Corporate Loan Scheme
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.
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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
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.
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.
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.
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.
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:int_rate
Application Registration Fees
The trader has to remit Registration Fees for Corporate loan scheme at the time furnishing the application.
|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|
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 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.
The list of application forms will be displayed, click on Common Application Form for Corporate Loan Scheme and Contractors Credit Scheme.
We have here with enclosed the application form for Corporate Loan Scheme:Appln_Form_Corporate_Contractors_Scheme-2-5
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
- Size of the Unit
- 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.