The Tamilnadu Industrial Investment Corporation Ltd
(A Government Of Tamil Nadu Undertaking)
Funding Success...

Open Term Loan Scheme

 

Purpose / Utilisation i) Purchase of equipments / machinery including tools, figs, fixtures, energy saving equipments, generator etc (New indigenous and imported new and second hand imported machinery for expansion and modernisation).

ii) Construction of additional building subject to a maximum of 25% of the proposed project cost of the scheme on condition that the land on which building is proposed to be constructed is already mortgaged to TIIC or should be mortgaged before availing the loan.

iii) Shall not be utilized for swapping any other liabilities.

Eligibility
  1. Units should have paid a minimum of 12 quarterly instalments or 36 monthly instalments and in standard category continuously for the past three years.
  2. Units which have earned cash profit continuously for the last 3 completed financial years.
  3. Net worth should be positive continuously for the last 3 completed financial years.
  4. The unit should have been in existence for 3 years after commencing its operations.
Quantum of Assistance Minimum of  Rs. 5 lakh and maximum of Rs. 150 lakh (or) not to exceed two times of loan repaid whichever is least.
Debt Equity Ratio Overall 2 : 1 including the proposed open term loan.
Promoter’s Contribution 15%  of cost of building / machinery.

(a) 15% for new machinery and second hand machinery to be imported directly from the foreign supplier.

(b) 25% for purchase of locally used second hand imported machinery and

(c) 30% for second hand indigenous machinery.

Selection of supplier i) Indigeneous: Suppliers shall be of the unit’s choice. However disbursement of loan is subject to inspection and valuation.

ii) Imported: As per norms for term loan.

iii) Restrictions: No traders and negative suppliers notified by the corporation.

Disbursement To be disbursed as and when demanded by customer for construction of building and purchase of machinery within the currency of sanction and subject to verification of financial norms (PC&DER), documents etc.
Repayment  Period Maximum of 5 years including one year holiday period.
Collateral Security The earlier charges created (primary and collateral) shall be extended to this open term loan also.  The percentage of collateral coverage shall be indicated in the Sanction Memorandum.

For purchase of second hand machinery locally (both indigenous and imported) additional residual / collateral to the extent of 100% of Open Term Loan proposed shall be offered.

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