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TIIC Single Window Scheme

TIIC Single Window Scheme

Tamil Nadu Industrial Investment Corporation Limited (TIIC) has initiated the Single Window Scheme to provide financial assistance for the Micro and Small units. Single Window Scheme provides funding for the working capital requirements with a maximum of Rs. 2 crores (including the project cost) for both term loan and working capital assistance under the scheme. In this article, we look at the Single Window Scheme in detail.

Eligibility Criteria

The following are the eligible conditions to avail loan under the Single Widow Scheme:

• The Micro and Small units with the aggregate cost of the project excluding working capital margin and total working capital requirement up to Rs. 2 Crore.
  • If the units already availed any loans with banks, they are not eligible for working capital assistance under Single Window Scheme. However, they can be assisted under other working capital schemes of our Corporation.

Debt Equity Ratio

The debt-equity ratio fixed for the Micro and Small units are as follows:

Up to Rs. 10 lakhs: The Debt-Equity Ratio should be 3:1 for loans up to Rs. 10 lakhs including working capital loan.

Above Rs. 10 lakhs: The Debt-Equity Ratio should be 2:1 for loans above Rs. 10 lakhs. 

Promoter Contribution

The Promoter Contribution under the Single Window scheme will be at the rate of 35%.

Rate of Interest

The proposed rate of interest charged for the loan amount will be at the rate of 12.45%.

For more details about rate of interest, kindly refer the below-attached pdf.

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Security

The collateral security is required from the Micro and Small units to meet 100% of working capital term loan component and to cover 50% of term loan component under Single Window Scheme.

Registration Fees

The applicant has to remit Registration Fees at the time registration of the application.

• The Registration Fee of Rs. 10,000 has to be remitted if the loan is processed by the Branch Sanction Committee (BSC).
• The Registration Fee of Rs. 10 lakhs or above has to be remitted f the loan is processed by the Regional Level Sanction Committee (RLSC).
• The Registration Fee of Rs. 50,000 has to be remitted if the loan is processed by the by EC or Board at Head Office.

Documents Required

The following are the documents are to be furnished along with application form.

• Copy of MSME / ROC / SIA Acknowledgement / Company Identification Number.
• Certified copy of the Partnership Deed and Firm Registration.
• Copy of the Memorandum of Association (MOA) and date of Incorporation Certificate.
• Copy of the sale deed or lease deed executed for the factory premises.
• Copy of the building plan approval.
• Copy of the Industrial License as applicable.
• Copy of TNPCB Clearance.
• Invoices of the plant and machinery purchased duly attested by the authorised signatory of the company/concern.
• Terms and conditions of term loan/working capital loan sanction, if any, extended by Bank/Financial Institution.
• The certificate is required from the Company’s Statutory Auditor if the companies incorporated under ROC/ Chartered Accountant.
• In the case of other firms, the concerned person who certifies the annual accounts for the amount remitted in land, building and Plant & Machinery as per the format has to be enclosed.
• Chartered Engineer’s Certificate for the amount spent in land, building and plant and machinery as per the format enclosed.
• In case of companies incorporated under Chartered Accountant or ROC, the commencement date of commercial production for the new or existing project has to be duly certified by the unit’s Statutory Auditors.
• In case of companies incorporated under Chartered Accountant or ROC, invoice along with certificate given by the Statutory Auditors has to be enclosed.
• In case of any other firms, the invoice along with the certified annual accounts of the concern of the company.
• Certified copy of audited balance sheet, profit and loss account for the last 3 years along with the schedules.
• The documents for new/second hand imported machinery such as a copy of Letter of Credit, Bill of Entry, Bill of Lading, duty and details of clearing charges paid etc., has to be furnished.
• For second-hand imported machinery, Chartered Engineer’s Certificate indicating the country of origin, year of manufacture, condition of the machinery, the reasonableness of the price and residual life of the machinery has to be enclosed.

Note: All copies have to be duly attested by the Statutory Auditors/authorised agency of the company/Chartered Accountant of the company.

Application Procedure

The application form for Single Widow Scheme can be obtained from the Head Office or Branch Offices of the Corporation, or you can also download the application form the official website of TTIC. Fill the application form with the necessary details along with the documents required and propose the nearby TIIC office with the duly filled application form. The concerned authority will verify the submitted application with the particulars if satisfied with the application will be processed.

Repayment Period

Working Capital Loan: The loan repayment period of the working capital loan is up to 3 years, along with a moratorium period of 4 months.

Term Loan: The loan repayment period of the term loan under Single Window Scheme is up to 5 to 7 years along with the moratorium period.