Scheme for Cottage and Village Industries (Composite Loan Scheme)

The scheme "Scheme for Cottage and Village Industries (Composite Loan Scheme)" was launched by the Pondicherry Industrial Promotion Development and Investment Corporation Limited (PIPDIC), Department of Industries & Commerce, Puducherry. The scheme aims to extend financial assistance of both term loan and/or working capital loan to new or existing micro enterprise projects. The scheme provides assistance for acquiring fixed assets, specifically for the purchase of new machinery/equipment and to meet the working capital requirement. The scheme is implemented by PIPDIC. The applications for this scheme are accepted online.

• Financial assistance (Term Loan and/or Working Capital Loan) up to a maximum of ₹25,00,000/- per unit.
• Loan proceeds may be used for assistance for fixed assets and/or working capital.
• Loan proceeds may be considered for the purchase of new machinery/equipment and to meet the working capital requirement.
• The maximum repayment period is 8 years, including a moratorium period of maximum 1 year.

Disbursement Conditions

• The Debt Equity Ratio (DER) required for loans under this scheme up to ₹25,00,000/- is 3:1.
• Term loans and working capital loans up to ₹25,00,000/- are charged an interest rate of 10% (Ten per cent) per annum.
• A concessional rate of interest, 0.5% (zero point five per cent) less than the normal rate, is charged for units promoted by Women, Scheduled Caste (SC), Scheduled Tribe (ST), or Differently Abled persons.

Conditions

• Collateral security in the form of immovable property shall be offered, apart from the mortgage/hypothecation of proposed fixed assets.
• The value of immovable property situated in the Union Territory of Puducherry offered as security must be not less than the amount of the term loan sanctioned.
• If the immovable property is situated outside the Union Territory of Puducherry, its value must be not less than 150% of the loan amount if it includes land with a building.
• If the immovable property offered outside the Union Territory of Puducherry is only land, its value must be not less than 200% of the loan amount.
• For units promoted by Women, Scheduled Caste (SC), Scheduled Tribe (ST), or Differently Abled persons, the value of the property to be offered as collateral security is reduced and fixed at 50% (Fifty per cent) of the loan amount.
• The valuation of properties offered as security shall be assessed by engaging Chartered Engineers/valuers from the approved panel of the Corporation.

1. The promoter shall be a resident of Puducherry.
2. The applicant must belong to one of the following sectors -

• Artisans Village and Cottage Industries sector.
• Small Industries in the tiny sector.
• Micro Enterprises projects.

1. The loan application purpose must be for assistance for fixed assets and/or working capital.
2. The cost of machinery must have a ceiling of ₹25,00,000/- per unit.

Online

Registration Process

Step 1:**** Registration and Profile Creation

Visit the PIPDIC website. Click "Login". Click the “New customer” link under the “Login” menu, enter a username, email-id, password, and captcha, and then click the "Register" button.

Step 2:**** Email Verification and Login

• Use the registered email-id to log in. An OTP is sent to the registered email address.
• The applicant is then required to enter the OTP and click "Login" to access to the customer dashboard.

Step 3:**** Profile Update

• Upon successful login, the customer needs to update their profile by accessing the "Edit Profile" option (top right corner of the dashboard).
• The applicant must provide all required details. Click "Submit".

Application Process (Loan Application)

Step 1:**** Accessing the Loan Application Form

• To initiate the loan application process, the applicant must navigate from the customer dashboard by clicking on the "Applications" tab.

Step 2:**** Reviewing Checklist and Accepting Terms

• A pop-up window displaying a checklist of General Terms and Conditions, interest rate structure, investigation fees, and collateral security norms will appear for review.
• Carefully read this checklist, confirm that all necessary documents have been gathered as requested, and click the “I Agree” button to proceed to the application form.

Step 3:**** Filling the Loan Application Form

Fill the multi-step application form, providing appropriate details in all mandatory fields across the required steps.

Step 4:**** Declaration and Submission

The applicant must carefully read and agree to the comprehensive declaration provided within the application form (covering confirmation of true information, absence of unauthorized borrowing arrangements, and consent to verification) before finally ticking the "I agree to terms" checkbox and clicking the final "Submit" button for the main application form.

Step 5:**** Promoter Bio-Data and Document Upload

The system will redirect the applicant to enter the Biodata of the Promoter, Partner, or Director, which is typically a multi-step process. The necessary KYC and supporting documents must be uploaded by clicking the "Choose File" button next to each field.

Step 6:**** Application Fees Payment

• Once the entire application and bio-data submission is complete, pay the applicable application fee.

• If selecting online payment, the system automatically redirects the applicant to the payment summary page, where they verify their details and make the payment.

Step 7:**** Receiving and Saving Payment Receipt

• Upon successful payment, the user is redirected back to PIPDIC website, where a receipt for the application fee paid is generated.
• The applicant can print this receipt or save it to their computer as a PDF for future reference.

Application Status Tracking and Support

The customer can monitor the status of their submitted application (which will initially show a status like 'UNDER REVIEW') by clicking the "View My application" link on the dashboard and selecting the relevant loan application in the drop-down menu.

Application Fees

• For loans up to ₹25,00,000/-, the application fee is ₹100/-.
• For loans above ₹25,00,000/-, the application fee is ₹200/-.

Grievance Redressal / Help & Support

• The applicant can contact the Managing Director, Pondicherry Industrial Promotion Development and Investment Corporation Limited at No.60, Romain Rolland Street, Puducherry 605001.
• The office phone number is 0413-2334361.
• The email address for contact is info@pipdic.com.
• The General Manager (Administration) can be contacted via mobile at 9894653835.