ENTREPRENEUR DEVELOPMENT SCHEME

1. Objective: This scheme has been introduced with the specific aim of
encouraging entrepreneurship amongst persons from economically and socially
disadvantaged backgrounds who wish to promote their own enterprise, to
generate income and to lead a life of dignity.
2. Eligibility:
Persons without any asset back up but having relevant qualifications and
experience for implementing viable project i.e., first generation
entrepreneurs. Ideally entrepreneurs who are engaged in some
manufacturing/service/value addition activity shall be targeted under
the scheme.
The promoters should have knowledge/experience in the particular line of
proposed activity.
Existing small units requiring assistance for additional machinery / needs
additional working capital
For transport loan cases, assistance shall be considered only for OWNER
DRIVEN category i.e., entrepreneur should have valid license with
badge for Auto and Tourist Taxi endorsement for the purchase of
Tourist Taxies.. Assistance for subsequent vehicles to the same
individuals can be considered under Non-owner driven category. For
small industrial units requiring load vehicles, assistance can be also
considered under Non-owner driven category. The vehicle should be
registered as Private Vehicle in the name of the applicant unit.
3. In-Eligible Activities: Loan advances to the following activities shall not be
considered under the scheme:

Educational/Training Insitutions (including professionals /

computers etc.,) in any form

Group Loans Loans to Self Help Groups etc.,

Wholesale / Retail trading

4. Quantum of Assistance : The minimum loan assistance shall be Rs.50,000/.

The maximum loan limit shall be Rs.5.00 lakhs or 30 times on the net salary of
the two guarantors put together whichever is lower. Term and working capital

loan can be sanctioned as a composite loan as a maximum of Rs.5.00 lakhs.

Working capital can be sanctioned to units not exceeding the term loan amount
or Rs.50,000/- whichever is higher. Working capital can be sanctioned to
Artisans not exceeding Rs.50,000/- with the proper assessment.
5. Margin Money: The promoter's contribution shall be a minimum of 10% on
the project cost.
6. Repayment:- The repayment shall be fixed between two and five years with a
moratorium of three to six months. It shall be fixed based on the cash flow and
future life of the equipments. For units purchasing electronic items, repayment
will be 3 years.
7. Rate of Interest: Click here for Rate of Interest

The rate of interest shall be fixed at 15.25% (PLR + 1.25%) p.a. with
reset clause whenever the Corporation revises the interest rate..

Incase of default, the interest shall be charged on compound basis at

monthly rest, besides penal interest of 2.5% on the defaulted EMI for the
defaulted period.

8. Security :

Primary assets shall be mortgaged / hypothecated to TIIC. In case of loan

for expansion, charge on the existing assets will be extended.

Third party guarantee shall be obtained as under:o For loans upto Rs.2.00 lakhs - from one person
o For loans above Rs.2.00 lakhs - from two persons

The guarantors should be an employee of Central / State Government or

Central / State Government undertakings or Public Sector Banks /
Financial Institutions or any other organisations / bodies established by
Central / State Government (inclusive of Co-operative Societies and
educational institution established by State and Central Government).
The guarantor's age is restricted to 50 years.
or

The guarantor should be a person owning land / land and building worth
equal to or more than 2 times of the loan amount. Value of the property

shall be assessed by a TIIC official.

The guarantors age is restricted to 60 years.

9. Salient Features:

If the Applicant / Spouse / Children owns immovable property, then such

applicants need not be considered under the scheme..

The pre-operative expenses payable by the promoter such as processing

fee, can be included in the project cost. However, the promoter has to pay
1% on the loan amount initially and 0.5% on the loan amount sanctioned
at the beginning of every year as RISK COVERAGE FUND as the entire
risk is borne by the Corporation.

The procedures for considering proposals and for sanction of loans under
the scheme are simple and hence quick. The hassle free and easy process
of TIIC, devoid of laborious paper work and a welcome relief for the
entrepreneurs.