With an Intention to provide opportunity persons from economically and socially disadvantaged backgrounds in order to lead a life of dignity, Directorate of Industries and Commerce, Government of Tamil Nadu promoted Enterprise Development Scheme
The objective of this scheme is to promote entrepreneurship amongst persons from economically and socially disadvantaged backgrounds who wish to posses their own enterprise, to generate income.
- First generation entrepreneurs who are engaged in manufacturing/service/value addition activity shall be targeted under the scheme.
- Persons without any asset back up but having relevant qualifications and experience for implementing viable project.
- The promoters should have knowledge/experience in the particular line of proposed activity.
- Existing small units requiring assistance for additional machinery / needs additional working capital
- For transport loan cases, assistance shall be considered only for “OWNER DRIVEN” category i.e., entrepreneur should have valid license with badge for Auto and Tourist Taxi endorsement for the purchase of Tourist Taxies.. Assistance for subsequent vehicles to the same individuals can be considered under Non-owner driven category. For small industrial units requiring load vehicles, assistance can be also considered under Non-owner driven category. The vehicle should be registered as Private Vehicle in the name of the applicant unit.
- Loan advances to the following activities shall not be considered under the scheme:-
- Educational/Training Insitutions (including professionals / computers etc.,) in any form
- Group Loans – Loans to Self Help Groups etc.,
- Wholesale / Retail trading
- If the Applicant / Spouse / Children owns immovable property, then such applicants need not be considered under the scheme..
- The pre-operative expenses payable by the promoter such as processing fee, can be included in the project cost. However, the promoter has to pay 1% on the loan amount initially and 0.5% on the loan amount sanctioned at the beginning of every year as RISK COVERAGE FUND as the entire risk is borne by the Corporation.
- The procedures for considering proposals and for sanction of loans under the scheme are simple and hence quick. The hassle free and easy process of TIIC, devoid of laborious paper work and a welcome relief for the entrepreneurs.
- The minimum loan assistance shall be Rs.50,000/.
- The maximum loan limit shall be Rs.5.00 lakhs or 30 times on the net salary of the two guarantors put together whichever is lower.
- Term and working capital loan can be sanctioned as a composite loan as a maximum of Rs.5.00 lakhs.
- Working capital can be sanctioned to units not exceeding the term loan amount or Rs.50,000/- whichever is higher.
- Working capital can be sanctioned to Artisans not exceeding Rs.50,000/- with the proper assessment.
** Note: The promoter’s should contribution minimum of 10% on the project cost.
The repayment shall be fixed between two and five years with a pause of three to six month (For units purchasing electronic items, repayment will be 3 years).
It shall be fixed based on the cash flow and future life of the equipments.
To know more about rate of Interest Click here
- Primary assets shall be mortgaged / hypothecated to TIIC. In case of loan for expansion, charge on the existing assets will be extended.
- Third party guarantee shall be obtained as under:-
- For loans upto Rs.2.00 lakhs – from one person
- For loans above Rs.2.00 lakhs – from two persons
- The guarantors should be an employee of Central / State Government or Central / State Government undertakings or Public Sector Banks / Financial Institutions or any other organisations / bodies established by Central / State Government (inclusive of Co-operative Societies and educational institution established by State and Central Government). The guarantor’s age is restricted to 50 years.
The guarantor should be a person owning land / land and building worth equal to or more than 2 times of the loan amount. Value of the property shall be assessed by a TIIC official.
- The guarantor’s age is restricted to 60 years.
Registration of Application
The entrepreneurs can get the application form from Head Office or Branch Offices of the Corporation on free of cost together with the particulars required for the processing of the Application.
Application can also be downloaded from website http://www.tiic.in/appln_download.html.
The applicant has to remit Registration Fees at the time registration of the application. The Registration Fee is Rs.5,000/- for loans to be considered by Branch Sanction Committee. In respect of loans to be considered by Head Office, the Registration Fees is Rs.25,000/-.
The Investigation fees is inclusive of Registration Fees and is payable by the applicant before the loan proposal is placed in the respective sanction committee. For more details on Investigation fee click here