Funding Scheme of Micro and Small Enterprises – A Complete Guide
As a measure to develop the effectiveness and productivity of the MSE or Micro & Small Enterprises and of their associations in the nation. The Tamil Nadu Government has introduced a measure known as the Funding Scheme of Micro and Small Enterprises. The duty of executing and managing this scheme is entrusted with TIIC or Tamil Nadu Industrial Investment Corporation Limited. The Government of Tamil Nadu offers financial support to new or current units in MSEs with an overall project outlay of Rs. 50 lakhs under this Funding Scheme of Micro and Small Enterprises. Scroll down to check more information regarding the Funding Scheme of Micro and Small Enterprises.
What is the Purpose of the Funding Scheme of Micro and Small Enterprises?
Following is the primary purpose of the MSE funding scheme:
- To developing the infrastructural facilities in new or current industrial regions of Micro and Small Enterprises by offering financial services;
- For the creation of fixed assets in MSEs;
- To advance or develop the growth of MSEs by advancing the skills, technologies, quality, capital and market access;
- To upsurge the MSEs potential by creating self-assist groups, up-gradation of foundations, associations;
- To build facility centres for the training, testing, raw material depot, complementing production processes, etc.
Criteria to Obtain Financial Services under the Scheme
Following is the eligibility criteria for obtaining financial help under the Funding Scheme of Micro and Small Enterprises:
- New Enterprises in Micro and Small sector for processing of goods, manufacture, preservation, regardless of location;
- Current Micro and Small Enterprises scale units in Tamil Nadu state;
- New Enterprises in the sector of Micro and Small scale for service sector jobs such as food courts or restaurants, hospitals, etc.;
- Modernization, enterprise expansion, service enterprises, Technology advancing and modification.
Cost of the Project
In the case of a new project unit, the cost of the project unit will not surpass Rs. 50 lakhs. In respect of present Micro and Small Enterprises units, project cost comprising current project outlay will not surpass Rs. 50 lakhs.
Importance of Assistance
The support under the funding scheme of Micro and Small Enterprises is mentioned below:
- For new Micro and Small Enterprises, the term loan of 80% of the project cost subject to a maximum of Rs. 40 lakhs will be measured;
- For the current Micro and Small Enterprises units, a term loan of 75% of the project cost to a maximum of Rs. 37.5 lakhs will be measured.
What are the Vital Documents Required for the Application for the Funding Scheme of Micro and Small Enterprises?
Following is the list of all the essential documents required for the MSE funding scheme application:
- Memorandum of the entrepreneur;
- Submit a Partnership Deed;
- Submit a Certificate of Company Registration;
- Submit a copy of MOA (Memorandum of Association) and AOA (Article of Association);
- In case of a company, submit Certificate of Registration;
- Submit a copy of Bye-laws in case of Society;
- Submit the statement of Net-worth and Biodata concerning each of the Directors, Promoters, and Guarantors;
- Submit all the documents for KYC Compliance;
- Details of the concerned associate;
- Submit an audited balance sheet;
- Submit a copy of the Purchase Agreement and Lease Deed;
- Submit a certificate of Encumbrance;
- Building Plan;
- Submit copies of P&L Account and audited balance sheet for the concerned associate along with schedules for the previous 3 years;
- Submit a No Objection Certificate (NOC) or Approve Order from the PCB (Pollution Control Board);
- Parent documents, Tax receipt, Sale Deed, FMB Sketch, Patta Chitta, Adangal;
- Submit licenses such as EPCG or Drug License;
- Education Certificate;
- Experience Certificate in the field of technology;
Procedure for the Application of Funding Scheme of Micro and Small Enterprises
The application procedure for the Funding Scheme of Micro and Small Enterprises:
- The entrepreneurs should apply in the prescribed application for the MSEs Funding Scheme. The application can be obtained from the Branch Office of the Corporation, or you can also download the same from the website of TTIC (Tamil Nadu Industrial Investment Corporation Limited). From the home page, you have to select the download application form option under the scheme.
The list of scheme application will be shown; then you have to click on “Application for Financial Assistance for Industrial Units”.
- Enter all the vital details in the application form with the following information and submit the application form to the Branch Office or Head Office of TTIC.
- Loan Purpose;
- Name of the Unit:
- Unit Size;
- Applied Amount;
- Management Details;
- Required loan help.
- The suggested authority will inspect the application form of the funding scheme of MSE. Then the committee will inspect the same for a loan and recommend concerned authority sanction.
- The authority will consider the project both financially and technically with the consent project cost of TIIC. After the deposit of involvement by the applicant and subsidy claim receipt, the loan amount will be released to the account of the applicant.
Registration Fees for the Application of MSE Funding Scheme
The applicant has to pay the application registration fee for the scheme at the time of application registration. You can check the fee for the registration applicant from the table mentioned below:
|Detail of Loan||Registration Fee (Rs.)|
|Loans Processes by BSC or Branch Sanction Committee||10,000|
|Loans approved by RLSC (Regional Level Sanction Committee)||10 lakhs|
|Loan by Board at Main Office||50,000|
In order to uplift the infrastructural facilities in different industrial areas of MSEs by lending financial support, the Tamil Nadu government has introduced a scheme known as the Micro and Small Enterprises Funding Scheme. I hope this write-up has familiarized you with the concept of this advancement-based scheme.
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