Tamil Nadu Industrial Investment Corporation is working since 1949 as a leading State Financial Company. Therefore, it provides financial assistance to the machinery, land acquisition, and construction industries to facilitate industrial growth in Tamilnadu.
Moreover, for the establishment, expansion, modernization, or diversification sectors in Tamilnadu. Also, it provides monetary support at competitive interest rates. Also, TIIC funds initiatives in the hospitality sector (hotels, hospitals, and related to tourism). TIIC also sets the General Scheme For New & Existing Entrepreneurs
Tamilnadu Industrial Investment Corporation TIIC supports micro, small and medium-sized enterprises [MSMEs]. Also, including the large enterprises, about 90 %of the aid goes to the MSME sector. Therefore, almost 40 per cent goes to the first-generation enterprise sector.
Introduction to General Scheme
The Tamil Nadu Industrial Investment Corporation (TIIC) identifies a few industrial areas with good potential. Also the possibilities for entrepreneurs. Therefore, TIIC designs to help entrepreneurs who come forward to set up fishing net manufacturing units in the region.
Therefore, the General Scheme aims to provide all small, medium, large-scale companies to get full financial assistance. Also, the Service sector units are part of a new project or to develop, improve, or expand the current project. Therefore, the main motive is to help all the entrepreneurs who are new and who already exist as well.
So, we are going to look at TIIC ‘s General Term Loan scheme in-depth in this article.
What is the Purpose of the General Scheme?
So, the primary purpose of the introducing General Scheme is :
Firstly, consider it for purchasing the land.
Secondly, for the construction of the building, buying, and erection of machinery.
Eligibility Criteria for General Scheme For New & Existing Entrepreneurs
So, let’s see that who all are applicable to apply for registering under General Scheme :
- All MSME units
- Small Scale industries
- Medium-scale industries
- Large scale industries
- Service Sector Units
- Non-MSME units
- All the Proprietary firms, Partnership firms, Private Limited Companies, Public Limited companies and also the Limited Liability Partnership firms
Whether you are MSME unit or Non-MSME units, you must hold all the documentation for additional registration. So, applying under the scheme is easy to process. Most important always provide your contact details.
The objective of the General Scheme
TIIC takes the initiative for all types of entrepreneurs in India. Whether they are the new or existing type of entrepreneurs, they get loans and financial support.
Above all, the scheme initiates to give financial assistance to new units, development, modernization, or diversification.
Benefits of General scheme:
So, there are various benefits under the general schemes for all the new and existing entrepreneurs. Let’s allocate them in detail :
Firstly, you get an advantage in the Contribution to Promoters. That is set for all consumers. to clarify, that’s 35 per cent for new units and 25 per cent for current companies.
Secondly, in Deby equity, share you get Loan up to Rs.10 Lakh equals to DER 3:1. Also, Loan more than Rs.10 Lakh equals to DER 2:1
Additionally, in the repayment period is about nine years. Also, that includes the initial moratorium of 2 years.
As well as the collateral security is 50% of the loan amount and 100% loan amount is highly movable assets.
So, all these are the basic benefits you get under the General Scheme For New & Existing Entrepreneurs. Therefore, you must register in this TIIC scheme to get a general term loan.
Loan Limits for General Scheme :
|Proprietary||15.00 Crore||30.00 Crore|
|Partnership||20.00 Crore||30.00 Crore|
|Limited Companies||30.00 Crore||50.00 Crore|
However, entrepreneurs can apply free of charge on the specified application form obtained from the TIIC Head Office/ Branch Offices. So, you can download the application forms from the website http://www.tiic.in/appln_download.html
Fees for registration
Firstly, Rs.10,000/- (loans above Rs.10.00 lakhs) consider by Branch Sanction Committee (BSC) or Regional Level Sanction Committee (RLSC).Moreover, for the loan amount that is to be recognized by EC or Board at Head Office, the Registration Fees is Rs.50,000/-.
The promoters’ contribution applicable under the general scheme is :
Usually for the New cases: 33.33%
And for the Existing: 22.50% subject to overall DER of 2: 1
Debt Equity Ratio
The debt ratio applicable under this scheme is :
- 3: 1 for loans up to Rs.10 lakh
- 2: 1 for loans above Rs.10 lakh
However, in the General Scheme For New & Existing Entrepreneurs, the individuals get a good time for repayment. That is up to 9 years that includes a holiday period of 2 years.
In reality, the applicability of 50% of the loan allowed. So, this is the minimum amount for the collateral security under the General scheme.
The bottom Line
In conclusion, all the entrepreneurs who are new or are already existing are getting great opportunities. Also, thanks to the TIIC which are looking forward to creating employment and making a profitable growth for the country. Further, by giving financial existence, they are ahead towards the aim of a developed country. So, all the entrepreneurs you have a great opportunity. Therefore, start registering today under General schemes and avail its benefits.