Scheme of Assistance to Good Borrowers: B Category

What is the Scheme of Assistance to Good Borrowers, B Category?

Scheme of Assistance to Good Borrowers is a facility of the Pondicherry Industrial Promotion Development and Investment Corporation Limited (PIPDIC), the Government of Puducherry undertaking under the Department of Industries and Commerce. PIPDIC lists it among its special schemes, and the scheme's purpose is to support and reward existing borrowers who have maintained a satisfactory repayment track record.

PIPDIC splits good borrowers into two categories:

• A category, existing units operating for three years or more, with a regular repayment record and no reschedulement of the loan.
• B category: units with not more than one reschedulement, and regular payments after the restructuring.

This guide covers B category. The distinction matters to a borrower's pocket: A category attracts an interest concession of 1 per cent below the normal rate, while B category attracts 0.5 per cent.

The logic of the scheme is straightforward. A unit that ran into difficulty once, had its loan rescheduled, and has paid regularly since is a proven credit even though it is not spotless. PIPDIC rewards that recovery with cheaper money and a lighter appraisal, rather than treating the old reschedulement as a permanent mark.

What does a B category good borrower get?

Loan amount: minimum Rs 5 lakh, maximum Rs 150 lakh.

Purpose: acquisition of fixed assets, for setting up new capacity, expansion, modernisation or diversification.

Interest concession: 0.5 per cent less than the normal rate for B category. Applied to PIPDIC's published structure, that means roughly:

Repayment: 3 to 5 years excluding the moratorium.

PIPDIC separately offers a concessional rate of 0.5 per cent to units promoted by women, Scheduled Caste, Scheduled Tribe or differently abled persons. Check with the Corporation whether the two concessions stack in your case; PIPDIC's published notes do not state that they do.

Who is eligible for B category assistance?

You can apply if:

• You are an existing MSI or SSI unit, or a transport loanee, of PIPDIC.
• Your loan account has had not more than one reschedulement, and you have made regular payments after the restructuring. That is the definition of B category.
• You are borrowing for fixed assets; new capacity, expansion, modernisation or diversification.
• Your requirement is between Rs 5 lakh and Rs 150 lakh.
• You can offer collateral security meeting PIPDIC's valuation norms.

You cannot apply if:

• You are a new borrower with no track record at PIPDIC. The scheme is a reward for a repayment history, so a first-time applicant is not eligible and should apply under the relevant general or specific scheme instead.
• Your account has had more than one reschedulement, or you have not paid regularly after the reschedulement. That puts you outside both categories.
• You have a live default or a non-performing account.
• Your requirement is below Rs 5 lakh or above Rs 150 lakh.
• You want working capital. Short-term needs are covered by PIPDIC's separate short-term financial assistance to good borrowers, which runs from Rs 5 lakh to Rs 50 lakh with repayment of 12 months up to Rs 10 lakh, 18 months for Rs 10 to 25 lakh, and 24 months for Rs 25 to 50 lakh, against collateral of 150 per cent of the term loan value.

If your repayment record is spotless with no reschedulement at all and the unit has been running three years or more, you should apply under A category instead and take the larger 1 per cent concession.

What documents are required?

How to apply for B category good borrower assistance

1. Confirm your category with PIPDIC first. The whole benefit turns on whether your account is classified A or B, and PIPDIC's records, not your own reading of them; decide it. Ask the Corporation to confirm your standing before you build a proposal around the concession.
2. Prepare the fixed asset proposal: what you are buying, why, the cost break-up, and the quotations with comparatives.
3. Register or log in at pipdic.in and open the appropriate loan application form under Loan Applications, Upto 25 Lakhs or Above 25 Lakhs.
4. Attach the repayment record and audited accounts along with the standard identity, registration and collateral documents.
5. Pay the application fee online — Rs 100 for a loan up to Rs 25 lakh, Rs 200 above that.
6. Go through appraisal. A good borrower's file is normally lighter than a fresh proposal, but PIPDIC still verifies the quotations and values the collateral through a Chartered Engineer from its approved panel.
7. Complete documentation after sanction and take disbursement.

PIPDIC also operates a Merit Loan Scheme for good borrowers, under which units with a continuously standard asset classification for three years, and borrowers who have settled a previous loan account, can get a further loan up to the amount already repaid, at 1 per cent below the normal rate, with no application fee, no investigation fee and no detailed appraisal. A B category borrower who has since become standard for three years should ask about this route, and the portal carries a Merit Loan Letter option for it.

How do I check my application status?

1. Log in at pipdic.in and open the application status view.
2. Quote your existing loan account number as well as the new application number, a good borrower application is processed against the old account.
3. Contact The Managing Director, PIPDIC Ltd., No. 60, Romain Rolland Street, Puducherry 605001: 0413-2334361, info@pipdic.com.
4. Use the Enquiry or Grievance form on pipdic.in.

Common reasons applications are rejected

• Category misjudged. An applicant who believes they are B category while PIPDIC's records show more than one reschedulement will not get the concession.
• Payments not regular after the reschedulement, which is the specific condition for B category.
• Amount outside the Rs 5 lakh to Rs 150 lakh band.
• Working capital sought under a fixed-asset scheme.
• Collateral shortfall or title defects over the 30-year encumbrance period.
• Unit not running. The scheme supports an existing unit acquiring assets, not a dormant one.

Key dates

There is no application window. PIPDIC accepts applications through the year. The loan band, the concession, the repayment period and the interest structure quoted here are PIPDIC's published norms; the rate that applies is the one in force on the date of sanction.

Help and contact

• The Managing Director, PIPDIC Ltd., No. 60, Romain Rolland Street, Puducherry 605001 to 0413-2334361, info@pipdic.com
• General Manager (Administration), PIPDIC Ltd.: mobile 9894653835
• Online applications and Merit Loan Letter; pipdic.in
• Scheme list, pipdic.in/pipdic_schemes
• Financial norms, pipdic.in/financial_norms