PIPDIC SSI/MSI Sector Scheme — Term Loan Up to ₹10 Crore — Frequently Asked Questions
Answers to the questions founders most often ask about PIPDIC SSI/MSI Sector Scheme — Term Loan Up to ₹10 Crore — who qualifies, the funding amount, required documents and how the application works.
Frequently asked questions
How much funding can I get under the PIPDIC SSI / MSI Sector Scheme?
The scheme extends a term loan of up to ₹10 crore for a single project. The overall project you are financing must also stay within a total cost of ₹20 crore.
Is this money a grant, or do I have to repay it?
It is repayable debt. The amount comes to you as a term loan that has to be repaid over a maximum of 8 years, with a moratorium of up to 2 years before instalments start. Since it is a loan rather than an equity investment, PIPDIC does not take any stake in your business.
What can the loan be used for?
The proceeds are earmarked for fixed assets. That covers buying land, putting up buildings, and acquiring plant and machinery, equipment, electrical systems and other fixed assets your unit needs to run.
Who is eligible to apply?
Units in the Small Scale or Medium Scale segment can apply, whether they are starting a new project or expanding, modernising or diversifying an existing one. Proprietary Concerns, Partnership Firms, Private Limited Companies and Public Limited Companies are all accepted entity types.
Is there an application deadline?
No. Applications are accepted on a rolling basis, so there is no last date to work towards. You can apply whenever your project is ready.
What Debt Equity Ratio does the scheme require?
A ratio of 3:1 applies to loans of up to ₹25 lakh, while loans above ₹25 lakh need a ratio of 2:1. This is one of the things checked during the appraisal of your project's financial viability.
What security or collateral do I need to provide?
Collateral in the form of immovable property is required, in line with the corporation's lending policy. The property is valued by Chartered Engineers or valuers drawn from PIPDIC's approved panel. If the property you offer lies outside Puducherry, higher coverage norms apply to it.
What is the application fee?
The fee is ₹100 if you are applying for a loan of up to ₹25 lakh, and ₹200 if the amount requested is above ₹25 lakh.
What documents will I need?
During the application you will be asked for the biodata of the promoter, partner or director, along with KYC and supporting documents such as a PAN card, voter identity, ration card and Aadhaar card. Before you start filling the form, a pop-up shows the general terms and conditions, interest rates, investigation fees and collateral norms — it is worth reading that checklist first and keeping the listed papers ready.
How do I apply, and can I track my application?
Applications are made online through PIPDIC at https://pipdic.in/pipdic_schemes. You register as a new customer, verify your email with an OTP, complete your profile, then open the loan application form matching your amount — either the one for up to ₹25 lakh or the one for above ₹25 lakh. After the fee is paid and the form is submitted, you can follow progress from 'View My application' on your dashboard, where the status appears as 'UNDER REVIEW' while appraisal is under way.
Is DPIIT recognition required for PIPDIC SSI/MSI Sector Scheme — Term Loan Up to ₹10 Crore?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for PIPDIC SSI/MSI Sector Scheme — Term Loan Up to ₹10 Crore, though having it can strengthen your application and unlock other benefits.
Who offers PIPDIC SSI/MSI Sector Scheme — Term Loan Up to ₹10 Crore?
PIPDIC SSI/MSI Sector Scheme — Term Loan Up to ₹10 Crore is offered by Pondicherry Industrial Promotion Development and Investment Corporation (PIPDIC), a government body. It is provided as non-dilutive funding.
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