Scheme for Purchase of Mobile Sales Van

What is the Scheme for Purchase of Mobile Sales Van?

The Scheme for Purchase of Mobile Sales Van is a marketing-support lending scheme of the Pondicherry Industrial Promotion Development and Investment Corporation Limited (PIPDIC) under the Department of Industries and Commerce, Government of Puducherry. According to the PIPDIC schemes page, the scheme finances Khadi and Village Industries institutions to buy new mobile sales vans for stocking and displaying KVI products for sale, and for transporting the raw materials needed to produce them.

PIPDIC. The Pondicherry Industrial Promotion Development and Investment Corporation Limited, was set up by the Government of Puducherry in 1974 with an authorised share capital of Rs 45 crore. PIPDIC works under the Department of Industries and Commerce and does two things: it develops industrial estates, growth centres and IT parks in the Union Territory, and it lends to entrepreneurs through a published set of loan schemes.

The scheme belongs to PIPDIC's marketing activities group, which also contains assistance to marketing organisations setting up or renovating sales outlets. The logic behind a mobile van is simple: khadi, coir, handloom and village industry products in Puducherry are made in scattered small units, and a fixed showroom in one town reaches only the customers who walk into it. A van takes the same stock to markets, fairs, temple festivals and neighbouring towns, and brings raw material back on the return leg.

Headline terms

• Loan limit of Rs 3,00,000 per vehicle.
• Maximum of six vehicles under the scheme.
• Purpose is the purchase of new mobile sales vans.
• Use covers both display and sale of KVI products and transport of raw materials.

Who is eligible for the mobile sales van loan?

You can apply if:

• You are a Khadi and Village Industries institution. PIPDIC's scheme note records that proposals under this head come with KVIC support.
• You are an individual, a partnership concern, a private limited company or a public limited company experienced in the marketing of Village and Small Industries products.
• The van is new, and the vehicle will be used for stocking, displaying and selling KVI products, or for carrying raw material for producing them.
• You can offer immovable property as collateral in addition to hypothecation of the vehicles.

You cannot apply if:

• You have no experience in marketing Village and Small Industries products. Experience is written into the eligibility, not implied.
• You want a personal vehicle. Individuals cannot use this scheme to fund a car or a van for private use; PIPDIC runs separate schemes for four-wheeler purchase by qualified professionals and by government employees.
• The van is second-hand. Only new vehicles are covered.
• You are asking for more than six vehicles, or for more than Rs 3,00,000 per vehicle.
• You are a defaulter to PIPDIC, a bank or any other financial institution.
• The institution operates outside the Union Territory of Puducherry.

How much does the scheme lend?

Because Rs 3,00,000 per van is a ceiling rather than a fixed grant, an institution buying a larger or better-fitted van has to bring the balance from its own funds.

What are the interest rate and financial norms?

PIPDIC publishes a single rate card that applies across its lending schemes:

Units promoted by women, Scheduled Caste, Scheduled Tribe or differently abled entrepreneurs get a concession of 0.5% below the normal rate.

The investigation fee is 0.50% of the term loan applied for, plus service tax, where the loan is up to Rs 25,00,000, and 0.75% plus service tax above that. Scheduled Caste and Scheduled Tribe entrepreneurs pay half the investigation fee.

The debt-equity ratio expected is 3:1 for a loan up to Rs 25,00,000, which covers this scheme's normal range.

Collateral security is required in the form of immovable property, over and above the mortgage or hypothecation of the assets being financed. Property inside the Union Territory of Puducherry must be worth at least the sanctioned loan amount. Property outside Puducherry must be worth at least 150% of the loan if it is land with a building, and at least 200% if it is bare land. For units promoted by women, SC, ST or differently abled persons the requirement is reduced to 50% of the loan amount. Valuation is done by chartered engineers and valuers on PIPDIC's approved panel, not by a valuer of the borrower's choosing.

What documents are required?

How to apply for the Scheme for Purchase of Mobile Sales Van online

PIPDIC accepts applications only through its own portal at pipdic.in. There is no paper counter for fresh loan applications, and no agent is authorised to file on your behalf.

