General Scheme For New & Existing Entrepreneurs
| Objective | To extend financial assistance to new and existing units in manufacturing/ processing sector and service sector units for its establishment, expansion, modernization and diversification and purchase of vehicles. | |||||||||||||||||||||||
| Purpose | The term loan shall be utilised for the following purpose: Purchase of land outside the Estate (SIDCO/SIPCOT). Purchase of SIDCO/SIPCOT plots through second or subsequent sales. Construction of Factory related building, Commercial Complex/Convention Centre/Community hall/Marriage Hall, Warehouse/Storage godown, Hotel, purchase of Second hand Hotel/Resort. Purchase & erection of Machinery/Equipments including second hand machinery Purchase of all types of vehicles as exclusive project to be registered as public carrier within the State of Tamilnadu excluding fishing boats/trawlers. |
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| Constitution | Proprietary, Partnership & Corporate bodies are eligible. | |||||||||||||||||||||||
| Quantum of Loan |
a) Second Hand Hotels / Resorts: Minimum: Rs 2.00 crores b) Transport: Upto 20 vehicles per unit. c) Others:
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| Promoters Contribution |
a) Second hand Hotels / Resorts: New units : 35% Existing units : 25% b) Transport: Loans upto Rs.10 lakhs : 20% Loans more than Rs.10 lakhs : 25% Auto/Share Auto/Minidor : 15% c) Others: i) For project cost (proposed) upto Rs.200.00 lakhs (New & Existing): 20% ii) For projects cost (proposed) exceeding Rs.200.00 lakhs (New Units): 35% iii) For projects cost (proposed) exceeding Rs.200.00 lakhs (Existing Units): 25% |
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| Debt Equity Ratio |
a) Second hand Hotels / Resorts: 2:1 b) Project cost upto Rs.200.00 lakhs (New & Existing): 4:1 c) Project cost above Rs.200.00 lakhs (New & Existing): 2:1 d) No DER stipulation for purchase of transport vehicles. |
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| Repayment Period |
a) Project cost upto Rs.200.00 lakhs: 6 years including moratorium of 6 months to 24 months. b) Project cost above Rs.200.00 lakhs: 9 years including moratorium of 6 months to 24 months. c) Transport: 56 monthly instalments excluding 4 months moratorium if body building is involved and 3 months moratorium for others. |
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| Collateral Security |
a) Second Hand Hotels / Resorts: (i) Existing units: 75% (subject to compliance of eligibility criteria (ii) New units: 100% (including units with less than 3 years existence). Besides, the movable assets of the unit viz., furniture & fittings, Kitchen equipments etc. shall be offered as additional security. The collateral security shall be easily marketable property in the form of land and building located in Corporation / Municipal / Town limits. No agricultural property / thirty party collateral will be accepted. b) Transport:
c) Others: i. For Term Loan Upto Rs.15.00 crores, for both New/Existing (assisted/non-assisted) units, where building construction is involved, the existing collateral security norms as given below is applicable:
i. For Term Loan above Rs.15.00 crores, for both New/Existing (assisted/non-assisted) units, where building construction is involved, it will be decided on a case to case basis by the EC/Board depending on the Risk Perception of the project, networth of the company as compared to the loan amount, background of the promoters and track record of the applicant company / associate concern. ii. Term loan for purchase of Machinery: 50% |
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