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1. Objective: This
scheme has been introduced with the specific aim of encouraging
entrepreneurship amongst persons from economically and socially disadvantaged
backgrounds who wish to promote their own enterprise, to generate income and to
lead a life of dignity with a special focus on women.
2. Eligibility:
-
Persons
without any asset back up but having relevant qualifications and experience
for implementing viable project i.e., first generation entrepreneurs.
Ideally entrepreneurs who are engaged in some manufacturing/service/value
addition activity shall be targeted under the scheme.
-
The
promoters should have knowledge/experience in the particular line of
proposed activity.
-
Existing
small units requiring assistance for additional machinery / needs additional
working capital
-
For
transport loan cases, assistance shall be considered only for “OWNER
DRIVEN” category i.e., entrepreneur should have valid license with badge.
Assistance for subsequent vehicles to the same individuals can be considered
under Non-owner driven category. For small industrial units requiring
load vehicles, assistance can be also considered under Non-owner driven
category.
3. In-Eligible
Activities:
Loan advances to the following activities
shall not be considered under the scheme:-
-
Educational/Training
Insitutions (including professionals / computers etc.,) in any form
-
Group Loans – Loans to
Self Help Groups etc.,
-
Wholesale / Retail trading
4. Quantum of Assistance : The
minimum loan assistance shall be Rs.30,000/- and the maximum is Rs.5.00 lakhs
for a single proposal put by individual promoters in the manufacturing and
service sectors (including Road Transport Operators).
5. Margin Money:
The promoter's contribution shall be a minimum of 10% on the project cost.
6. Repayment:-
The repayment shall be fixed between two and five years with a moratorium of
three to six months. It shall be fixed based on the merits of the
case and repayment capacity of the applicant. The loan is repayable in
Equated Monthly Instalments (EMI).
7. Rate of Interest:
-
The rate of interest shall be fixed at
15.75% p.a. with reset clause at the beginning of every financial year.
-
Incase of default, the interest shall be
charged on compound basis at monthly rest, besides penal interest of 2.5% on
the defaulted EMI for the defaulted period.
8. Security :
If the applicant/spouse/children owns immovable property, such applicant would
ordinarily be not encouraged under the scheme.
9.
Salient Features:
- The promoter should be introduced by
a mentor who will undertake to guide
the promoter in implementation and
successful operation of the venture
besides encouraging the promoter to
repay the loan promptly.
- The pre-operative expenses payable
by the promoter such as processing
fee, guarantee fee etc., can be
included in the project cost.
Credit guarantee premium of 1% will be
charged for being covered under Credit
Guarantee Fund Trust Scheme.
- The procedures for considering
proposals and for sanction of loans
under the scheme are simple and hence
quick. The hassle free and easy
process of TIIC, devoid of laborious
paper work and formalities of
providing collateral security is
indeed helpful and a welcome
relief for the entrepreneurs of the
future.
** The
sanction under the scheme has been been
temporarily stopped since 01.04.2012 since the overall exposure limit
under CGTMSE has been exhausted . |