1. Open pipdic.in and click Login, then choose the New customer link. Enter a username, an email ID, a password and the captcha, and click Register.
2. Log in with the registered email ID. PIPDIC sends a one-time password to that email address; enter the OTP and click Login to reach the customer dashboard.
3. Open Edit Profile from the top right corner of the dashboard, complete every required field about yourself and the enterprise, and click Submit. An incomplete profile blocks the application form.
4. Click the Applications tab. A pop-up shows the checklist of general terms and conditions, the interest rate structure, the investigation fee and the collateral security norms. Read it, gather the listed papers, and click I Agree.
5. Choose the correct application form. PIPDIC publishes four forms, Up to 25 Lakhs, Above 25 Lakhs, Transport, and the Merit Loan Letter, and fill the multi-step form, completing every mandatory field.
6. Read the declaration, which covers the truth of the information, the absence of any unauthorised borrowing arrangement and consent to verification. Tick I agree to terms and click Submit.
7. Enter the bio-data of the promoter, partner or director on the screen that follows, and upload each KYC and supporting document using the Choose File button beside the field.
8. Pay the application fee: Rs 100 for a loan up to Rs 25,00,000 and Rs 200 for a loan above Rs 25,00,000. Online payment redirects you to a summary page before the debit.
9. Save or print the fee receipt generated after payment. Keep it, because it carries the reference PIPDIC uses when you call about the file.

Note that PIPDIC publishes a separate Transport application form with an application fee of Rs 100. Where the sanction is only for vehicles, that is usually the correct form; check the pop-up checklist on the Applications tab before choosing.

How to check the status of a PIPDIC application

1. Log in to pipdic.in with the registered email ID and the OTP sent to it.
2. Click View My application on the dashboard.
3. Select the relevant loan application from the drop-down menu.

A freshly filed application shows as UNDER REVIEW. The status moves on as PIPDIC completes the technical appraisal, the site inspection and the valuation of the property offered as collateral. If the status has not changed for several weeks, call the corporation on 0413-2334361 quoting the application number on your fee receipt rather than filing a second application, since a duplicate file attracts a second application fee.

Why PIPDIC applications get rejected or delayed

• Profile not completed on the portal, so the application form never opens.

• Collateral property falls short of the prescribed value once PIPDIC's panel valuer files the report. A borrower who relies on a private valuation from outside the panel is the most common casualty here.

• Title defects: property that is jointly held without every co-owner joining the mortgage, or property with an unreleased earlier charge.

• Default with another lender. PIPDIC checks credit records, and an outstanding default against the promoter or a group concern stops the file.

• Missing or unreadable uploads of KYC and financial documents.

• Application fee unpaid. The file is not taken into appraisal until the Rs 100 or Rs 200 fee is received and the receipt generated.

• Activity outside Puducherry. PIPDIC finances units located in the Union Territory of Puducherry, covering the Puducherry, Karaikal, Mahe and Yanam regions.

• Marketing experience not evidenced. A new institution with no trading record in Village and Small Industries products fails the eligibility test as written.

• Vehicle quotation for a used van, which the scheme does not cover.

• Number of vans not justified by the sales volume shown in the accounts.

Key dates

The scheme is open all year with no notified window and no closing date. In practice, institutions time van purchases ahead of the festival and exhibition season, when a mobile outlet earns most, and it is worth filing several weeks early because PIPDIC's valuation and legal scrutiny of the collateral property runs on its own timetable regardless of the vehicle delivery date.

Whom to contact for help or a grievance

• Managing Director, PIPDIC, No. 60, Romain Rolland Street, Puducherry 605001 to phone 0413-2334361, email info@pipdic.com.
• General Manager (Administration), mobile 9894653835.
• Online grievance form at pipdic.in/grievance_form, which is the route that creates a written record.
• PIPDIC also holds virtual open house hearings for public grievances, notified on the portal.
• Department of Industries and Commerce, Government of Puducherry, is the administrative department above PIPDIC if a grievance is not settled by the corporation.

Filing an application on pipdic.in costs only the notified application fee. No official or intermediary is authorised to collect anything else for processing a file, and PIPDIC never asks for the OTP sent to your registered email.