Scheme of Assistance to Good Borrowers: A Category supports existing small and medium industrial units in Puducherry with special financial help. It offers term loans from ₹5,00,000 to ₹150,00,000 and a 1% interest concession for businesses that keep a very good record of timely repayment. Eligible entrepreneurs can use the funds for expansion, modernization, or replacing old machinery. As of August 2026, the scheme continues to accept applications through the official PIPDIC online portal.
Pondicherry Industrial Promotion Development and Investment Corporation Limited (PIPDIC) launched this scheme under the Industries and Commerce Department, Puducherry. It is meant for units that have already taken loans and repaid them regularly. These borrowers get easier access to bigger loans at a lower interest rate for their next stage of growth.
Scheme of Assistance to Good Borrowers: A Category - Introduction
The scheme gives dedicated financial support to existing borrowers who keep a very good record of timely loan repayment. PIPDIC operates it for small and medium scale industries in Puducherry that need money for growth. The loan amount starts at ₹5,00,000 and goes up to ₹150,00,000, and repayment is spread over 3 to 5 years excluding the moratorium period.
Funds can be used to acquire fixed assets, modernize operations, expand capacity, buy balancing equipment, or replace old machinery. For 'A' Category borrowers, the interest rate stays 1% lower than the normal rate. The same scheme also covers 'B' Category borrowers, who get a 0.5% concession as per the terms of the Corporation.
Key Information
| Detail | Information |
|---|---|
| Scheme Name | Scheme of Assistance to Good Borrowers: A Category |
| Launched By | PIPDIC, Industries and Commerce Department, Puducherry |
| Scheme For | Existing good borrowers of small and medium industries |
| Beneficiary State | Puducherry |
| Category | Business and Entrepreneurship |
| Benefit Type | Cash loan |
| Loan Amount | ₹5,00,000 to ₹150,00,000 |
| Interest Concession | 1% for 'A' Category, 0.5% for 'B' Category |
| Repayment Period | 3 to 5 years excluding moratorium |
| Application Mode | Online |
Benefits
The scheme helps a business grow with strong financial backing. The main benefits are listed below:
| Type | Benefit |
|---|---|
| Loan Amount | ₹5,00,000 to ₹150,00,000 |
| Interest Concession | 1% lower than normal rate for 'A' Category |
| Repayment Period | 3 to 5 years excluding moratorium |
| Fund Use | New units, expansion, modernization, machinery replacement |
The money can be used to set up new units, expand existing facilities, or purchase modern machinery. Fixed assets should be kept free from encumbrance and immovable property has to be offered as collateral. For example, if a small manufacturing unit in Puducherry has been operational for over three years with a clean credit history, it can use this scheme to upgrade machinery at a lower interest rate.
Eligibility
To qualify for this financial support, the applicant must meet the following criteria:
- The unit must be an operational medium or small scale industry.
- The business must have been running for more than 3 years.
- The account must be classified under the 'A' Category, meaning the borrower is regular with repayments.
- There should be no history of loan reschedulement.
- For borrowers from another bank, fixed assets must be completely free from any claims or encumbrance.
Application Process
Online Application Steps
Follow the steps below to apply online through the official PIPDIC portal:
STEP 1 - Visit the PIPDIC website and create a profile under the 'New customer' section.
STEP 2 - Verify the email with OTP, log in to the dashboard and complete the 'Edit Profile' section.
STEP 3 - Click on the 'Applications' tab to open the loan form.
STEP 4 - Review the checklist that includes interest rates and security details, then click 'I Agree'.
STEP 5 - Fill the multi-step form correctly, upload promoter bio-data and attach the required KYC and supporting documents.
STEP 6 - Pay the application fee of ₹100 for loans up to ₹25,00,000 or ₹200 for larger loans, and save the payment receipt.
If any issue comes up during the process, download the User Manual or call the office at 0413-2334361.
Documents
Keep these documents ready before starting the application. For loans above ₹25,00,000, specialized documentation is also required:
- MSME Registration Certificate.
- Registered Sale Deed or Lease Deed for the work premises.
- Site and building plans with machinery layout and civil estimates.
- Original comparative quotations from at least two standard suppliers.
- Detailed Project Report (DPR).
- Partnership Deed or Memorandum of Association, depending on the business type.
- KYC documents: PAN Card, Aadhaar and bank passbook for all promoters.
- Balance Sheets and Profit and Loss statements for the last 3 years.
- Consent letter from the bank for working capital.
References
FAQ's
Is a minimum operational history required for my business?
Yes, the manufacturing unit should have been in successful operation for at least three years to be eligible.
What if my collateral is located outside Puducherry?
If the property is outside the territory, the required value for land and building must be at least 150% of the loan amount. If it is only land, the value must be at least 200%.
Can I apply if I borrowed from another bank earlier?
Yes, if the track record as a 'Good Borrower' is clean and the current fixed assets are free from any previous financial encumbrance.
How does the interest rate concession work?
As an 'A' Category borrower, the unit automatically gets a 1% interest rate reduction compared to the standard lending rates of the Corporation. 'B' Category borrowers get a 0.5% reduction.