NEED Scheme - The Tamilnadu Industrial Investment Corporation Ltd

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New Entrepreneur cum Enterprise Development Scheme (NEEDS)

Objective	To extend financial assistance to educated first generation entrepreneurs to start a new business activity.
Purpose	Under NEEDS, educated youth will be identified, given entrepreneurial training, assisted in preparation of business plan, helped to tie up with banks/TIIC/SIDBI and linked with major industrial clients to set up new business ventures.
Eligibility	Micro and Small enterprises in manufacturing and service sectors. Pass in HSC Age group of 21-45 years under General category and 21-55 years under special category (Women/SC/ST/BC/MBC/Minorities/Ex-serviceman/ Transgender/Differently abled persons) The applicant should be a resident of Tamil Nadu State for not less than 3 years.
Constitution	Proprietary / Partnership
Project Cost	Minimum Project Cost: Rs.10.00 lakhs Maximum project cost: Rs.500.00 lakhs. Cost of land may be included in the project cost at Guideline value or market value whichever is lower. Cost of construction of building such as office, workshed, laboratory etc. can be included in project cost subject to the condition that the cost of building shall not exceed 25% of project cost. The valuation of building eligible for subsidy will be assessed by Branch manager, TIIC in respect of assisted units or as certified by the Chartered engineer whichever is lower. In respect of service enterprises, investment in capital expenditure should not be less than 25% of the total project cost. In respect of Plant & machinery, only new machinery and secondhand machinery directly imported by the entrepreneur would be eligible. The cost of leased/rental building shall not be included in the project cost. Project cost will include capital expenditure and margin money for working capital. Capital expenditure will include investment on land, building, plant & machinery only. Projects without capital expenditure will not be eligible for finance under the scheme. Self-financed projects are not eligible.
Promoter’s Contribution	10% for general category entrepreneurs. 5% for special category entrepreneurs.
Fees Structure	The investigation fee, upfront fee, Service charges are applicable as per existing guidelines for the term loans.
Delegation of Power	As per existing delegation of powers for sanction
Debt Equity Ratio	9:1 for general category entrepreneurs. 19:1 for special category entrepreneurs.
Repayment Period	9 years (including holiday period of 2 years)
Rate of Interest	PLR + 0.25% pa
Collateral Security	As per extant guidelines applicable for General Scheme and Subject to eligibility, loans upto Rs.50 lakhs will be covered under Hybrid Scheme of CGTMSE. Proposals with involvement of Land & Building in primary security shall be covered under CGTMSE coverage, provided the value of land shall not be included in project cost/security purpose. The value of primary land shall cover atleast 25% of the loan amount. For other cases : 50% For Mobile Vehicles : 100%