Micro, Small and Medium Enterprises (MSMEs) are an important part of the Indian economy, contributing significantly to employment generation and GDP growth. However, lack of access to finance is a major challenge faced by MSMEs in the country. To address this issue, various state and central governments have launched loan schemes for MSMEs. In this blog, we will look at some of the loan schemes available for MSMEs in Tamil Nadu.
- Tamil Nadu Startup Seed Grant Fund
The Tamil Nadu Startup Seed Grant Fund (TNSSGF) is a scheme launched by the Tamil Nadu government to provide financial assistance to startups. Under this scheme, startups in Tamil Nadu are eligible for seed grants of up to Rs. 25 lakhs. The grant amount is given in three installments and is linked to milestones achieved by the startup. The scheme is implemented by the Tamil Nadu Industrial Investment Corporation (TIIC).
| Scheme name | Gender | Qualification | Age group | Social category | Industry profile | Rural/Urban | State govt/Central Govt |
|---|---|---|---|---|---|---|---|
| Tamil Nadu Startup Seed Grant Fund | Both | Preferably Graduate | 18-55 | All | Startups | Both | State govt |
- Tamil Nadu MSME Revival and Rehabilitation Package
The Tamil Nadu MSME Revival and Rehabilitation Package is a scheme launched by the Tamil Nadu government to help revive and rehabilitate sick MSME units in the state. Under this scheme, eligible sick MSME units can avail a one-time settlement of dues, interest, and penalty, subject to certain conditions. The scheme is implemented by the Tamil Nadu Industrial Investment Corporation (TIIC).
| Scheme name | Gender | Qualification | Age group | Social category | Industry profile | Rural/Urban | State govt/Central Govt |
|---|---|---|---|---|---|---|---|
| Tamil Nadu MSME Revival and Rehabilitation Package | Both | Not applicable | 18 + | All | Manufacturing, service, and agriculture | Both | State govt |
- Tamil Nadu State Government Credit Guarantee Scheme
The Tamil Nadu State Government Credit Guarantee Scheme is a scheme launched by the Tamil Nadu government to provide credit guarantee to MSMEs for loans taken from banks and financial institutions. Under this scheme, the government provides a credit guarantee cover of up to 75% of the loan amount, subject to a maximum of Rs. 62.50 lakhs. The scheme is implemented by the Tamil Nadu Industrial Investment Corporation (TIIC).
| Scheme name | Gender | Qualification | Age group | Social category | Industry profile | Rural/Urban | State govt/Central Govt |
|---|---|---|---|---|---|---|---|
| Tamil Nadu State Government Credit Guarantee Scheme | Both | Graduate Equivalent or Graduate | 18-38 | All | Manufacturing, service, and agriculture | Both | State govt |
- Tamil Nadu Technology Development and Promotion Centre (TDTDC) Loans
The Tamil Nadu Technology Development and Promotion Centre (TDTDC) provides loans to MSMEs for technology upgradation and modernization. Under this scheme, loans of up to Rs. 1 crore are provided to eligible MSMEs at an interest rate of 12% per annum. The repayment period for this loan is up to 7 years, including a moratorium period of up to 2 years.
| Scheme name | Gender | Qualification | Age group | Social category | Industry profile | Rural/Urban | State govt/Central Govt |
|---|---|---|---|---|---|---|---|
| Tamil Nadu Technology Development and Promotion Centre (TDTDC) Loans | Not applicable | Not applicable | Not applicable | Not applicable | Manufacturing, service, and agriculture | Both | State govt |
- Tamil Nadu Industrial Investment Corporation (TIIC) Loans
The Tamil Nadu Industrial Investment Corporation (TIIC) provides loans to MSMEs for setting up new projects or expanding existing ones. Under this scheme, loans of up to Rs. 5 crores are provided to eligible MSMEs at an interest rate of 9.60% to 10.80% per annum. The repayment period for this loan is up to 10 years, including a moratorium period of up to 2 years.
