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.
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.
promoters should have knowledge/experience in the particular line of
small units requiring assistance for additional machinery / needs additional
transport loan cases, assistance shall be considered only for “OWNER
DRIVEN” category i.e., entrepreneur should have valid license with badge
for Auto and Tourist Taxi endorsement for the purchase of Tourist Taxies..
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. The vehicle should be registered as Private Vehicle in the name of
the applicant unit.
Loan advances to the following activities
shall not be considered under the scheme:-
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.50,000/. The maximum loan limit shall be Rs.5.00 lakhs
or 30 times on the net salary of the two guarantors put together whichever is
lower. Term and working capital loan can be sanctioned as a composite loan as a
maximum of Rs.5.00 lakhs. Working capital can be sanctioned to units
not exceeding the term loan amount or Rs.50,000/- whichever is higher.
Working capital can be sanctioned to Artisans not exceeding Rs.50,000/- with the
5. Margin Money:
The promoter's contribution shall be a minimum of 10% on the project cost.
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 cash flow
and future life of the equipments. For units purchasing electronic items,
repayment will be 3 years.
7. Rate of Interest:
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Rate of Interest
8. Security :
Primary assets shall be mortgaged /
hypothecated to TIIC.
In case of loan for expansion, charge on
the existing assets will be extended.
Third party guarantee
shall be obtained as under:-
The guarantors should be
an employee of Central / State Government or Central / State Government
undertakings or Public Sector Banks / Financial Institutions or any other
organisations / bodies established by Central / State Government (inclusive
of Co-operative Societies and educational institution established by
State and Central Government). The guarantor's age is restricted to 50
The guarantor should be a
person owning land / land and building worth equal to or more than 2 times
of the loan amount. Value of the property shall be assessed by a TIIC
age is restricted to 60 years.
the Applicant / Spouse / Children owns
immovable property, then such
applicants need not be considered
under the scheme..
pre-operative expenses payable by the
promoter such as processing fee, can
be included in the project cost.
However, the promoter has to pay 1% on
the loan amount initially and 0.5% on
the loan amount sanctioned at the
beginning of every year as RISK
COVERAGE FUND as the entire risk is
borne by the Corporation.
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 a welcome relief for the