Micro Small Enterprise Funding Scheme TIIC

Micro Small Enterprise Funding Scheme

The Micro Small Enterprise Funding Scheme is initiated by the Government of Tamil Nadu to advance the growth and competitiveness of micro and small enterprises (MSE).

The Tamil Nadu Industrial Investment Corporation Limited (TIIC) charges with overseeing and executing this scheme. Even the Government of Tamil Nadu provides financial assistance under this MSE funding scheme.

Moreover, to the New or Well-Known Units in Micro and Small Enterprises with an overall project outlay of Rs.50.00 lakhs. Also, we’ll look at the Micro and Small Enterprises Funding Scheme in-depth.

Objective of Micro Enterprises Funding Scheme TIIC

Objectives

The main objective is to the extension of financial assistance. To new/existing micro and small enterprise units with a cumulative project outlay of Rs.50 lakh. Other purposes are as follows:Firstly, upgrading infrastructure facilities in new or existing MSE industrial zones through financial assistance provided.

Secondly, for the creation of fixed assets in small businesses and small businesses (MSE).

They are improving the growth of micro / small businesses through the advancement of technology. Also, the skills, and quality, access to markets, access to resources.

Also, to increase the potential of the MSEs. By forming self-help groups, consortia, up-gradation of associations, etc.

Construction of research centers, training centers, depots of raw materials, effluent disposal, complementary manufacturing methods, etc.

Eligibility Criteria TIIC Micro Enterprise Funding Scheme

Eligibility Criteria for Micro Small Enterprise Funding Scheme

The conditions for eligibility for financial assistance under the Micro / Small Enterprises Funding Scheme here:New micro and small-scale enterprises for the manufacturing, storage, or processing products, regardless of location.

Also, for service sector ventures such as hospitals, fast food restaurants, etc. Except for small road transport operators [SRTOs], new micro and small-scale enterprises. 

Even the Tamil Nadu Current Micro and Small Scale Enterprises (MSE) Units.

Moreover, the Service Businesses, Growth, Modernization, Gradation of Technology and Diversification

Importantly all the Propertship, Partnership, and Limited companies like LLP.

Purpose

Introducing the Micro Small Enterprise Funding Scheme is for the creation of fixed assets. That’s the leading and valid reason to help all the sole properties, business persons, and limited companies. Moreover, all the micro, small units get fixed assets to get good results in the future. So, all the MSEs and the companies start applying today at TIIC official website.

Allotment of the Loan amount 

Under the Micro and Small Enterprises Funding Scheme, the allotment of the Loan depends on the type of user:

Firstly, for New MSE Units, a term loan 80% of Project cost subject. That governs a maximum of up to Rs.40 lakhs.

Secondly, for existing MSE units, a term loan of 75% of the project cost. That governs to a maximum of Rs.37.50 lakhs.

Project Cost

The cost of a project under the Micro and Small Enterprises Funding Scheme never exceeds Rs.50 Lakh. Also, this amount is only for the new units. In respect of existing MSE units, the cost of the project never exceeds Rs.50. Lakhs. 

Promoter’s Contribution

The Minimum Promoter’s contribution to the Micro and Small Enterprises Funding Scheme is set at 20% of the project cost. But in Detail :

So, the Promoter’s Contribution to all the New units is  20% of Project Cost.

And Promoter’s Contribution to all the Existing units is 25% of Project Cost.

Debt Equity Ratio

So, the debt-equity ratio for new units under Micro and Small Enterprises:

Firstly, for all the new companies, the Debt Equity ratio is 4: 1.

Secondly, for all the Existing units, the Debt Equity ratio is Below 3: 1.

Repayment Period

The loan repayment period for applying under the Micro and Small Enterprises Funding Scheme is six years. Also, remember that the time limit must not exceed 6years, including a moratorium of 6 months. To avoid penalties, you must make the repayment on time.

Collateral Security

The collateral security under the Micro and Small Enterprises Funding Scheme assume according to the existing policy guideline. But 50% of the Loan endorsed (minimum). So, it depends on the type of company, business you are.

Documents for getting MSE funding scheme

So, to register, all the documents are must under the Small and Medium Enterprise Scheme are:

  • Businessman’s memorandum Project Report
  • Certificate of firm registration
  • Deed of partnership
  • Memorandum and Organizational Documents
  • Certificate of Consolidation in the case of Companies
  • Copy of Bye-laws in case of Society
  • Bio-Data and Net-value Statement in respect of each promoter, directors, and verifiers
  • Importantly Certificate in Education and Technology
  • Compliance Documents KYC
  • Details of Joint Concerns
  • Copies of the Spreadsheet Balance Sheet and Profit & Loss Account of the relevant assets and schedules for the past three years
  • Research Sheet Sheet
  • Audited Balance Sheet
  • Commercial Deed, Parental Documents, Patta, Chitta, Adangal, Tax Receipt, FMB Sketch
  • Certificate of Encumbrance
  • Approved building plan
  • NOC / Permission Order from the Pollution Control Board
  • Licenses such as drug license / EPCG license
  • Bonds on the market
  • Copy of Lease Deed or Purchase Agreement
Steps to apply for Micro & Small Enterprises Funding Scheme TIIC
Steps to apply for Micro Small Enterprise Funding Scheme

So the step by step, the application procedure for the Micro and Small Enterprises Funding Scheme :

Step 1: Firstly, you have to open the TIIC website or visit the Head Office or Branch Offices of the Corporation. But you can easily do an online procedure, just download the application form of the MSE funding scheme. The list of schemes application form displays on the screen. Even you can click on Application for Financial Assistance for Industrial Units.

Step 2: Secondly, give details in the application form with the following information. After that, submit to the Head Office or Branch Office of Tamil Nadu Industrial Investment Corporation Limited.

  • Purpose of Loan
  • Amount Applied for
  • Unit Name
  • Size of the Unit
  • Constitution
  • Loan assistance require
  • Details of Management

Step 3: After that, the official authority examines the MSE funding application. The committee view and verify the application for a loan. Then forward it to the related authority permission.

Step 4: Further, the authority evaluates the project both technically and economically, with the recognition project cost of TIIC.

After the security deposit of promoter contribution by the candidate. Including the receipt of the subsidy claim. Finally, the Loan passes to the applicant account.

Registration Fees

So, the applicant has to remit Registration Fees for the Micro and Small Enterprises Funding Scheme:

Sl.NoLoan DetailRegistration Fees
1Firstly, the Loans process by Branch Sanction Committee (BSC)Rs.10000
2Secondly, the Loan provides by the Regional Level Sanction Committee (RLSC)Rs.10 Lakhs
3Thirdly, the Loan by EC / Board at Head OfficeRs.50000
Conclusion

In conclusion, this is an excellent opportunity for all the existing MSE that is Micro & small Enterprises, to create fixed assets. The TIIC establishes a whole ministry devotes to support new companies and to promote MSE. So, by launching MSE funding schemes to encourage Businesses to have the creation of fixed assets.Even the key aim is to expand financial assistance. To new/existing micro and small business units with a combined Rs.50 lakh project outlay.

Also, the interest for Micro and Small Enterprises Funding Scheme charges on the compound basis at a monthly rest. Besides the penal interest of 2.5% on the default EMI for the default period. But you make sure about the timely repayment to avoid penalties. So, For more details, helpful visit the TIIC official website.

If You have required project report for TIIC, you can get from our website ProjectreportBank.Com Click here

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