{"id":4081,"date":"2021-04-12T09:09:29","date_gmt":"2021-04-12T09:09:29","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=4081"},"modified":"2021-04-12T09:13:38","modified_gmt":"2021-04-12T09:13:38","slug":"funding-scheme-of-micro-and-small-enterprises","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/funding-scheme-of-micro-and-small-enterprises\/","title":{"rendered":"Funding Scheme of Micro and Small Enterprises \u2013 A Complete Guide"},"content":{"rendered":"\n<p class=\"has-drop-cap\">As a\nmeasure to develop the effectiveness and productivity of the MSE or Micro &amp;\nSmall Enterprises and of their associations in the nation. The Tamil Nadu\nGovernment has introduced a measure known as the Funding Scheme of Micro and\nSmall Enterprises. The duty of executing and managing this scheme is entrusted\nwith <strong><em>TIIC\nor Tamil Nadu Industrial Investment Corporation Limited<\/em><\/strong>. The Government\nof Tamil Nadu offers financial support to new or current units in MSEs with an\noverall project outlay of Rs. 50 lakhs under this Funding Scheme of Micro and\nSmall Enterprises. Scroll down to check more information regarding the Funding\nScheme of Micro and Small Enterprises.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a549fb4c5086\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a549fb4c5086\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/funding-scheme-of-micro-and-small-enterprises\/#What_is_the_Purpose_of_the_Funding_Scheme_of_Micro_and_Small_Enterprises\" title=\"What is the Purpose of the Funding Scheme of Micro and Small Enterprises?\">What is the Purpose of the Funding Scheme of Micro and Small Enterprises?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/funding-scheme-of-micro-and-small-enterprises\/#Criteria_to_Obtain_Financial_Services_under_the_Scheme\" title=\"Criteria to Obtain Financial Services under the Scheme\">Criteria to Obtain Financial Services under the Scheme<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/funding-scheme-of-micro-and-small-enterprises\/#Cost_of_the_Project\" title=\"Cost of the Project\">Cost of the Project<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/funding-scheme-of-micro-and-small-enterprises\/#Importance_of_Assistance\" title=\"Importance of Assistance \">Importance of Assistance <\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/funding-scheme-of-micro-and-small-enterprises\/#What_are_the_Vital_Documents_Required_for_the_Application_for_the_Funding_Scheme_of_Micro_and_Small_Enterprises\" title=\"What are the Vital Documents Required for the Application for the Funding Scheme of Micro and Small Enterprises?\">What are the Vital Documents Required for the Application for the Funding Scheme of Micro and Small Enterprises?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/funding-scheme-of-micro-and-small-enterprises\/#Procedure_for_the_Application_of_Funding_Scheme_of_Micro_and_Small_Enterprises\" title=\"Procedure for the Application of Funding Scheme of Micro and Small Enterprises\">Procedure for the Application of Funding Scheme of Micro and Small Enterprises<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/funding-scheme-of-micro-and-small-enterprises\/#Registration_Fees_for_the_Application_of_MSE_Funding_Scheme\" title=\"Registration Fees for the Application of MSE Funding Scheme\">Registration Fees for the Application of MSE Funding Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/blog\/funding-scheme-of-micro-and-small-enterprises\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Purpose_of_the_Funding_Scheme_of_Micro_and_Small_Enterprises\"><\/span>What is the Purpose of the Funding Scheme of Micro and Small Enterprises?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following\nis the primary purpose of the MSE funding scheme:<\/p>\n\n\n\n<ol><li>To developing the infrastructural facilities in\nnew or current industrial regions of Micro and Small Enterprises by offering\nfinancial services;<\/li><li>For the creation of fixed assets in MSEs;<\/li><li>To advance or develop the growth of MSEs by\nadvancing the skills, technologies, quality, capital and market access;<\/li><li>To upsurge the MSEs potential by creating\nself-assist groups, up-gradation of foundations, associations;<\/li><li>To build facility centres for the training,\ntesting, raw material depot, complementing production processes, etc.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Criteria_to_Obtain_Financial_Services_under_the_Scheme\"><\/span>Criteria to Obtain Financial Services under the Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following\nis the eligibility criteria for obtaining financial help under the Funding\nScheme of Micro and Small Enterprises:<\/p>\n\n\n\n<ol><li>&nbsp;New Enterprises\nin Micro and Small sector for processing of goods, manufacture, preservation,\nregardless of location;<\/li><li>Current Micro and Small Enterprises scale units\nin Tamil Nadu state;<\/li><li>New Enterprises in the sector of Micro and Small\nscale for service sector jobs such as food courts or restaurants, hospitals,\netc.;<\/li><li>Modernization, enterprise expansion, service\nenterprises, Technology advancing and modification.<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cost_of_the_Project\"><\/span>Cost of the Project<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In the\ncase of a new project unit, the cost of the project unit will not surpass Rs.\n50 lakhs. In respect of present Micro and Small Enterprises units, project cost\ncomprising current project outlay will not surpass Rs. 50 lakhs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Importance_of_Assistance\"><\/span>Importance of Assistance <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The\nsupport under the funding scheme of Micro and Small Enterprises is mentioned\nbelow:<\/p>\n\n\n\n<ol><li>For new Micro and Small Enterprises, the term\nloan of 80% of the project cost subject to a maximum of Rs. 40 lakhs will be\nmeasured;<\/li><li>For the current Micro and Small Enterprises\nunits, a term loan of 75% of the project cost to a maximum of Rs. 37.5 lakhs\nwill be measured.