SCVI-CLS

The scheme aims to extend composite financial assistance (term loan and/or working capital loan) to Artisans, Village and Cottage Industries, and Micro Enterprises promoted by residents of Puducherry. Benefits include loans up to ₹25,00,000/- per unit.

The scheme "Scheme for Cottage and Village Industries (Composite Loan Scheme)" was launched by the Pondicherry Industrial Promotion Development and Investment Corporation Limited (PIPDIC), Department of Industries & Commerce, Puducherry. The scheme aims to extend financial assistance of both term loan and/or working capital loan to new or existing micro enterprise projects. The scheme provides assistance for acquiring fixed assets, specifically for the purchase of new machinery/equipment and to meet the working capital requirement. The scheme is implemented by PIPDIC. The applications for this scheme are accepted online.

• The promoter shall be a resident of Puducherry.
• The applicant must belong to one of the following sectors -

• Artisans Village and Cottage Industries sector.
• Small Industries in the tiny sector.
• Micro Enterprises projects.

• The loan application purpose must be for assistance for fixed assets and/or working capital.
• The cost of machinery must have a ceiling of ₹25,00,000/- per unit.

• Financial assistance (Term Loan and/or Working Capital Loan) up to a maximum of ₹25,00,000/- per unit.
• Loan proceeds may be used for assistance for fixed assets and/or working capital.
• Loan proceeds may be considered for the purchase of new machinery/equipment and to meet the working capital requirement.
• The maximum repayment period is 8 years, including a moratorium period of maximum 1 year.

##### Disbursement Conditions

• The Debt Equity Ratio (DER) required for loans under this scheme up to ₹25,00,000/- is 3:1.
• Term loans and working capital loans up to ₹25,00,000/- are charged an interest rate of 10% (Ten per cent) per annum.
• A concessional rate of interest, 0.5% (zero point five per cent) less than the normal rate, is charged for units promoted by Women, Scheduled Caste (SC), Scheduled Tribe (ST), or Differently Abled persons.

##### Conditions

• _Collateral security in the form of immovable property shall be offered, apart from the mortgage/hypothecation of proposed fixed assets._
• _The value of immovable property situated in the Union Territory of Puducherry offered as security must be not less than the amount of the term loan sanctioned._
• _If the immovable property is situated outside the Union Territory of Puducherry, its value must be not less than 150% of the loan amount if it includes land with a building._
• _If the immovable property offered outside the Union Territory of Puducherry is only land, its value must be not less than 200% of the loan amount._
• _For units promoted by Women, Scheduled Caste (SC), Scheduled Tribe (ST), or Differently Abled persons, the value of the property to be offered as collateral security is reduced and fixed at 50% (Fifty per cent) of the loan amount._
• _The valuation of properties offered as security shall be assessed by engaging Chartered Engineers/valuers from the approved panel of the Corporation._