What you get
- The scheme provides financial assistance for projects with a cost up to ₹10,00,000/-. | - The assistance includes a Term Loan component covering 65% of the project cost. | - The assistance includes a Seed Capital component covering 25% of the project cost. | - The applicant receives a concessional rate of interest that is 0.5% less than the normal interest rate charged for loans. | - The applicant receives a 50% concession on the investigation fee. | - The calculated Debt-Equity Ratio (D.E.R) for the project is 1.857:1. | Repayment and Term Details | - The repayment period for the Term Loan is 6 to 8 years, which includes a moratorium period of 1 to 2 years. | - The repayment period for the Seed Capital is 10 years. | - The Promoter's contribution required is 10% of the project cost. | Conditions | - _Collateral security in the form of immovable property must be offered, in addition to the mortgage or hypothecation of proposed fixed assets._ | - _For units promoted by women entrepreneurs, the value of the immovable property to be offered as security is reduced and fixed at 50% of the loan amount._ | - _The valuation of the properties offered as security must 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
What percentage of the overall project outlay is provided to applicants specifically in the form of Seed Capital under this entrepreneurial support scheme?
The financial aid structure includes a Seed Capital component that is fixed at covering 25% of the total project cost.
Regarding collateral security requirements, what value of immovable property must a woman entrepreneur offer relative to the total loan amount sanctioned?
For projects promoted by women entrepreneurs, the value of the immovable property offered as collateral security is fixed at 50% of the loan amount.
What specific types of entities and activities are eligible to receive financial assistance under this particular equity support program?
The scheme is exclusively available for all new Small Scale Industrial units and service activities that are established by a woman entrepreneur.
What is the stipulated maximum repayment tenure specifically set for the Seed Capital portion of the financing provided by the Corporation?
The maximum repayment period allowed for the Seed Capital component of the financial assistance is set at 10 years.
What is the maximum ceiling established for the overall cost of the project that can be considered for assistance through this financing mechanism?
The maximum overall project cost eligible to receive support under this scheme is limited to up to ₹10,000,00/-.
What is the mandatory minimum financial contribution required from the promoter of the enterprise towards the total cost of the approved project?
The applicant must provide a Promoter’s contribution which is mandated to be 10% of the total project cost.
Is there an initial period of relaxation or a moratorium included before the required repayment schedule for the Term Loan officially begins?
Yes, the repayment period of the Term Loan includes a moratorium period that can extend from 1 to 2 years.
Do applicants belonging to the women entrepreneur category receive any reduction regarding the standard investigation fee levied during the application process?
Yes, women entrepreneurs are granted a substantial 50% concession on the investigation fee otherwise applicable to the loan amount.
What is the calculated standard rate charged for the investigation fee on term loan applications submitted for amounts up to ₹25,00,000/-?
The standard investigation fee is calculated at 0.50% of the term loan applied, plus the applicable service tax charges.
What is the base interest rate per annum utilized by the Pondicherry Industrial Promotion Development and Investment Corporation for loans up to ₹25,00,000/-?
The normal base interest rate per annum charged by the Pondicherry Industrial Promotion Development and Investment Corporation for loans up to ₹25,00,000/- is 10%.
What is the maximum duration provided for the repayment of the Term Loan component disbursed to successful applicants of this program?
The Term Loan repayment period ranges from 6 to 8 years, depending upon the implementation requirements of the project.
How much of the total project expenditure can be covered by the Term Loan component provided through this specific financial assistance package?
The Term Loan component is designed to cover 65% of the total project cost, which constitutes a significant portion of the required finance.
Are women entrepreneurs eligible to receive a reduced rate compared to the standard interest rate generally charged for comparable loans?
Yes, women entrepreneurs are eligible for a concessional rate of interest which is 0.5% less than the normal interest rate applied to loans.
Could you please specify the calculated Debt-Equity Ratio (D.E.R) that is mandated for projects applying for funding through this women entrepreneurs initiative?
The required Debt-Equity Ratio (D.E.R) that must be maintained for projects financed under this scheme is precisely 1.857:1.