| Scheme name | Gender | Qualification | Age group | Social category | Industry profile | Rural/Urban | State govt/Central Govt |
|---|---|---|---|---|---|---|---|
| Tamil Nadu Industrial Investment Corporation (TIIC) Loans | Not applicable | Not applicable | Not applicable | Not applicable | Manufacturing, service, and agriculture | Both | State govt |
- Tamil Nadu Government Subsidy Schemes
The Tamil Nadu government has launched various subsidy schemes for MSMEs to encourage their growth and development. Some of the popular subsidy schemes include:
- Credit Linked Capital Subsidy Scheme for Technology Upgradation (CLCSS)
- Capital Investment Subsidy Scheme (CISS)
- Entrepreneurship Development and Innovation Institute (EDII) Scheme
- New Entrepreneur cum Enterprise Development Scheme (NEEDS)
Under these schemes, eligible MSMEs can avail subsidies on various expenses like capital investment, technology upgradation, marketing expenses, training expenses, and more.
| Scheme name | Gender | Qualification | Age group | Social category | Industry profile | Rural/Urban | State govt/Central Govt |
|---|---|---|---|---|---|---|---|
| Tamil Nadu Government Subsidy Schemes | Both | Pertinent to fund amount | Not applicable | All | Manufacturing, service, and agriculture | Both | State govt |
- Tamil Nadu Women Entrepreneurs Development Corporation (TNWEDC) Loans
The Tamil Nadu Women Entrepreneurs Development Corporation (TNWEDC) provides loans to women entrepreneurs for setting up new projects or expanding existing ones. Under this scheme, loans of up to Rs. 50 lakhs are provided to eligible women entrepreneurs at an interest rate of 4% to 12% per annum. The repayment period for this loan is up to 7 years, including a moratorium period of up to 2 years.
| Scheme name | Gender | Qualification | Age group | Social category | Industry profile | Rural/Urban | State govt/Central Govt |
|---|---|---|---|---|---|---|---|
| TNWEDC Loans | Women only | Higher Secondary, Preferably Graduate | 18 above | All | Manufacturing, service, and agriculture | Both | State govt |
- Tamil Nadu Corporation for Development of Women Limited (TNCDW) Loans
The Tamil Nadu Corporation for Development of Women Limited (TNCDW) provides loans to women entrepreneurs for setting up new projects or expanding existing ones. Under this scheme, loans of up to Rs. 10 lakhs are provided to eligible women entrepreneurs at an interest rate of 4% to 8% per annum. The repayment period for this loan is up to 5 years, including a moratorium period of up to 6 months.
| Scheme name | Gender | Qualification | Age group | Social category | Industry profile | Rural/Urban | State govt/Central Govt |
|---|---|---|---|---|---|---|---|
| TNCDW Loans | Women only | Diploma/Graduate Equivalent | 18-45 | Not applicable | Manufacturing, service, and agriculture | Both | State govt |
- Tamil Nadu Adi Dravidar and Tribal Welfare Department (TADTW) Loans
The Tamil Nadu Adi Dravidar and Tribal Welfare Department (TADTW) provides loans to SC/ST entrepreneurs for setting up new projects or expanding existing ones. Under this scheme, loans of up to Rs. 5 lakhs are provided to eligible SC/ST entrepreneurs at an interest rate of 6% to 8% per annum. The repayment period for this loan is up to 5 years, including a moratorium period of up to 1 year.
| Scheme name | Gender | Qualification | Age group | Social category | Industry profile | Rural/Urban | State govt/Central Govt |
|---|---|---|---|---|---|---|---|
| TADTW Loans | Both | Higher Secondary | 18+ | SC/ST | Manufacturing, service, and agriculture | Both | State govt |
Conclusion
In addition to the various loan schemes available for MSMEs in Tamil Nadu, there are also schemes designed specifically for women entrepreneurs and SC/ST entrepreneurs. These schemes provide additional financial assistance and support to eligible entrepreneurs from these groups. MSMEs from these communities should explore these schemes and take advantage of the opportunities provided by the government to grow and expand their businesses.
