PIPDIC 'A' Category Good Borrower Loan — ₹5L to ₹1.5Cr for MSMEs — Frequently Asked Questions

The term loan starts at a minimum of ₹5 lakh and can go up to a maximum of ₹1.5 crore, depending on the proposal and PIPDIC's appraisal.

Borrowers who qualify as 'A' Category Good Borrowers receive a concession of 1% below PIPDIC's normal lending rate. The base rate itself is set by the Corporation, so the concession is applied on top of whatever rate applies at the time of sanction.

The scheme is for units PIPDIC has already assisted and classified as 'A' Category Good Borrowers. The unit must be a Medium Scale Industry or Small Scale Industry that has been in operation for more than 3 years, with regular repayments and no re-schedulement taken.

Yes, provided its fixed assets are free from encumbrance. An existing transport loanee who settled that loan promptly is also treated as an eligible applicant under this scheme.

For a new unit, the funds go towards acquiring fixed assets. For an existing unit, they can cover an expansion project, modernisation work, the purchase of balancing equipment, or the replacement of machinery and equipment.

The repayment period ranges from 3 to 5 years, excluding any moratorium period granted.

Yes. Collateral in the form of immovable property situated in the Union Territory of Puducherry is required, valued at not less than the term loan sanctioned. If the property is located outside Puducherry, a different set of valuation criteria applies.

The fee is ₹100 for loans up to ₹25 lakh and ₹200 for loans above ₹25 lakh. If you pay online, you are taken to a payment summary page, and a receipt is generated on the PIPDIC website afterwards that you can print or save as a PDF.

No. This is a debt scheme — you receive a term loan and repay it over the agreed tenure. There is no equity stake or dilution involved.

No. Applications are accepted on a rolling basis throughout the year, so you can apply whenever your expansion, modernisation or equipment replacement plan is ready.

Apply online through the PIPDIC website. Register as a new customer, verify your email with an OTP and log in, complete your profile, then open the "Applications" tab. You will need to review and accept the checklist of terms, interest rates, fees and collateral norms, fill in the multi-step form, submit the declaration, add promoter or director biodata, upload KYC and supporting documents, and pay the application fee. The application portal is at pipdic.in/pipdic_schemes.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for PIPDIC 'A' Category Good Borrower Loan — ₹5L to ₹1.5Cr for MSMEs, though having it can strengthen your application and unlock other benefits.

PIPDIC 'A' Category Good Borrower Loan — ₹5L to ₹1.5Cr for MSMEs is offered by Pondicherry Industrial Promotion Development and Investment Corporation (PIPDIC), a government body. It is provided as non-dilutive funding.