What you get
- Financial assistance is available for a minimum amount of ₹5,00,000/- and a maximum amount of ₹150,00,000. | - An interest concession of 1% less than the normal rate is provided for 'A' Category borrowers. | - The loan funds are intended to be used to acquire fixed assets for setting up of new units. | - The loan funds are intended for expansion, modernization, purchase of balancing equipment, and replacement of machinery or equipment of existing units. | - The repayment period is 3 to 5 years, excluding the moratorium period. | Conditions | - _Fixed assets in existing units assisted by other institutions or banks must be free from encumbrance._ | - _Collateral security in the form of immovable property must be offered as per the lending policy of the Corporation._ | - _The value of immovable property situated in the Union Territory of Puducherry to be offered shall be not less than the amount of term loan sanctioned._ | - _If the immovable property is situated outside the Union Territory of Puducherry, the value must be not less than 150% of the loan amount in the case of land with building._ | - _If the immovable property situated outside the Union Territory of Puducherry is only land, the value of the same shall be not less than 200% of the loan amount._
Who can apply
Required Paperwork
- Aadhaar Card
- PAN Card
- Income Certificate
- Residence Proof (Domicile)
Common Questions
Does my unit need to demonstrate a history of consistent and timely payment of past dues to be considered for eligibility under this specific scheme?
Yes, the existing assisted unit must maintain a track record of being regular and prompt in fulfilling all its repayment obligations.
What minimum valuation standard is applied when the immovable property offered as collateral, situated outside the Union Territory, consists solely of land?
If the property situated outside the Union Territory of Puducherry is only land, its value must be at least 200% of the sanctioned loan amount.
What are the various approved uses for the funds provided through this financial assistance program once the application is successfully sanctioned?
The loan funds are to be used for acquiring fixed assets, setting up new units, or undertaking expansion, modernization, purchase of balancing equipment, or replacement of machinery or equipment of existing units.
What is the absolute minimum amount of financial assistance that an applicant classified under the 'A' Category can apply for under this program?
The minimum loan limit available for eligible units under this scheme is stipulated to be ₹5,00,000.
If my unit has been assisted by other financial institutions or banks instead of this Corporation, can I still apply for this particular scheme?
Yes, units assisted by other institutions or banks may apply, provided they satisfy the criteria under Good Borrowers and their existing fixed assets are free from encumbrance.
If I offer immovable property located specifically within the Union Territory of Puducherry as collateral, what minimum value must it represent?
The value of immovable property situated in the Union Territory of Puducherry offered as security must be not less than the amount of the sanctioned term loan.
What specific benefit or concession is offered to the ‘A’ Category Good Borrowers regarding the interest rate applicable to the sanctioned loan amount?
Applicants classified under the ‘A’ Category are provided with a favorable interest concession of 1% less than the prevailing normal rate.
What is the minimum operational history required for my existing business unit to be considered eligible to receive this special financial assistance?
The existing assisted unit must have been fully operational for a duration of more than three years to qualify for the scheme benefits.
For collateral security consisting of land and building located outside the Union Territory of Puducherry, what percentage of the loan amount is required as minimum value?
If the immovable property situated outside the Union Territory of Puducherry includes both land and a building, its value must be at least 150% of the loan amount.
Will my unit still qualify for this loan program if we have previously obtained re-schedulement for any existing financial assistance we have received?
No, to be eligible for the 'A' Category, your existing assisted unit must be regular in repayment without ever having utilized re-schedulement.
What specific industrial sectors or classifications are eligible to receive assistance under the 'A' Category scheme for good borrowers?
The eligible units include existing assisted units classified as 'A' Category in both the Medium Scale Industry and Small Scale Industry sectors.
Am I eligible to apply for this financial support if my enterprise is already an existing assisted unit of the financing corporation?
Yes, the assistance is specifically targeted towards existing assisted units that fulfill the criteria defined under the 'A' Category of Good Borrowers.
What is the standard repayment timeline set for the term loan provided under this scheme, not accounting for any potential initial grace period?
The period for repayment of the term loan ranges from 3 to 5 years, not including the specified moratorium period.
Is there a maximum ceiling placed on the total amount of the term loan that an ‘A’ Category Good Borrower can receive under the scheme provisions?
The maximum loan limit permitted for eligible 'A' Category units under the scheme provisions is ₹150,00,000.