Financial Assistance for Purchase of Existing Assets
By Pondicherry Industrial Promotion Development and Investment Corporation (PIPDIC)
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Quick Answer
PIPDIC term loans of at least ₹5 lakh for Puducherry units with 2+ years in operation to buy existing land, buildings and machinery.
- Funding amount
- ₹5L+
- Funding type
- Debt
- Application deadline
- Rolling
- Location
- Puducherry
About this loan
This scheme from the Pondicherry Industrial Promotion Development and Investment Corporation Limited (PIPDIC), with the Department of Industries & Commerce, Puducherry, lends to industrial and commercial units that have run for at least two years. You use the loan to buy existing land, buildings and machinery, provided they meet residual life criteria.
The loan is a term loan with a minimum of ₹5,00,000. The maximum follows the general terms for term loans. Interest is 1% above the prevailing rate. You repay over 5 years (60 months), including a 1-year (12-month) moratorium.
The whole application is online. You register, create a profile, complete the loan application and pay a nominal application fee.
Eligibility
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Grant providers
Provider
Pondicherry Industrial Promotion Development and Investment Corporation (PIPDIC)Puducherry · Puducherry · India
Benefits & Funding
- Amount
- ₹5L+
- Fund type
- Debt
- Equity
- Equity-free
- Repayment
- Repayable
What You Get
The scheme provides financial assistance in the form of term loans, with a minimum loan limit of ₹5,00,000. The maximum loan amount is subject to the general terms and conditions applicable to term loans, ensuring flexibility for various business needs. An interest rate of 1% above the prevailing rate will be applied, which fluctuates with market conditions. The repayment period is set at 5 years (60 months), which includes a generous moratorium period of 1 year (12 months), providing businesses with initial relief before commencing repayments. This financial support is specifically designed to facilitate the purchase of existing land, buildings, and machinery, aiding units in their expansion and modernization efforts.
- Disbursement
- Lump Sum
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
After the application and all required documents are submitted online, the application will undergo an initial screening. PIPDIC’s internal committee will review the details provided, verify the unit's existence for a minimum of 2 years, and assess its track record. Further evaluation will focus on the proposed asset purchase and its financial viability. Shortlisted applications will proceed through a detailed assessment process as per PIPDIC's standard term loan procedures, which may involve site visits and additional due diligence before final approval and disbursement.
Application Process
- 1
Register
Create a new customer account on the PIPDIC website.
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How to apply
Four steps from draft to disbursement — one action each.
- 1
Draft your application
Answer the form inside the grant tracker — AI drafts each response using your past answers, so you're not starting from a blank page.
- 2
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 3
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 4
Submit on the official portal
Use the official application link and verify all details before final submission.
- 5
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the purpose of the Financial Assistance for Purchase of Existing Assets scheme?
The scheme aims to assist existing industrial and commercial units in Puducherry by providing financial assistance to purchase existing land, buildings, and machinery that have a prescribed residual life. This helps businesses expand or upgrade their physical assets.
Who is eligible to apply for this scheme?
The scheme is applicable to units that have been in existence for a minimum period of 2 years and possess a good track record of operations. This targets established businesses rather than new startups.
What is the minimum and maximum loan amount available?
The minimum loan amount is ₹5,00,000. The maximum loan amount is not explicitly stated and is determined based on the general terms and conditions applicable to term loans by PIPDIC.
What is the repayment period and moratorium for the loan?
The loan has a repayment period of 5 years (60 months), which includes a moratorium period of 1 year (12 months). During the moratorium, businesses do not need to make repayments, providing financial flexibility.
How can I apply for this financial assistance?
Applications are accepted online through the PIPDIC website. The process involves customer registration, profile creation, filling out a multi-step loan application form, uploading necessary documents, and paying an application fee.
Are there any application fees?
Yes, there is an application fee. For loans up to ₹25,00,000, the fee is ₹100. For loans above ₹25,00,000, the fee is ₹200.
Sources
Data on this page is compiled from official program and provider references.
