Covid Relief and Upliftment Scheme (CORUS)
Covid Relief and Upliftment Scheme (CORUS)
The Government of Tamil Nadu has launched CORUS – Covid Relief and Upliftment Scheme to provide financial assistance to MSME units to face the prevailing challenge against Covid 19. The task of administering and implementing this loan scheme is entrusted with the Tamil Nadu Industrial Investment Corporation Limited (TIIC). TIIC has formulated this special package to ease the fund flow to meet emergent fund requirements for expenses related to capital expenditure and working capital needs. The current article briefs the Covid Relief and Upliftment Scheme.
Objective of CORUS
The key objective of the Covid Relief and Upliftment Scheme is to meet out the liquidity crisis due to Covid 19 pandemic.
Purpose of CORUS
The government of Tamil Nadu has launched this scheme to meet the Capital expenses and the Working Capital needs of MSME sectors.
The eligibility criteria to avail the benefits of Covid Relief and Upliftment Scheme are as follows;
- At the time of sanction: The unit must be in the Standard category as of 01.03.2020 (with or without overdue).
- At the time of disbursement: There shall not be any overdue even after incorporating 3 monthly moratorium
- MSME sectors, engaged in manufacturing, processing, and preservation activity are eligible for a 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 a Corporate loan scheme
- The government provides a loan under a corporate loan scheme for units that 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 continuously be in the standard assets category of TIIC /Banks for the last three financial years.
Quantum of Loan
The minimum quantum of assistance under the Covid Relief and Upliftment Scheme will be Rs.2 lakhs, and the maximum quantum of assistance will be Rs.25 lakhs per unit.
Rate of Interest
The rate of interest provided under the Covid Relief and Upliftment Scheme is as follows:
- Prime Lending Rate – 11.95% (PLR)
- Micro and Small Enterprises with 6% eligible Interest Subvention: Effective Return on investment (ROI): 5.95%
- Medium Enterprises with 3% eligible Interest Subvention: Effective Return on investment (ROI): 8.95%
The maximum repayment period is three years including a moratorium of 6 months for principal repayment, and the repayment will be in equal monthly installments.
No additional collateral will be obtained and the charges on existing primary & collateral security shall be extended.
The promoter’s contribution will be NIL subject to the overall debt-equity ratio including the proposed quantum of limit for the unit.
Application Process Fee
The applicant no needs to pay a fee for processing the application under the Covid Relief and Upliftment Scheme. For more details, access the Tamil Nadu Industrial Investment Corporation Limited (TIIC)
Documents required for applying the Covid Relief and Upliftment 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
Covid Relief and Upliftment Scheme – Application Procedure
The application procedure for Covid Relief and Upliftment Scheme is explained in step-step by procedure here:
- The applicant needs to apply in the prescribed application form for Covid Relief and Upliftment Scheme.
- The application form for Covid Relief and Upliftment Scheme can be obtained from the Head Office or Branch Offices of the Corporation, or the applicant can also download this scheme application from the official website of TTIC. From the main page select the option CORUS under the event section.
- The application form can be obtained By clicking on the download option under the scheme.
- We have herewith enclosed the application form for CORUS
- Fill the application form with the following details and submit it to the Head Office or Branch Office of Tamil Nadu Industrial Investment Corporation Limited.
- Note: Scanned copy of Application to be submitted in Typed or written form with signature shall be submitted through e-mail during lockdown period
- 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
- The concerned authority will scrutinize the CORUS application. The committee will be examined the application for a loan and recommend the concerned authority for loan sanction.