Micro Small Enterprise Funding Scheme (Proto and Propel Loans for Startups)
A programme by The Tamilnadu Industrial Investment Corporation Ltd (TIIC)
Term loans for Tamil Nadu startups, from the ideation stage through to market entry, for founders an incubator has recommended.
At a glance
| Best for | Tamil Nadu startups recommended by a startup incubator, from idea to early market entry |
|---|---|
| Stage | Idea – Early revenue |
| Duration | Proto: 5 years with a 2-year moratorium. Propel: up to 5 years including a 1-year holiday period |
About Micro Small Enterprise Funding Scheme (Proto and Propel Loans for Startups)
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.
Where to apply
Other The Tamilnadu Industrial Investment Corporation Ltd (TIIC) programmes
- New Entrepreneur cum Enterprise Development Scheme (NEEDS)A government subsidy with a term loan for educated first generation entrepreneurs in Tamil Nadu starting a micro or small enterprise.
- Flexi Working Capital Term Loan SchemeA working capital term loan for new units, cash-profit units, job work units and some service businesses in Tamil Nadu.
- General Scheme for New and Existing EntrepreneursA long-term term loan for land, buildings, machinery and vehicles for new and existing manufacturing and service units.
- Machinery Finance (Equipment Finance Scheme)Loans to running units that buy plant, machinery or generators for modernisation, expansion or replacement.
- Bill Finance Scheme for Public Utility ContractorsShort-term finance on each bill for MSME contractors and suppliers to Tamil Nadu public utilities.
- Capital Subsidy for Tamil Nadu MSME Manufacturing UnitsA state capital subsidy on plant and machinery for micro units across Tamil Nadu, and for small and medium units in backward or priority areas.
- Generator SubsidyA subsidy on a new captive generator of up to 320 KVA for micro, small and medium manufacturers.
Everything about The Tamilnadu Industrial Investment Corporation Ltd (TIIC)