility.

Eligibility Criteria

The following are the eligible conditions to avail loan under the Contractors Credit Scheme:

The contractors should have been registered under MSME, and large enterprise are eligible for Contractor Credit Scheme.
The unit must be in existence and operation for the past two financial years to apply for the contractor loan scheme.
The government provides loan under contractors credit scheme for units who earned a net profit for the last two financial years.
To obtain a contractor loan, the net worth of the units should be positive and no cumulative losses.
The units should be in the standard assets category continuously of TIIC/Banks for the last two financial years.

Quantum of Loan

The minimum quantum of assistance under Contractor Credit Scheme will be Rs.20 lakhs, and the maximum quantum of assistance will be Rs.5 crores for limited companies and Rs.2 crores for proprietary or partnership firm.

Promoter Contribution

The Promoter Contribution under the Contractor Credit Scheme will be at the rate of 25% of the value of the total project cost.

Debt Equity Ratio

The debt-equity ratio fixed for the contractors will be 2:1, including assistance under the scheme.

Collateral Security

The collateral security to the extent of 150% of the credit limit sanctioned will be received.

Registration Fees

The applicant has to pay the registration fee at the time registration of the application.

The Registration Fee of Rs. 5,000 has to be remitted if the loan is processed by the Branch Sanction Committee (BSC).
The Registration Fee of Rs. 25,000 has to be remitted if the loan is processed by the Head Office.

Investigation Fees

The investigation fees are inclusive of the registration fees, and the applicant is requested to make an investigation fee before the loan proposal is sanctioned in the prescribed sanction committee.

Loan Amount	Investigation Fee
Loans up to Rs.10.00 lakhs	Rs.5000/-
Loans above Rs.10 lakhs and up to Rs.50 lakhs	Rs.10000/-
Loans above Rs.50 lakhs and up to Rs.100 lakhs	Rs.30,000/-
Loans above Rs.100 lakhs and up to Rs.200 lakhs	Rs.40,000/-
Loans above Rs.200 lakhs and up to Rs.300 lakhs	Rs.50,000/-
Loans above Rs.300 lakhs and up to Rs.2000 lakhs	0.20% up to a maximum of Rs.2.00 lakhs
Loans above Rs.2000 lakhs	Rs.5,00,000/

Note: 50% concession in investigation fee for applications received in Loan Melas/Customers meets organized by TIIC.

Rate of Interest

The proposed rate of interest charged for the loan amount will be at the rate of 13.20%. For more details about the rate of interest, kindly refer the below-attached pdf.

Documents Required

The documents required for applying the contractor loan scheme is explained in detail below:

Audited Balance Sheet
Trading and Profit Loss account of the applicant
Associate concern for the last three years
Bio-data of Promoter, Director, Guarantors as per prescribed format
Details regarding the assets of the existing unit viz. Building, Land and Machinery
Copy of Collateral documents with supporting records
IT Returns for the promoters, Company for the last three years
Copy of work orders
Copy of Contract Agreements
Copy of Registration Certificates

Application Procedure for the Contractor Credit Scheme

To apply for the Contractor Credit Scheme, follow the procedure specified here. Step 1: Kindly approach the official portal of TIIC, Tamilnadu Government.

Contractor Credit Scheme - Image 1 Step 2: Click on “Application form download” under the scheme option, which is displayed on the home screen of the portal.

Contractor Credit Scheme - Image 2 Step 3: Select the particular application form from the list of options shown below.

Contractor Credit Scheme - Image 3 Step 4: Now, the form for the Contractors Credit Scheme will be downloaded. The application form for the Contractor Credit Scheme is reproduced below in the pdf format for your reference.

Step 5: Fill the application form with the following details and submit to the Head Office or Branch Office of Tamilnadu Industrial Investment Corporation Limited.

Name of the unit
Address of the unit
Size of the unit
Constitution
Amount of Loan Applied
Type of Industry and Product
Details of all promoters
Details of work orders

Step 6: After filling all the mandatory information and attaching the documents required, the application can be submitted in the TIIC office. Note: The concerned authority will verify and approve the submitted application with the particulars if satisfied with the application will be processed.

Repayment Period

The maximum repayment period for the contractor loan is 5 years, including a moratorium of 6 to 18 months for principal repayment, and the repayment can be done in equated monthly instalments. Note: The loan has to be repaid within 1 year from the completion of the project.

Refund for rejection of loan application

In case of rejection of loan application, the prescribed fee will be refunded as given below:

The investigation fee paid as the second instalment will be considered for refund at the rate of 50% on fees paid if the applicant withdraws the proposal before sanction. However, the initial registration fees will not be refunded.
If the corporation or the applicant rejects the loan application withdraws the application after the sanction of loan, no reimbursement will be entertained.
No refund of investigation fee will be allowed if the contractor availed for 50% concession already.

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Frequently Asked Questions

Common questions about TIIC Contractor Credit Scheme for Financial Assistance.

The Contractor Credit Scheme is a financial assistance scheme introduced by the Tamilnadu Industrial Investment Corporation Limited (TIIC) to provide working capital loans to contractors engaged in civil, mining, engineering, and other related works. The scheme aims to facilitate timely execution of work orders by providing adequate and need-based credit facilities.

Contractors registered under the MSME or as large enterprises, who have been in operation for at least two financial years, earned net profits in the last two years, have a positive net worth without cumulative losses, and have been categorized as standard assets by TIIC/Banks for the last two financial years are eligible for the Contractor Credit Scheme.

The maximum loan amount available under the Contractor Credit Scheme is Rs. 5 crores for limited companies and Rs. 2 crores for proprietary or partnership firms. The minimum loan amount is Rs. 20 lakhs.

Under the Contractor Credit Scheme, the promoter's contribution should be at least 25% of the total project cost.

The debt-equity ratio fixed for contractors under the Contractor Credit Scheme is 2:1, including the assistance provided under the scheme.

Collateral security to the extent of 150% of the credit limit sanctioned under the Contractor Credit Scheme is required.

The registration fee is Rs. 5,000 for loans processed by the Branch Sanction Committee (BSC) and Rs. 25,000 for loans processed by the Head Office. Investigation fees, inclusive of the registration fee, vary from Rs. 5,000 to a maximum of Rs. 5 lakhs, depending on the loan amount.

The proposed rate of interest charged for loans under the Contractor Credit Scheme is 13.20%.

The maximum repayment period for loans under the Contractor Credit Scheme is 5 years, including a moratorium of 6 to 18 months for principal repayment. The loan must be repaid within 1 year from the completion of the project.

Contractors can apply for the Contractor Credit Scheme by downloading the application form from the official TIIC portal, filling it with the required details and documents, and submitting it to the TIIC Head Office or Branch Office.