Scheme for Cottage and Village Industries (Composite Loan Scheme)
Scheme for Cottage and Village Industries is a Government of Puducherry scheme implemented through the Puducherry Industrial Promotion and Development Corporation (PIPDIC) under the Department of Industries and Commerce. The scheme provides composite financial assistance (term loan + working capital) to artisans, village-industry units, and micro-enterprises.
The main objective is to strengthen traditional cottage industries and small-scale production activities by enabling access to formal finance. For you as an MSME or artisan, this scheme is especially useful because it offers single-window financing for both equipment and working capital, reducing the need for multiple loans.
Key Features
- Composite loan structure: The scheme provides both fixed asset financing (machinery, tools) and working capital under a single loan, making it easier for you to manage business finances.
- Support for traditional industries: It promotes sectors like handloom, handicrafts, food processing, and other artisan-based industries.
- MSME-focused approach: The scheme is specifically designed for micro and tiny enterprises, making it accessible for small entrepreneurs.
- Encouragement of local skills: It supports traditional skills and helps preserve local crafts while generating income.
- Flexible financing: Loan amount and structure are based on project viability and business needs.
Financial Assistance
Eligibility Criteria
- Applicant must be a resident of Puducherry
- Can be an individual, SHG, cooperative, or micro-enterprise
- Must be engaged in or planning to start a cottage/village industry activity
- Must submit a viable project proposal
- Must comply with PIPDIC and bank norms
Eligible activities include:
- Handloom and handicrafts
- Small-scale food processing
- Artisan-based trades
- Micro manufacturing and services
Non-eligibility conditions:
- Large-scale industrial projects
- Activities outside cottage/village industry scope
- Applicants with poor repayment history
Documents Required
- Aadhaar Card
- Residence Proof (Puducherry)
- PAN Card
- Bank Account Details
- Project Report
- MSME/Udyam Registration (if applicable)
- Trade/skill certificates (if applicable)
- Land/lease documents (if applicable)
- Security documents (if required)
Application Process
Option 1: Apply with Bullit, Recommended
Start instantly with our guided application support, where our team verifies eligibility, prepares documentation, and coordinates with the Industries Department on your behalf. Using our business loans and compliance calendar, you can track progress while focusing on project execution, we manage the application end-to-end.
Option 2: Apply Online / Offline (Government Process)
- Visit District Industries Centre (DIC) or PIPDIC office
- Collect/download application form
- Fill in project and business details
- Attach required documents
- Submit application
- Undergo technical and financial appraisal
- Loan is sanctioned
- Funds are disbursed in stages
Frequently asked questions
What is the objective of this scheme?
The scheme aims to provide financial support to cottage and village industries to promote self-employment and traditional industries.
Who can apply for this scheme?
Individuals, SHGs, cooperatives, and micro-enterprises in Puducherry engaged in cottage industries can apply.
What is the maximum loan amount?
The scheme generally supports projects up to about ₹10 lakh.
What is meant by composite loan?
It means a single loan covering both fixed assets and working capital requirements.
Is collateral required?
Collateral requirements depend on loan size and PIPDIC norms.
Can new entrepreneurs apply?
Yes, both new and existing micro-entrepreneurs can apply.