The Tamil Nadu government launched the Micro Small Enterprise Funding Scheme with the goal of promoting the expansion and competitiveness of micro and small businesses (MSE). This scheme has been assigned to the Tamil Nadu Industrial Investment Corporation Limited (TIIC) for supervision and implementation. Financial support is also given by the Tamil Nadu government as part of this MSE funding program. Additionally, to the New or Renowned Units in Micro and Small Businesses with a Rs. 50.00 lakh project budget overall.

What are the Objectives of the Micro Small Enterprise Funding Scheme, Tamilnadu?

The primary goal is to provide more financial support. To micro and small business units, both new and old, with a total project expenditure of Rs. 50 lakh. The following are additional goals:

• Upgrading infrastructure through the provision of financial aid in MSE industrial zones, whether they are new or already established.
• For the development of fixed assets in small enterprises and MSEs. Thanks to technological advancements, micro and small business growth is being enhanced. In addition, the quality, market and resource accessibility, and skill sets. furthermore to raise the SMEs’ potential. through the creation of consortia, associations that are upgraded, self-help groups, etc. Building of training facilities, research facilities, raw material depots, wastewater disposal facilities, supplementary manufacturing techniques, etc.

What are the eligibility requirements for the Micro Small Enterprise Funding Scheme in Tamil Nadu?

The following criteria must be met in order to be eligible for funding under the Micro / Small Businesses Funding Scheme: new small and micro businesses, no matter where they are located, for the production, warehousing, or processing of goods. Additionally, for businesses in the service industry like fast food restaurants and hospitals. aside from newly established micro and small-scale businesses and small road transport operators (SRTOs). even the MSE (micro and small-scale enterprise) units now operating in Tamil Nadu. Additionally, growth, modernization, technological advancement, diversification, and service businesses are crucial for all partnerships, limited liability companies (LLPs), and real estate.

Under the Micro and Small Enterprises Funding Scheme, no project’s cost can ever go above Rs. 50 lakh. Furthermore, this sum is exclusive to the new units. The project never costs more than Rs. 50 lakhs for MSE units that are currently in operation. The Micro and Small Businesses Funding Scheme bases the Loan Allotment on the User Type:

First, a term loan of 80% is approved for new MSE units, contingent on project costs. That sets a cap of no more than Rs. 40 lakhs.

Secondly, a term loan equal to 75% of the project cost for already-existing MSE units. Up to a maximum of Rs. 37.50 lakhs, that governs.

Twenty percent of the project cost is the minimum promoter contribution to the Micro and Small Enterprises Funding Scheme. However, specifically:

As a result, the promoter contributes 20% of the project cost to each of the new units.

Additionally, 25% of the project cost is contributed by the promoter to each of the current units.

What are the Documents Needed Micro Small Enterprise Funding Scheme, Tamilnadu?

• KYC records
• Identity proof: voter ID, passport, PAN card, and Aadhar card
• Verification of the home’s address
• Project report and projected balance sheet
• Proof of business address
• Proof of business registration: Partner title; certified copies of the AOA and MOA; bank statement from six months prior (if the unit is an existing one)

conclusion

A business plan, sometimes referred to as a project report, is one of the most important documents on the list above when requesting a bank loan. This document is used by the bank to evaluate a project’s overall viability, risks, financial stability, and potential. The likelihood of a loan being approved rises with a well-written and compelling project report. You can create an engaging project report using Finline in less than ten minutes. In your language as well. Additionally, our project report is accepted by all Indian banks, both public and private. To build your project report, click.