TIIC Single Window Scheme : Tamil Nadu Industrial Investment Corporation

Organisation : Industrial Investment Corporation Ltd
Scheme Name : Single Window Scheme
Applicable For : Tamil Nadu
Website : http://www.tiic.in/single_window.html

Single Window Scheme :

All Micro and Small units, whose project outlay (excluding working capital margin) is within Rs.200.00 lakhs would be eligible for both term loan and working capital assistance under the scheme.

Related : TIIC Micro, Small Enterprises Funding Scheme Tamil Nadu Industrial Investment Corporation : www.statusin.in/25312.html

1. The Scheme : The Corporation considers financial assistance for creation of fixed assets and working capital assistance for Micro and Small units.

2. Eligibility : The Micro and Small units with venture outlay i.e. aggregate cost of the project (excluding working capital margin) and total working capital requirement shall be upto Rs.200.00 lakhs.

If the units have bank facility, they are not eligible for working capital assistance under Single Window Scheme. However, they can be accommodated under other working capital schemes of our Corporation.

3. Project Cost : The total venture outlay i.e. project cost (excluding working capital margin) and working capital requirement shall not exceed Rs.200.00 lakhs.

4. Debt Equity Ratio : The Debt Equity Ratio shall be 3 : 1 for loans upto Rs.10 lakhs (including working capital loan). The Debt Equity Ratio shall be 2 : 1 for loans above Rs.10 lakhs.
5. Promoter’s contribution : Promoter’s contribution shall be 35%.

6. Repayment Period : Repayment of working capital loan is for a period of 3 years including a moratorium period of 4 months. Repayment of term loan under Single Window Scheme is 5 to 7 years including the moratorium period.

7. Collateral Security : The unit shall offer collateral security to cover 100% of working capital term loan component and to cover 50% of term loan component under Single Window Scheme.

FAQs :
1. Do you finance for Dairy Farms, Goat farms, harvesting machines etc.?
TIIC cannot consider financial assistance to the above activities. It can finance post harvest operations.

2. Can you consider loans for housing?
No. TIIC cannot extend financial assistance for purchase of residential houses. However, financial assistance is extended for construction of commercial complexes / conventional halls, marriage halls, warehouses and storage godowns.

3. Does TIIC finance for project outside Tamilnadu?
Other than projects in Tamilnadu, projects set up in Pondicherry can be taken up for consideration subject to obtaining of NOC from PIPDIC.

4. Do you finance term loan and working capital loan to a new unit?
We are presently operating the Single Window Scheme selectively, wherein both term loan for fixed assets and working capital term loan for current assets of a new unit are financed by TIIC.

5. Banks are considering both term loan and working capital. Why is TIIC considering only fixed asset term loan?
TIIC is a term lending institution, which gives term loans for acquiring fixed assets. We are also giving working capital term loans for existing good track record units, which have earned net profit for the last 2 years.

The repayment period including moratorium of 4 months is 36 months. The applicant shall offer collateral security ranging from 100% to 150% of the loan amount. For further details please refer the working capital term loan scheme in this site.

6. Do you provide Working Capital Term Loan to non-customers of TIIC?
Yes. We are operating the working capital term loan scheme for financing of working capital requirement of the existing non assisted units of TIIC also satisfying our eligibility criteria.

7. Does TIIC finance for second hand machinery?
Second Hand Machinery as under can be considered
i. Machinery indigenously manufactured by Standard Companies and used locally.

ii. Machinery imported as new from foreign manufacturers and used locally.
iii. Second hand machinery, imported directly. Machinery should have a residual life of at least 10 years and be certified by a chartered engineer.

8. Does TIIC finance for second hand industrial shed?
TIIC considers finance for purchase of second hand SIDCO sheds provided the building is structurally safe and has a left over life of 15 years.

Purchase of second hand private industrial sheds can also be considered if the building is structurally safe and has a left over life of 20 years.

9. Whether you sanction loan without security?
Loan upto Rs.5 lakhs is sanctioned under our “ Entrepreneur Development Scheme” without collateral security but backed by one/two guarantors satisfying our norms.

10. Do you accept corporate guarantee and share certificates as collateral security?
No. TIIC does not accept corporate guarantee/share certificates exclusively as collateral security. TIIC normally accepts only immovable property as collateral security.

However, TIIC may accept Fixed Deposits whenever there is a short fall in the value of the immovable property offered as collateral, based on the merits of the case.

11. What type of charge over assets is created in favour of TIIC for loans?
The unit shall deposit the original Registered Sale Deeds/documents and create charge by equitable mortgage of land and buildings and by hypothecation of machinery in favour of TIIC.