Tamil Nadu - Chennai

TIIC offers small units loans to tide over energy crisis

CHENNAI: The Tamil Nadu Industrial Investment Corporation has started providing loans to micro, small and medium enterprises to help them tide over the energy crisis.

The loans will be provided in 15 days through the TIIC branch managers.

The managers have been empowered to sanction up to Rs. 30 lakh, and a higher sum will be sanctioned by the board.

The loans will carry an interest of 13.75 per cent a year, but the existing customers will pay 13 per cent.

The loans have to be repaid in five years, and one per cent rebate will be given for prompt repayment.

“The idea, based on business information, came from the branch managers. Since we do not have a credit squeeze, we can help the small and medium units and large industries immediately. However, the interest rate for large industries will be one per cent more. Even then, it will be less than the bank interest rate,” TIIC managing director C. Umashankar told The Hindu on Tuesday.

Mr. Umashankar said efficient officers had been charged with processing application for quick disposal and to make the process a pleasant experience for borrowers. From April to October, the TIIC has sanctioned Rs. 200 crore in loans.

It plans to disburse nearly Rs. 740 crore in the coming months. Proposals worth Rs. 60 crore, including Rs. 30 crore for windmill projects, will be cleared at the next board meeting scheduled for October 30.

“Currently, we are focusing on the Madurai region, and priority will be given to the existing and upcoming micro, small and medium enterprises and large units. BHEL is setting up an industrial park in Madurai and is interested in developing ancillary units. These units can avail themselves of finance from us, either for purchase of machinery and equipment or for industrial construction. We are going to hold talks with BHEL to sign an agreement to help ancillary units,” Mr. Umashankar said.

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