What you get
- Financial assistance (Term Loan and/or Working Capital Loan) up to a maximum of ₹25,00,000/- per unit. | - Loan proceeds may be used for assistance for fixed assets and/or working capital. | - Loan proceeds may be considered for the purchase of new machinery/equipment and to meet the working capital requirement. | - The maximum repayment period is 8 years, including a moratorium period of maximum 1 year. | Disbursement Conditions | - The Debt Equity Ratio (DER) required for loans under this scheme up to ₹25,00,000/- is 3:1. | - Term loans and working capital loans up to ₹25,00,000/- are charged an interest rate of 10% (Ten per cent) per annum. | - A concessional rate of interest, 0.5% (zero point five per cent) less than the normal rate, is charged for units promoted by Women, Scheduled Caste (SC), Scheduled Tribe (ST), or Differently Abled persons. | Conditions | - _Collateral security in the form of immovable property shall be offered, apart from the mortgage/hypothecation of proposed fixed assets._ | - _The value of immovable property situated in the Union Territory of Puducherry offered as security must be not less than the amount of the term loan sanctioned._ | - _If the immovable property is situated outside the Union Territory of Puducherry, its value must be not less than 150% of the loan amount if it includes land with a building._ | - _If the immovable property offered outside the Union Territory of Puducherry is only land, its value must be not less than 200% of the loan amount._ | - _For units promoted by Women, Scheduled Caste (SC), Scheduled Tribe (ST), or Differently Abled persons, the value of the property to be offered as collateral security is reduced and fixed at 50% (Fifty per cent) of the loan amount._ | - _The valuation of properties offered as security shall be assessed by engaging Chartered Engineers/valuers from the approved panel of the Corporation._
Who can apply
Required Paperwork
- Aadhaar Card
- PAN Card
- Income Certificate
- Residence Proof (Domicile)
Common Questions
Are there any reductions or concessions provided regarding the payable investigation fee for loan applicants belonging to marginalized communities or specified groups?
Yes, Women, Scheduled Caste, Scheduled Tribe, and Differently abled entrepreneurs are eligible for a 50% concession on the investigation fee.
If the immovable property being offered as security is situated outside the Union Territory, what valuation percentage is required if it includes both land and a building?
The value of the land with building offered must be not less than 150% of the total loan amount sanctioned.
What specific Debt Equity Ratio calculation must my proposal adhere to when applying for loans up to the specified limit under this program?
The Debt Equity Ratio required for loans up to ₹25,00,000/- under the Composite Loan Scheme is 3:1.
What particular financial needs are these composite loan funds intended to address for new or existing micro enterprise projects?
The loan is intended to assist with purchasing new machinery/equipment (fixed assets) or to meet the necessary working capital requirement.
When offering immovable property located within the Union Territory of Puducherry as security, what is the minimum required valuation?
The property’s value must be assessed to be not less than 100% (the full amount) of the term loan sanctioned.
What is the longest permitted duration for repaying the entire principal loan amount, including any potential break periods, for enterprises availing this scheme?
The maximum repayment period allowed under this scheme is 8 years.
Which specific types of small-scale business structures or industrial activities are considered appropriate beneficiaries of this financial program?
This scheme is primarily designed for Artisans, Village and Cottage Industries, and Micro Enterprises projects.
If my project requires an initial period before starting loan repayments, what is the maximum moratorium period that can be granted?
A maximum moratorium period of 1 year is included within the total 8-year repayment period.
I need clarification regarding the absolute maximum quantum of financial assistance an eligible business unit can receive under this specific scheme?
The maximum loan amount that can be considered for a single unit under the Scheme for Cottage and Village Industries is ₹25,00,000/-.
What is the prevailing annual interest rate structure applicable to term loans or working capital loans sanctioned up to ₹25,00,000/-?
The standard annual interest rate charged for term loans and working capital loans up to ₹25,00,000/- is 10%.
Do applicants belonging to specific socially relevant categories qualify for any special reduction in the standard rate of interest?
A concessional rate of interest, reduced by 0.5% less than the normal rate, is charged for units promoted by Women, Scheduled Caste, Scheduled Tribe, or Differently abled persons.
Aside from mortgaging or hypothecating the assets acquired using the loan funds, what additional security must be provided?
The applicant must offer collateral security in the form of immovable property, according to the Corporation’s official lending policy.
If only undeveloped land located outside the Union Territory of Puducherry is provided as collateral, what is the minimum acceptable valuation threshold?
If the property offered as security is only land, its value shall be assessed at not less than 200% of the total term loan amount.
Are there any specific residency conditions that must be satisfied by the promoters seeking financial assistance under this loan provision?
The applicant's promoters must be residents of Puducherry to be considered eligible for this financial assistance scheme.