What you get
- Financial assistance (Term Loan) up to a maximum of ₹10,00,00,000/- per project. | - Loan proceeds may be used for acquiring fixed assets, including the purchase of land, construction of buildings, and procurement of machinery, equipment, electricals, and miscellaneous fixed assets. | - The maximum repayment period is 8 years, which includes a maximum moratorium period of 2 years. | Benefit Disbursement Criteria | - The Debt Equity Ratio (DER) must be 3:1 for loans up to ₹25,00,000/-. | - The Debt Equity Ratio (DER) must be 2:1 for loans above ₹25,00,000/-. | Conditions | - Collateral security in the form of immovable property must be offered as per the lending policy of the corporation. | - The valuation of properties offered as security must be assessed by engaging Chartered Engineers or valuers from the approved panel of the Corporation. | - In respect of immovable property situated in the Union Territory of Puducherry, the value of the property offered must be not less than the amount of the term loan sanctioned. | - In respect of immovable property situated outside the Union Territory of Puducherry, the value of land with building offered must be not less than 150% of the loan amount. | - If the 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, Scheduled Tribe, or Differently Abled persons, the value of the property to be offered as collateral security is fixed at 50% of the loan amount.
Who can apply
Required Paperwork
- Aadhaar Card
- PAN Card
- Income Certificate
- Residence Proof (Domicile)
Common Questions
If an applicant belongs to the Small Scale Industry or Medium Scale Industry sector, what is the highest amount of financial assistance they can avail per project under this scheme?
The maximum term loan amount sanctioned per project under this general scheme of assistance cannot exceed ₹10,00,00,000/-.
Are business entities structured as Co-operative Societies eligible to receive financial assistance for undertaking new projects or expanding existing operations?
Yes, Co-operative Societies are listed as an eligible form of organization within the Small Scale Industry and Medium Scale Industry sector that can apply for financial assistance.
What is the maximum interest rate applicable per annum on term loans taken for a new project by a Medium Scale Industry unit where the sanctioned amount exceeds ₹50,00,000/-?
For term loans sanctioned to a Medium Scale Industry unit, or for any term loan amount exceeding ₹50,00,000/-, the interest rate applicable is 12% per annum.
Is a project structured as a Private Limited Company considered eligible to receive financial assistance for acquiring fixed assets like machinery and buildings?
Yes, Private Limited Companies are explicitly listed among the various forms of organizations within the Small Scale Industry and Medium Scale Industry sector that are eligible borrowers under this scheme.
What is the required maximum Debt Equity Ratio that must be maintained by an applicant if the total loan amount sought is ₹25,00,000/- or less?
For term loans sanctioned up to ₹25,00,000/-, the maximum Debt Equity Ratio (DER) required to be maintained by the borrower is 3:1.
If the proposed loan amount is above ₹25,00,000/-, what is the specific Debt Equity Ratio limit that the business must adhere to for sanction?
For term loans where the sanctioned amount is above ₹25,00,000/-, the Debt Equity Ratio (DER) that must be maintained is stipulated as 2:1.
Are existing units categorized under the Small Scale Industry or Medium Scale Industry sector permitted to apply for funding if their requirement is for modernization, expansion, or diversification purposes?
Yes, the scheme is specifically intended to provide financial assistance for expansion, modernization, diversification, and similar activities undertaken by existing Small Scale Industry and Medium Scale Industry units.
If an applicant is a Public Limited Company, does its organizational structure qualify it as an eligible borrower to seek credit facilities under this scheme?
Yes, Public Limited Companies are identified as an eligible form of organization in the Small Scale Industry and Medium Scale Industry sector for applying for financial assistance.
What is the highest ceiling placed upon the total project cost for which financial assistance may be considered by the Pondicherry Industrial Promotion Development and Investment Corporation Limited?
The total project cost ceiling for enterprises in the Small Scale Industry and Medium Scale Industry sectors, to be eligible for financial assistance, must not exceed ₹20,00,00,000/-.
What is the maximum tenure allowed for the repayment of the sanctioned loan amount, and does this period include any initial payment moratorium period?
The maximum repayment period allowed is 8 years, which includes a moratorium period that can extend up to a maximum of 2 years, depending on the project implementation schedule.
If an applicant is categorized as a Proprietary concern within the Small Scale Industry or Medium Scale Industry sector, does this structure qualify them for obtaining the financial assistance?
Yes, Proprietary concerns are explicitly mentioned as an eligible form of organization within the Small Scale Industry and Medium Scale Industry sector that qualifies as an eligible borrower.
What is the stipulated interest rate per annum charged on term loans and working capital loans if the total sanctioned amount falls within the range of up to ₹25,00,000/-?
For term loans and working capital loans where the amount is up to ₹25,00,000/-, the interest rate applicable is 10% per annum.
What specific type of collateral security, other than the mortgage or hypothecation of proposed fixed assets, must be offered to secure the term loan as per the Corporation’s policy?
The applicant must offer collateral security in the form of immovable property, which must conform to the specific lending policy norms established by the Pondicherry Industrial Promotion Development and Investment Corporation Limited.
Are businesses that are structured as Partnership firms considered eligible organizations for applying for term loans meant for acquiring new fixed assets?
Yes, Partnership firms are included in the list of eligible organizational forms in the Small Scale Industry and Medium Scale Industry sector that may apply for the financial assistance.