1. Purchase of equipments/machinery including tools, jigs, fixtures, energy saving equipments, generator, etc. (New indigenous and imported and second hand imported machinery for expansion and modernization).

2. 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.

3. Shall not be utilised for swapping any other liabilities.

1. Units in standard category continuously for the last three completed financial years.

2. Units which have earned cash profits continuously for the last three completed financial years.

3. Units whose networth is positive without accumulated losses.

Minimum – Rs.5.00 Lakhs

Maximum – Rs.200.00 Lakhs

> Loan amount not to exceed two times of principal repaid.

> Term Loan under General, EFS, EFS-FT, III and earlier OTL shall be taken for arriving the eligibility.

> If the account has been settled earlier, the loans repaid on settled account may also be taken into account for arriving at the eligible loan amount subject to condition that the documents of the unit who had settled the loan (primary/collateral) should not have been returned.

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.

Collateral coverage required for OTL as per existing norms is 25%.

100% for purchase of Second hand machinery purchased locally as well as for highly movable & Saleable items like computers, Sewing machinery, dies & moulds etc.

The product is to support

a)   an applicant’s genuine need for the shift

b)   in cases where a high cost borrowing has been resorted to from any source like Banks, Financial Institutions, NBFC, Private Equity, Angel investors, the market/multanis etc. for genuine business needs.

c)   To start with, this product is meant for MSMEs only. Units in the services sector are not being considered now. If there are requests from this sector, they would need to be assessed on a case-to-case basis, with the approval of Board.

a.            The reasons for shifting from their present banks should be acceptable.

b.            They could be the Corporation’s clients or non-clients.

c.            The constitution could be Proprietary, Partnership, Companies or Co-Operative Societies.

c. They should have been in existence for 3 years.

d.            The promoters should be credit worthy, financially sound and possess good managerial capability.

e.            Their project should be viable.

f. Their accounts must be in the ‘Standard asset’ category for atleast 3 years. Non-performing assets will not be taken over; the related high cost borrowings will also be not considered for any replenishment of loan.

g.            The units should have registered Net profits in the last 3 years.

h.           Credit rating should be TIIC-PB and more.

i. The applicant unit should not have been restructured or rescheduled in the preceding three years.

j. The Corporation may take over working capital limits extended by the commercial Banks/Financial Institutions along with Term Loan if the limits are within the maximum WCTL permissible.

k.            The application of units where the projects undertaken by them have not been completed will not normally be taken over.

l. The unit’s production / sales performance should not be in a bad state of stagnation or decline nor should the unit show any sign of loosing market.

The quantum will be the least of the following:

a)   75% of the value of fixed assets financed by the previous financier.

b)  The loan outstanding with the Bank / Financial Institution.

c)   Book value of assets whichever is least.

> In case of working capital limits, the actual outstanding with Bank

> In case of replacement of high cost borrowing, the actual outstanding

Minimum: Rs.25 lakhs

Maximum: Need based

a)      All securities as offered by the applicant for his existing loan will be switched to TIIC and additional security if required to meet shortfall as per the norms of the Corporation.

b)      A fresh revaluation may be done by TIIC for primary & collateral security to assess risk coverage.

c)       Where the unit is unable to shift the existing security to TIIC, we may accept alternate security with the permission of sanctioning authority.

d)      Personal guarantee of all promoters shall be obtained.

e)       For replacement of high cost borrowings: 150% collateral security shall be offered.  For takeover of TL/WCTL from Banker TIIC norms shall apply.

> Rating by an RBI accredited agency as acceptable by the Corporation.

> The Fintech-NBFC should be registered with RBI.

> The borrower should have Minimum Net Owned Fund of Rs.20.00 Crore and loan book of Rs.50 crores  as per the latest Audited  Balance sheet of the Company

> Capital Adequacy Ratio: To be greater than 15%

> Net NPA: Less than 3%

> The borrower must have track in lending / financing of at least 3 years with positive networth.

The loan together with interest, costs, expenses, penal interest and all other monies dues and payable by the borrower under the financial assistance shall be secured by

Exclusive first charge by way of hypothecation of book debts and receivables of secured/unsecured loans provided by the Borrower to MSE beneficiaries and which are standard assets in the Books of the Borrower as per extant RBI guidelines with a minimum asset cover of 1.33 times.

The receivables of unsecured loan provided by the Borrower to corporate MSE beneficiaries shall not be eligible under the assistance.

The Borrower / Security Trustee shall hold in trust for TIIC all the securities actionable claims, obtained / to be obtained by it from / as security in respect of financial assistance made available to MSE beneficiaries out of the financial assistance extended by TIIC. The Borrower shall promptly make good the shortfall in security, if any, during the currency of the loan.

Investigation fees : NIL

Upfront fees: 0.25% of the sanctioned amount.

Service Charge: NIL

> Rating by an RBI accredited agency as acceptable by the Corporation.

> The MIF-NBFC should be registered with RBI.

> Minimum Net Owned Fund of Rs.25.00 Crores as per the latest Audited   Balance sheet of the Company.

> Capital Adequacy Ratio: To be greater than 17%

> Net NPA: Less than 3%

> The borrower must have track in Micro Finance operation for at least 3 years.

Investigation fees : NIL

Upfront fees: 0.25% of the sanctioned amount.

Service Charge: NIL