Short Term Financial Assistance to Good Borrowers

What is Short Term Financial Assistance to Good Borrowers?

Short Term Financial Assistance to Good Borrowers is a special scheme of the Pondicherry Industrial Promotion Development and Investment Corporation Limited (PIPDIC), which functions under the Department of Industries and Commerce, Government of Puducherry. According to the PIPDIC schemes page, the facility is designed for a manufacturer who has a good repayment record and a sudden, defined need for cash. An order to execute, a seasonal spike in fund requirement, or a firm export order that has to be financed before payment arrives.

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 Short Term Financial Assistance scheme sits in PIPDIC's Special Schemes group alongside Assistance to Good Borrowers and the Merit Loan Scheme. The common thread across that group is that the borrower has already proved itself, either to PIPDIC or to another lender, and is rewarded with quicker terms rather than a subsidy.

What makes this facility different from an ordinary term loan

• The money is for short term working needs, not for buying land, building or machinery.
• The tenure is 12 to 24 months, against the 5 to 8 years typical of a PIPDIC term loan.
• The whole sanctioned amount is released at once after documentation.
• The collateral requirement is 150% of the term loan value, higher than the 100% norm PIPDIC applies to property inside Puducherry for its regular loans.

Who is eligible for Short Term Financial Assistance to Good Borrowers?

You can apply if your enterprise falls in any one of these four groups:

• An existing medium scale or small scale industrial unit classified as 'A' or 'B' category by PIPDIC. Category A means the unit has been operating for three years or more, has repaid regularly, and has never had its loan rescheduled. Category B means the account has been rescheduled not more than once, payments after the reschedulement have been regular, and the assets are unencumbered.
• An existing good borrower who has repaid 30% of the principal amount of an earlier PIPDIC loan.
• A unit assisted by another bank or financial institution, where the quantum of loan is decided on the merits of the individual case and the security offered.
• A group concern of an existing PIPDIC client, with an excellent track record of four years and operating on profitable lines.

You cannot apply if:

• You are setting up a new unit. There is no track record to assess, and a new promoter should look instead at the Single Window Scheme or the Composite Loan Scheme for cottage and village industries.
• Your unit is a defaulter with PIPDIC, a bank or any other financial institution.
• Your account has been rescheduled more than once, which puts you outside both A and B categories.
• The purpose is acquisition of fixed assets. Land, building and machinery are financed under PIPDIC's regular term loan schemes, not under this short term facility.
• You cannot offer immovable property worth 150% of the loan for mortgage.
• The unit is located outside the Union Territory of Puducherry.

An individual who wants a personal loan cannot use this scheme. Short Term Financial Assistance is an industrial credit product for a registered enterprise.

How much does the scheme lend and on what terms?

PIPDIC states plainly that where the applicant is a non-assisted unit, the quantum of loan is decided on the merits of the individual case and on the security offered, so a first-time borrower from another bank should not assume the full Rs 50,00,000 ceiling.

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 and 2:1 above that, in line with PIPDIC's general financial norms.

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 Short Term Financial Assistance to Good Borrowers 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.

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.

• The order is not firm. Because this scheme funds a specific order, a letter of intent that can be withdrawn is weaker evidence than a confirmed purchase order or export order.

Key dates and how the timeline runs

Short Term Financial Assistance to Good Borrowers has no application window and no closing date. PIPDIC keeps the online form open through the year, which suits a facility meant to answer a sudden order. The practical timeline is set by the panel valuer's report and the legal scrutiny of the property offered, so a borrower who already has clean title deeds and a recent encumbrance certificate in hand moves considerably faster than one who starts collecting them after filing.

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.