PIPDIC Financial Assistance for Existing Assets — Loan from ₹5L — Frequently Asked Questions

It is a term loan facility from PIPDIC, run with the Department of Industries & Commerce, Puducherry, that lets an established unit buy assets which already exist — land, buildings and machinery — as long as they meet the prescribed residual life criteria. It suits businesses that want to expand or modernise without constructing everything from the ground up.

The loan starts at ₹5,00,000. No maximum figure is published in the scheme itself; the upper limit is governed by PIPDIC's general terms and conditions for term loans, so the amount is decided case by case based on the proposal.

Interest is charged at 1% above the prevailing rate, so it shifts with the market rather than being fixed. The loan is repaid over 5 years, or 60 months, and that period includes a moratorium of 1 year (12 months) during which no instalments are due.

The unit must have been in existence for a minimum of 2 years and must have a good track record. It also has to be an industrial or commercial unit in Puducherry, since the scheme is administered there by PIPDIC. The asset being purchased needs to satisfy the prescribed residual life norms.

No. This is a rolling scheme that stays open throughout the year, so there is no last date to beat. You can apply whenever your documents are ready.

No. This is a debt scheme, so the support comes as a term loan that you repay with interest. PIPDIC does not take shares or dilute the promoter's holding.

Neither is listed among the scheme's stated conditions. The eligibility criteria set out are a minimum of two years of existence and a good track record, along with the residual life requirement for the asset being purchased.

For a loan of up to ₹25,00,000 the fee is ₹100, and for a loan above ₹25,00,000 it is ₹200. It is paid online through the portal, and once the transaction is complete a PDF receipt is generated for you to save.

Applications are made online through PIPDIC's portal at https://pipdic.in/pipdic_schemes. You register as a new customer with a username, email ID and password, verify your email with an OTP, and complete your profile. From the Applications tab you accept the general terms and conditions, fill the multi-step loan form, submit the declaration, and then enter the bio-data of the promoter, partner or director. KYC and supporting documents are uploaded against each field, and the application fee is paid at the end. A checklist pop-up shown before you begin lists exactly what to keep ready.

After submission the file is screened, then reviewed by PIPDIC's internal committee, which verifies the two-year existence rule and studies the unit's track record. The proposed asset purchase is assessed for financial viability, and shortlisted cases move into the full appraisal used for standard term loans, which may involve site visits and additional due diligence before approval and disbursement.

PIPDIC Financial Assistance for Existing Assets — Loan from ₹5L is offered by Pondicherry Industrial Promotion Development and Investment Corporation (PIPDIC), a government body. It is provided as non-dilutive funding.