Renu Suresh

Expert

Published on: Jul 30, 2026

Corporate Loan Scheme

As a measure to advance the productivity and competitiveness of the TIIC assisted units, and for their organizations in the country, the Government of Tamil Nadu has initiated a measure known as Corporate Loan Scheme. The task of administering and implementing this loan scheme is entrusted with the Tamil Nadu Industrial Investment Corporation Limited (TIIC). Tamil Nadu Government provides financial assistance to existing large and MSME sectors with an overall project outlay of Rs.100.00 lakhs under this corporate loan scheme. In this article, we look at the Corporate Loan Scheme in detail. Know more about the Technology Bureau for Small Enterprises

Objective

The objectives of Corporate Loan Scheme is explained as follows:

To upgrade the infrastructural facilities in existing industrial areas of MSE by providing financial assistance
To Create the Fixed Assets in and Small Enterprises (MSE)
To improve the growth of Micro and Small Enterprises by developing the technology, skills, quality, market access and access to capital
For increasing the potential of the MSEs by forming self-help groups, consortia, up-gradation of associations
To built facility centres for the training centre, testing, raw material depot, effluent treatment, complementing production processes

Eligibility Criteria

The eligibility criteria to get financial assistance under the Corporate Loan Scheme are given here.

Large and MSME sectors, engaged in manufacturing, processing and preservation activity are eligible for Corporate Loan Scheme.
The existing services sectors are eligible for Corporate Loan Scheme
The unit should be in existence and operation for the past three financial years to apply for Corporate Loan Scheme
The government provides a loan under Corporate Loan Scheme for units who earned a net profit for the last three financial years.
To obtain a corporate loan, the net worth of the units should be positive and no cumulative losses
The units should be in standard assets category continuously of TIIC /Banks for the last three financial years.

Financial Assistance

Corporate Loan Scheme was launched to extend financial assistance for existing TIIC assisted units, with a good record of accomplishment for any tangible or intangible business needs. Funding for tangible business needs such as capex, servicing new orders, renovation of the property, reimbursement against self-financed assets acquired in the last one year. The fund is provided for intangibles business like brand building, marketing, R&D, inorganic business growth, or any other bonafide business needs.

Quantum of Loan

The minimum quantum of assistance under Corporate Loan Scheme will be Rs.20 lakhs, and the maximum quantum of assistance will be Rs.100 lakhs per unit.

Promoter's Contribution

The promoter’s contribution will be NIL subject to the overall debt-equity ratio including the proposed quantum of limit for the unit not exceeding 2.00: 1.00.

Repayment Period

The maximum repayment period is five years including a moratorium of 6 months for principal repayment, and the repayment will be in equal monthly instalments.

Collateral Security

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

Rate of Interest

The interest for Corporate Loan Scheme will be charged on the compound basis at a monthly rest, besides the penal interest of 2.5% on the defaulted EMI for the defaulted period. The information of the rate of interest is provided in this document:

Application Registration Fees

The trader has to remit Registration Fees for Corporate Loan Scheme at the time furnishing the application.

Sl.No	Loan Detail	Registration Fees
1	Loan processed by Branch Sanction Committee (BSC)	Rs.10000
2	Loan granted by Regional Level Sanction Committee	Rs.10 Lakhs
3	Loan by EC or Board at Head Office	Rs.50000

Investigation Fees

The Investigation fees are inclusive of the registration fees, and it needs to be paid by the applicant before the loan proposal is sanctioned in the prescribed sanction committee. For more details, access the Tamil Nadu Industrial Investment Corporation Limited (TIIC)

Documents Required

Documents required for applying the Corporate 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
Other relevant documents

Corporate Loan Scheme - Application Procedure

The application procedure for Corporate Loan Scheme is explained in step-step by procedure here: Step 1: The applicant needs to apply in the prescribed application form for Corporate Loan Scheme. The application form for Corporate Loan Scheme can be obtained from the Head Office or Branch Offices of the Corporation, or applicant can also download this scheme application form the official website of TTIC. From the main page select Application form, download option under the scheme.

Image 1 Corporate Loan Scheme The list of application forms will be displayed, click on Common Application Form for Corporate Loan Scheme and Contractors Credit Scheme.

Image 1 Corporate Loan Scheme We have here with enclosed the application form for Corporate Loan Scheme:

Step 2: Fill the application form with the following details and submit to the Head Office or Branch Office of Tamil Nadu Industrial Investment Corporation Limited.

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

Step 3: The concerned authority will scrutinise the Corporate Loan Scheme application. The committee will be examined the application for a corporate loan and recommend concerned authority sanction. Step 4: The authority will appraise the unit both economically and technically with the approved project cost of the TIIC. After the deposit of promoter contribution by the applicant and receipt of subsidy claims, the corporate loan will be released to the applicant account.

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Frequently Asked Questions

Common questions about Corporate Loan Scheme for Tamil Nadu Industries.

The Corporate Loan Scheme is a financial assistance initiative by the Government of Tamil Nadu to enhance the productivity and competitiveness of existing TIIC-assisted units and MSME sectors in the state. It provides loans ranging from Rs. 20 lakhs to Rs. 100 lakhs for various business needs.

Large and MSME sectors engaged in manufacturing, processing, preservation activities, and existing service sectors are eligible for the Corporate Loan Scheme. The units should be in operation for the past three financial years, have earned a net profit during this period, have a positive net worth, and be categorized as standard assets by TIIC/Banks.

The key objectives of the Corporate Loan Scheme include upgrading infrastructural facilities in existing industrial areas of MSEs, creating fixed assets, improving the growth of MSEs by developing technology, skills, quality, market access, and access to capital, increasing the potential of MSEs through self-help groups and consortia, and building facility centers for training, testing, raw material depots, and effluent treatment.

The maximum repayment period for the Corporate Loan Scheme is five years, including a moratorium of six months for principal repayment. The repayment is to be made in equal monthly installments.

The interest rate for the Corporate Loan Scheme is charged on a compound basis at a monthly rest. Additionally, a penal interest of 2.5% is charged on the defaulted EMI for the defaulted period.

The collateral security required for the Corporate Loan Scheme is 150% of the credit limit sanctioned.

The documents required for applying for the Corporate Loan Scheme include audited balance sheets, trading and profit/loss accounts, bio-data of promoters and directors, details of existing unit assets, IT returns, copies of work orders, contract agreements, registration certificates, and other relevant documents.

The procedure for applying for the Corporate Loan Scheme involves obtaining and filling out the prescribed application form, submitting it to the TIIC Head Office or Branch Offices along with the required documents, scrutiny and appraisal by the concerned authority, and the release of the loan after the deposit of the promoter's contribution and receipt of subsidy claims.

The registration fees for the Corporate Loan Scheme vary depending on the loan amount and the sanctioning authority. For loans processed by the Branch Sanction Committee, the fee is Rs. 10,000; for loans granted by the Regional Level Sanction Committee, the fee is Rs. 10 lakhs; and for loans sanctioned by the Executive Committee or Board at the Head Office, the fee is Rs. 50,000.

The promoter's contribution for the Corporate Loan Scheme is NIL, subject to the overall debt-equity ratio, including the proposed quantum of limit for the unit, not exceeding 2.00:1.00.