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Vital_Documents_Required_for_the_Application_for_the_Funding_Scheme_of_Micro_and_Small_Enterprises\"><\/span>What are the Vital Documents Required for the Application for the Funding Scheme of Micro and Small Enterprises?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following\nis the list of all the essential documents required for the MSE funding scheme\napplication:<\/p>\n\n\n\n<ol><li>Memorandum of the entrepreneur;<\/li><li>Submit a Partnership Deed;<\/li><li>Submit a Certificate of <a href=\"https:\/\/swaritadvisors.com\/private-limited-company-registration\" class=\"text-primary\"><strong>Company Registration<\/strong><\/a>;<\/li><li>Submit a copy of MOA (Memorandum of Association) and AOA (Article of Association);<\/li><li>In case of a company, submit Certificate of Registration;<\/li><li>Submit a copy of Bye-laws in case of Society;<\/li><li>Submit the statement of Net-worth and Biodata concerning each of the Directors, Promoters, and Guarantors;<\/li><li>Submit all the documents for KYC Compliance;<\/li><li>Details of the concerned associate;<\/li><li>Submit an audited balance sheet;<\/li><li>Submit a copy of the Purchase Agreement and Lease Deed;<\/li><li>Submit a certificate of Encumbrance;<\/li><li>Building Plan;<\/li><li>Submit copies of P&amp;L Account and audited balance sheet for the concerned associate along with schedules for the previous 3 years;<\/li><li>Submit a No Objection Certificate (NOC) or Approve Order from the PCB (Pollution Control Board);<\/li><li>Parent documents, Tax receipt, Sale Deed, FMB Sketch, Patta Chitta, Adangal;<\/li><li>Submit licenses such as EPCG or <a class=\"text-primary\" href=\"https:\/\/swaritadvisors.com\/drug-license\"><strong>Drug License<\/strong><\/a>;<\/li><li>Education Certificate;<\/li><li>Experience Certificate in the field of technology;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Procedure_for_the_Application_of_Funding_Scheme_of_Micro_and_Small_Enterprises\"><\/span>Procedure for the Application of Funding Scheme of Micro and Small Enterprises<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\napplication procedure for the Funding Scheme of Micro and Small Enterprises:<\/p>\n\n\n\n<ol><li>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 <strong>TTIC (Tamil Nadu Industrial Investment Corporation Limited<\/strong><sup><a href=\"https:\/\/www.tiic.org\/\"><strong>[1]<\/strong><\/a><\/sup><strong>)<\/strong>. From the home page, you have to select the download application form option under the scheme.<\/li><\/ol>\n\n\n\n<p>The\nlist of scheme application will be shown; then you have to click on <strong><em>\u201cApplication\nfor Financial Assistance for Industrial Units\u201d<\/em><\/strong>.<\/p>\n\n\n\n<ul><li>Enter all the vital details in the application\nform with the following information and submit the application form to the\nBranch Office or Head Office of TTIC<strong><em>.<\/em><\/strong><\/li><li>Loan Purpose;<\/li><li>Name of the Unit:<\/li><li>Unit Size;<\/li><li>Applied Amount;<\/li><li>Management Details;<\/li><li>Constitution;<\/li><li>Required loan help.<\/li><li>The suggested authority will inspect the\napplication form of the funding scheme of MSE. Then the committee will inspect\nthe same for a loan and recommend concerned authority sanction.<\/li><li>The authority will consider the project both\nfinancially and technically with the consent project cost of TIIC. After the\ndeposit of involvement by the applicant and subsidy claim receipt, the loan\namount will be released to the account of the applicant.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Registration_Fees_for_the_Application_of_MSE_Funding_Scheme\"><\/span>Registration Fees for the Application of MSE Funding Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p> 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: <\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong><em>Detail of Loan<\/em><\/strong>\n  <\/td><td>\n  <strong><em>Registration Fee (Rs.)<\/em><\/strong>\n  <\/td><\/tr><tr><td>\n  Loans Processes by BSC or Branch Sanction\n  Committee\n  <\/td><td>\n  10,000\n  <\/td><\/tr><tr><td>\n  Loans approved by RLSC (Regional Level Sanction\n  Committee)\n  <\/td><td>\n  10 lakhs\n  <\/td><\/tr><tr><td>\n  Loan by Board at Main Office\n  <\/td><td>\n  50,000\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>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.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/how-msme-registration-helps-in-business-growth\/\">How MSME Registration helps in Business Growth\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As a measure to develop the effectiveness and productivity of the MSE or Micro &amp; 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 [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":4088,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[34],"tags":[574],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/4081"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=4081"}],"version-history":[{"count":15,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/4081\/revisions"}],"predecessor-version":[{"id":4097,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/4081\/revisions\/4097"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/4088"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=4081"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=4081"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=4081"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}