Scheme of Assistance to Good Borrowers: B Category helps existing industrial units and transport operators in Puducherry get term loans between ₹5,00,000 and ₹150,00,000. It is meant for businesses with a clean repayment record that want to expand, modernize, or buy new fixed assets. The scheme is offered by PIPDIC, the Pondicherry Industrial Promotion Development and Investment Corporation, under the Department of Industries & Commerce, Puducherry.
This scheme rewards borrowers who have kept up their repayments. If you run an industrial unit or a transport business, you can use these funds to buy fixed assets, upgrade your technology, or take up expansion projects. Borrowers in B Category get an interest concession of 0.5% below the normal rate. PIPDIC also raised the prompt payment rebate from 1% to 2%, which adds extra savings for borrowers who clear their installments on time.
Scheme at a Glance
Here is a quick look at the main details of this scheme.
| Detail | Information |
|---|---|
| Scheme Name | Scheme of Assistance to Good Borrowers: B Category |
| Level | State |
| Beneficiary State | Puducherry |
| Category | Business & Entrepreneurship |
| Target Beneficiaries | Existing industrial units and transport operators |
| Loan Amount | ₹5,00,000 to ₹150,00,000 |
| Interest Concession | 0.5% less than the normal rate |
| Nodal Department | Industries and Commerce Department, Puducherry |
Benefits
This scheme gives you the money needed to grow your business. The loan can be used for expansion, modernization, purchase of balancing equipment, and replacement of machinery in existing units. Repayment is spread over 3 to 5 years excluding the moratorium period. On top of the 0.5% interest concession for B Category, prompt payers now earn a rebate of 2% instead of the earlier 1%.
Eligibility
To be treated as a 'Good Borrower' under B Category, you need to meet these conditions.
- You should be an existing assisted unit with a clean repayment record.
- If you have rescheduled your loan, you should have done so no more than once and must stay regular with your current repayments.
- If your unit was assisted by other banks or institutions, your fixed assets must be free from any encumbrance.
- Existing transport loanees who have settled their loans promptly can also apply.
Collateral Security Rules
The security you offer depends on where your property is located. PIPDIC requires the immovable property to be valued by a Chartered Engineer or a valuer from the approved corporation panel.
| Property Location | Required Value |
|---|---|
| Inside Puducherry | At least 100% of the loan amount |
| Outside Puducherry (Land + Building) | At least 150% of the loan amount |
| Outside Puducherry (Land only) | At least 200% of the loan amount |
For units promoted by women, SC, ST, or differently-abled persons, the required collateral property value is reduced to 50% of the loan amount. This makes the scheme more accessible for these categories.
Application Process
You can apply online through the official PIPDIC portal at pipdic.in. Follow these steps to submit your application.
STEP 1 - Go to the PIPDIC website, click on the 'Login' menu, and choose 'New Customer' to create your profile.
STEP 2 - Use the OTP sent to your registered email to log into your dashboard.
STEP 3 - Open the 'Edit Profile' section and enter your details accurately.
STEP 4 - Click on the 'Applications' tab, go through the checklist, and fill in the multi-step loan form.
STEP 5 - Upload your promoter bio-data and all required KYC documents as prompted.
STEP 6 - Pay the application fee. It is ₹100 for loans up to ₹25,00,000, and ₹200 for higher amounts.
STEP 7 - Track your application status using the 'View My Application' link in your dashboard.
Documents Needed
Keep your documents ready before you start the application. Here are the main ones you will need.
- Registration certificate as a Micro, Small, or Medium Enterprise.
- Detailed project report for loans above ₹25,00,000.
- Copy of sale or lease deed for your work premises.
- Verified quotations from suppliers for all machinery.
- Proof of bank accounts and the last three years of audited balance sheets.
- Collateral security evidence including FMB copies, Patta, and 30-year Encumbrance Certificates.
References
Scheme Information | PIPDIC Brochure | Contact Us
FAQ's
If the collateral property is outside Puducherry, what is the mandatory value?
If the property is outside the Union Territory of Puducherry and consists of a building and land, the value must be at least 150% of the loan amount. If it is only land, the value must be at least 200%.
What interest rate concession is provided to B Category borrowers?
You receive an interest concession of 0.5% less than the normal rate offered by the corporation.
What is the maximum loan amount under this scheme?
The maximum financial assistance available is ₹150,00,000.
Are there specific rules for SC, ST, or women entrepreneurs?
Yes, for units promoted by women, SC, ST, or differently-abled persons, the required collateral property value is reduced to 50% of the loan amount.
How can I track my application?
Once you submit your application, you can track its status by clicking 'View My Application' in your customer dashboard.