The Tamilnadu Industrial Investment Corporation Ltd (TIIC)

The Micro Small Enterprise Funding Scheme is TIIC's startup product. It has two loans. The Proto Loan supports startups from ideation through to prototype development. The Propel Loan supports startups and early stage units that have shown proof of concept and want to take an innovation to market.

What you get

• Proto Loan: a loan repayable over 5 years with a 2-year moratorium, covered by the CGTMSE credit guarantee scheme with no other security.
• Propel Loan: a loan for capital expenditure, research and development, patent and licence costs and pre-operative expenses, repayable over a maximum of 5 years including a 1-year holiday period.
• Working capital alongside the Propel Loan, with 100% collateral security.

Who can apply

• A startup with a registered office in Tamil Nadu, registered with StartupTN and with a startup incubator
• A startup recommended by a startup incubator in the state
• Promoters who are graduates in engineering or science with at least 3 years of work experience, and a CIBIL score of 650 or above
• Proto: established no more than 2 years before applying, with a business idea that can be commercialised and scaled
• Propel: a startup that has completed ideation under Proto, or has shown proof of concept with government or incubator support
• A chief promoter or technology head aged 25 to 45

How selection works: An incubator recommendation is needed before TIIC appraises the proposal. Where a promoter has no credit history, TIIC will consider the incubator's recommendation and the promoter's bank account statements.

How to apply: Start with TIIC's loan enquiry or online loan application and ask for the startup scheme.

NEEDS is promoted by the Directorate of Industries and Commerce, Government of Tamil Nadu. It gives educated youth a route into their first business, with entrepreneurial training, business plan help and a link to banks, TIIC or SIDBI for finance. TIIC is the lender and nodal agency, and the scheme pairs a government subsidy with a loan towards building, plant and machinery.

What you get

• Entrepreneurial training and help preparing a business plan
• A government subsidy alongside a term loan for construction of a building, plant and machinery
• Repayment over 9 years including a 2-year holiday period, at a rate linked to the prime lending rate
• A 3% interest subvention for standard category customers, as listed on the NEEDS page

Who can apply

• Educated youth with a qualification from a recognized institution. The NEEDS page lists a pass in HSC, and both TIIC pages also cite degree, diploma or ITI training
• Micro and small enterprises in manufacturing or service sectors
• Proprietorships and partnerships
• Residents of Tamil Nadu for at least 3 years
• The age band differs between TIIC's pages, so check the current band with TIIC before applying

How selection works: TIIC appraises the project under its existing guidelines. Self-financed projects are not eligible.

How to apply: Use the Apply Now option on the NEEDS page or TIIC's loan enquiry.

The Flexi Working Capital Term Loan lets eligible units build inventory, meet payments to creditors and debtors, and cover extra working capital needs. For new units, a term loan finances fixed assets and the working capital term loan sits alongside it.

What you get

• A working capital term loan within minimum and maximum limits set by TIIC, with lower caps for job work and service sector units
• An option to repay after one year without any principal repayment during that year, or to repay in 30 instalments
• Renewal after one year, based on a reappraisal of the unit

Who can apply

• New units that have no working capital facility from a bank or financial institution
• Existing manufacturing or job work units with cash profit for the last two financial years and a positive networth
• Qualified professionals in management, accountancy, medicine, architecture, software and engineering
• Hospitals, hotels, restaurants, MSME product marketing and cold storage businesses in existence for 3 years with cash profit

How selection works: TIIC appraises the unit and sets the loan against its assessed working capital. Third party collateral from close family is accepted under the scheme's conditions.

How to apply: Use TIIC's loan enquiry or online application.

The General Scheme is TIIC's main term loan for industrial and service units. It finances the establishment, expansion, modernisation and diversification of a unit, and the purchase of vehicles. Loans can fund land outside SIDCO and SIPCOT estates, factory and commercial buildings, and machinery including second hand machinery.

What you get

• A term loan sized by the borrower's constitution and the project cost
• Repayment over 6 years for smaller projects and 9 years for larger ones, with a moratorium of 6 to 24 months
• Finance for vehicles that will be registered as public carriers in Tamil Nadu

Who can apply

• Proprietorships, partnerships and corporate bodies
• New and existing units in manufacturing, processing and service sectors

How selection works: The promoter contribution and debt equity ratio depend on the project cost and on whether the unit is new or existing. Collateral is usually land and buildings within corporation, municipal or town limits.

How to apply: Use TIIC's loan enquiry or online application.

Machinery Finance pays for identifiable plant and machinery, including generators, for modernisation, expansion, balancing or replacement. Transport, erection and related electrical work can be included in the project cost. Second hand machinery is also financed, including machinery imported directly.

What you get

• A term loan for machinery repayable over 7 years, including a moratorium of 6 to 12 months
• Two loan categories set by the promoters' credit profile, with more security needed in the lower tier
• Finance for second hand machinery, with a lower loan ceiling

Who can apply

• Units that have been in operation for 3 completed financial years
• Units that earned net profit over the last 3 years with no accumulated losses
• Green field units buying second hand machinery need prior Head Office approval

How selection works: TIIC sorts applications into category A or B by the promoters' CIBIL score and CMR, and sets the promoter contribution and collateral to match.

How to apply: Use TIIC's loan enquiry or online application.

Bill Finance funds MSME vendors and contractors who work for Tamil Nadu public utilities, including TANGEDCO, TANTRANSCO, GCC, CMWSSB and TWAD. TIIC advances a share of each bill, and the credit period runs up to 240 days.

What you get

• Finance on each bill, with a drawal of up to 85% of the bill amount
• A credit period of up to 240 days for each bill
• No collateral under the scheme. Security comes from post-dated cheques and personal guarantees

Who can apply

• MSME and non-manufacturing units in Tamil Nadu registered as contractors or suppliers with the utilities above
• Proprietorships, partnerships, LLPs, limited companies and one person companies

How selection works: The sanction limit is the higher of a share of the previous year's turnover on works for these utilities, or a share of work orders on hand, capped at the amount applied for.

How to apply: Write to billfinance@tiic.org or use TIIC's loan enquiry.

The state capital subsidy pays back part of what a manufacturing unit spends on plant and machinery. Micro units can apply from anywhere in Tamil Nadu. Small and medium units qualify in backward blocks, thrust sectors and agro-based industries. TIIC is the nodal agency for government subsidies for customers who take a business loan.

What you get

• A capital subsidy on plant and machinery investment, up to a stated maximum
• An additional 5% subsidy for new units set up by women, SC, ST, persons with disabilities or transgender entrepreneurs in backward areas or agro-based industries, up to a stated maximum
• An employment intensive subsidy of 5%, and a cleaner technology subsidy of 25%, each with its own cap

Who can apply

• Micro units anywhere in Tamil Nadu
• Small and medium units in backward blocks, thrust sectors and agro-based industries

How selection works: TIIC checks the unit and the investment against the scheme's rules.

How to apply: Use TIIC's loan enquiry or contact the corporation.

The generator subsidy helps manufacturers buy a new generator for their own use, up to 320 KVA including any generator they already run. It covers new and existing micro, small and medium manufacturing enterprises.

What you get

• A subsidy of 25% of the generator cost, up to a stated maximum

Who can apply

• New and existing micro, small and medium manufacturing enterprises buying a generator for captive use

How selection works: TIIC checks the purchase against the scheme's capacity and eligibility rules.

How to apply: Use TIIC's loan enquiry or contact the corporation.