a. For the entrepreneur

• liberation of funds locked up in fixed asset;   their availability to meet planned / unexpected business needs.

b. For the Corporation

• an additionality to its product span, to the comprehensiveness of credit support to its clients;
• a new avenue for the deployment of its funds;
• help for its business growth, operational performance;
• market orientation: with the product  already being in the market, to help the  corporation’s combative position.

• large and MSME sectors, engaged in manufacturing, processing and preservation activity; the services sector.

• unit’s constitution: any form, viz., proprietary, partnership and limited company;  lower priority for proprietary units.

• all eligible past / migrated clients who had been  associated with TIIC earlier with good track record and existing clients of TIIC  with good track record.

• if  they are enjoying a similar product with the other bank, no take over will be allowed.

• the applicants should have been in active operation for the last three years, at  the time of approaching TIIC.

• they should have been in Standard Asset Category continuously  for the past three years in their financier’s accounts.

• They should have registered net profits in the last three years, have positive net worth, and no cumulative losses.

• those in the sub-standard / sick category will not be eligible, as their sickness may drain fresh injection of funds.

• Those who closed their past loans with TIIC or any other financial institution / banks through the OTS route with any waiver.

For any tangible or intangible business need such as capex, servicing new orders, renovation of property / assets, reimbursement against self financed assets acquired in the last one year, funding of intangibles like brand building/ marketing, R&D, inorganic business growth, or any other bonafide business need, etc.  However, it shall exclude expenditures for speculative purposes like investing in stock markets, commodity trading, commercial real estate activity and an undertaking to be obtained to that effect from the unit.

However, If the loan is used for creation of any fixed assets relating to their business activity, the charge over those assets shall be created in favour of Corporation.

The eligible credit facility limit  of an unit may be determined as under:

       a. Gross  Cash accrual basis(*) (profit after tax +depreciation) –   75% of the gross cash accrual  as per latest audited balance sheet and P & L account multiplied by number of years of repayment proposed.  In case audited results of last completed financial year is not available / finalized, provisional CA certified results may be obtained.  However, the loan amount shall be the lower of the amount arrived from the last audited Balance Sheet and P&L account or last CA certified provisional Balance Sheet and P&L account.

(*)  Profitability estimate should be calculated based on realistic projections and DSCR shall not be less than 1.25 : 1.00

Or

• Collateral security basis –  66.67% of the assessed  value of the collateral acceptable as per our norms, offered by the unit.

The lower of (a) or (b) above shall be the eligible credit facility limit subject to the overall ceiling limit of Rs.100 lakh.

Collateral security to the extent of 150% of the credit limit sanctioned shall be obtained.

  Type of  security :

Fixed Deposit shall not be accepted as collateral security.

Considering the highly volatile marketability of agricultural land, the same shall not be accepted  as collateral security.

Third party collateral shall not be accepted under any      circumstances except properties offered by the below mentioned close relatives.

Grandfather / Grandmother / Father / Mother / Son / Daughter / Grandson / Granddaughter / Brother / Sister / Husband / Wife / Father-in-law / Mother-in-law / Brother-in-law / Sister-in-law.

Personal guarantee of the borrower and owners of property offered as collateral shall be obtained.

The collateral property shall be easily marketable and situated within Corporation / Municipal / Town limits only.  Property within Panchayat limits lying in Chennai, Kancheepuram and Tiruvallur districts may also be accepted. The properties are subject to assessment of marketability and valuation by a Committee comprising of Regional Manager, Branch Manager and LAO of the jurisdictional Region and Branch (where the security is located) and the Panel Valuers.

Personal Guarantee of the borrower and owners of property offered as collateral shall be obtained.

Those already notified  by Govt.authoritiy for acquisition for any other purpose.( e.g. widening of Highways) shall not be accepted.

Those situated in areas with features hindering easy saleability (e.g., proximity to burial / cremation grounds, high voltage power cables running across, those with difficult approach roads) shall not be accepted.