29-11-2012, 02:36 PM
THE TAMILNADU INDUSTRIAL INVESTMENT CORPORATION LIMITED
THE TAMILNADU.docx (Size: 22.93 KB / Downloads: 52)
Introduction:
The Tamilnadu Industrial Investment Corporation Limited (TIIC) is
a Government Company incorporated under The Companies Act. TIIC
is considered as one of the State Financial Corporations for extending
financial assistance towards creation of fixed assets for starting new
industrial units as well as for expansion, modernization and
diversification of existing units as well as working capital term loan
assistance. Lending to service sector projects like hospitals, hotels,
convention centres, commercial complex etc., are also considered.
Quantum of Loan Assistance:
TIIC provides Term Loan assistance normally upto a maximum
of Rs.800 lakhs to Proprietary and Partnership concern. In respect
of Limited Companies and Co-operative Societies normally a
maximum term loan assistance of Rs.2000 lakhs can be considered.
However, higher loan assistance may also be considered for bigger
projects on a case to case basis.
TIIC has 6 Regional Offices, 25 regular Branch Offices, 1 Special
recovery branch office and 5 Field Offices spread all over Tamilnadu.
The Board of TIIC has delegated appropriate powers for sanction
of loans to the Branch Manager, Branch Sanction Committee and
Regional Loan Sanction Committee (RLSC). The Executive
Committee consisting of Directors of the Board consider sanction of
loans beyond the power of RLSC (i.e) beyond Rs.100/150 lakhs upto
Rs.300 lakhs. The Board of TIIC consider sanction of loans above
Rs.300 lakhs.
How to apply:
For getting financial assistance from TIIC, one has to apply in
the prescribed application and the applications are available in all
the TIIC Offices. There are separate applications for certain
schemes. Application for financial assistance to industrial units
can also be downloaded from TIIC’s website
Appraisal of Project by TIIC:
TIIC appraises the project for its technical feasibility, financial
and economic viability while sanctioning loan. The applicant should
satisfy TIIC regarding the scope for marketing and furnish the
details of the cost of production, cash flow etc., to assess the pay
back period and for assessing the various financial ratios / norms.
Rate of Interest:
The rate of interest for the term loan for the current year is in
the range of 14.50 % p.a. to 16.00 % p.a based on the quantum of
loan and nature of industries. The Corporation will modify the
interest rate for all loans every year based on its cost of funds.