TN Credit Guarantee Scheme Launched, Offering Loans up to Rs 40 lakhs: The government of Tamil Nadu has launched a credit guarantee scheme to help small and medium-sized enterprises (SMEs) in the state. The scheme aims to provide financial assistance to the SMEs by offering loans up to Rs 40 lakhs. This article will provide you with all the details you need to know about the TN Credit Guarantee Scheme, including its eligibility criteria, benefits, and application process.
TN Credit Guarantee Scheme Eligibility Criteria
To avail of the TN Credit Guarantee Scheme, the SMEs should fulfill the following eligibility criteria:
- The SME should be registered as a sole proprietorship, partnership, private limited company, or limited liability partnership (LLP).
- The SME should be a resident of Tamil Nadu.
- The SME should have a valid GST registration.
- The SME should have a turnover of less than Rs 10 crores.
- The SME should not be a defaulter of any financial institution.
Benefits of TN Credit Guarantee Scheme
The TN Credit Guarantee Scheme offers several benefits to the SMEs, some of which are as follows:
- The SMEs can avail of loans up to Rs 40 lakhs.
- The scheme covers up to 80% of the loan amount as a guarantee cover.
- The interest rate on the loan is lower than the market rate.
- The SMEs can repay the loan in easy installments.
- The scheme also provides a moratorium period of up to 6 months.
Application Process
The application process for the TN Credit Guarantee Scheme is straightforward. The SMEs can follow the below steps to apply for the scheme:
- The SMEs should approach any of the empaneled banks under the scheme.
- The banks will provide the SMEs with the necessary details of the scheme and assist them in filling the application form.
- The SMEs should submit the application form along with the necessary documents to the bank.
- The bank will process the application and sanction the loan after verifying the SME’s eligibility.
Frequently Asked Questions (FAQs)
What is the maximum loan amount that can be availed under the TN Credit Guarantee Scheme?
The SMEs can avail of loans up to Rs 40 lakhs under the scheme.
What is the guarantee cover offered under the scheme?
The scheme covers up to 80% of the loan amount as a guarantee cover.
What is the eligibility criteria to avail of the scheme?
The SME should be registered as a sole proprietorship, partnership, private limited company, or LLP, should be a resident of Tamil Nadu, have a valid GST registration, have a turnover of less than Rs 10 crores, and should not be a defaulter of any financial institution.
What is the interest rate offered under the scheme?
The interest rate on the loan is lower than the market rate.
What is the application process for the scheme?
The SMEs can approach any of the empaneled banks under the scheme, and the bank will assist them in filling the application form. The SMEs should submit the application form along with the necessary documents to the bank.
Final Words
The TN Credit Guarantee Scheme is an excellent initiative by the Tamil Nadu government to support SMEs in the state. The scheme offers financial assistance to the SMEs by providing loans up to Rs 40 lakhs, which can help them grow their businesses. The scheme’s eligibility criteria are reasonable, and the application process is straightforward, making it easy for the SMEs to avail of the scheme’s benefits.
