Scheme for Cottage and Village Industries (Composite Loan Scheme) provides very important financial support to artisans, village industries, cottage units, and micro enterprises in Puducherry to support business growth. This scheme offers term and working capital loans up to ₹25,00,000 to help you purchase machinery and manage daily operations through an easy online application process.
Scheme for Cottage and Village Industries (Composite Loan Scheme) - Introduction
Scheme for Cottage and Village Industries (Composite Loan Scheme) extends composite financial support, including term loans and working capital, to talented artisans, village and cottage industries, and micro enterprises based in Puducherry. If you are a resident looking to start or expand your small business, this scheme helps you acquire new machinery and equipment well.
Pondicherry Industrial Promotion Development and Investment Corporation Limited (PIPDIC) under the Department of Industries and Commerce, Puducherry, implements this program. Whether you run a new project or manage an existing micro enterprise, this scheme provides the capital needed to build your professional foundation. You should submit your application through the official online portal to get scheme benefit.
Key Information
| Scheme Name | Scheme for Cottage and Village Industries (Composite Loan Scheme) |
|---|---|
| Level | State |
| Scheme for | Individual |
| Beneficiary States | Puducherry |
| Category | Business and Entrepreneurship |
| Target Beneficiaries | Business Entity |
| Benefit Type | Cash |
| DBT Scheme | No |
| Nodal Department | Industries and Commerce Department, Puducherry |
Benefits
This scheme helps your business with substantial financial backing:
| Benefit Detail | Value |
|---|---|
| Maximum loan amount per unit | ₹25,00,000 |
| Maximum repayment period | 8 years |
| Maximum moratorium period | 1 year |
| Standard interest rate | 10% per annum |
| Concessional interest rate for SC/ST/Women/Differently abled | 9.5% per annum |
You can use these funds to purchase new machinery, equipment, and cover working capital needs. for example, if Ramesh, a local artisan, applies for a loan to buy a new weaving loom, he can receive project support up to ₹25,00,000 with a manageable 3:1 debt-equity ratio.
Security Norms: You must offer immovable property as collateral. Properties inside Puducherry must have a value equal to the loan amount, while land outside Puducherry requires a valuation of 200% of the loan amount, or 150% if it includes a building. for women, SC/ST, or differently abled entrepreneurs, the collateral requirement is reduced significantly to 50% of the loan amount.
Eligibility
To qualify for this support, you must meet the following criteria:
1. You should be a permanent resident of Puducherry.
2. Your business must fall under the categories of Artisans, Village and Cottage Industries, small industries in the tiny sector, or general micro enterprise projects.
3. Your loan requirement must be for legitimate capital fixed assets or working capital needs.
4. The machinery costs for your unit should not exceed ₹25,00,000.
Application Process
You should follow these steps for the online application process:
STEP 1: Visit the official PIPDIC website and register as a new customer using your email and password.
STEP 2: Verify your account using the OTP sent to your registered email to access your dashboard.
STEP 3: Update your profile with accurate information under the Edit Profile section.
STEP 4: Navigate to the Applications tab, review the terms and conditions, and complete the digital application form.
STEP 5: Upload all required KYC and supporting documents. Make sure you include the promoter's bio-data.
STEP 6: Pay the required application fee (₹100 for loans up to ₹25,00,000; ₹200 for higher amounts) through the online payment portal.
STEP 7: Save your payment receipt and track your application status directly through the dashboard.
Documents
Prepare the following documents to make sure the application goes smoothly:
1. MSME registration certificate.
2. Lease deed or sale deed for your business premises.
3. Detailed site plan, machinery layout, and civil estimates from an approved valuer.
4. Two comparative quotations for all machinery from standard suppliers.
5. Manufacturing process flow chart and product demand statistics.
6. PAN card, Aadhaar card, Voter ID, and latest Bank passbook copies.
7. Partnership deed or Memorandum of Association (if applicable).
8. Consent letter from your bank for working capital.
9. Last 3 years of audited balance sheets and profit/loss statements for existing units.
References
Scheme Information | Download Brochure | Contact Us
FAQ's
Are there fee concessions for specific groups?
Yes, women, SC/ST, and differently abled entrepreneurs receive a 50% concession on the investigation fee.
What if my collateral is outside Puducherry?
If you offer land with a building, the valuation should be at least 150% of the loan. If it is only land, the value must be at least 200% of the loan.
What is the required Debt Equity Ratio?
Your proposal should maintain a Debt Equity Ratio of 3:1 for loans up to ₹25,00,000.
What is the maximum repayment tenure?
The maximum repayment period is 8 years, which includes a moratorium of up to 1 year.
How can I reach the department for help?
You can contact the office at 0413-2334361 or email info@pipdic.com for assistance regarding your application.