Flexi Working capital Scheme
The Flexi Working Capital Term Loan Scheme is provided by TIIC, a financial institution promoted by the Government of Tamil Nadu to support industrial development. The scheme was launched to assist manufacturing & processing units (including rice‐mill units) in meeting their working capital or additional working capital needs through a structured term‐loan facility. Your business, as an MSME in Tamil Nadu, can benefit by accessing this term loan alternative to bank working capital, improving your cash flow, meeting inventory, creditors/debtors or expansion requirements.
Key Features
- Loan facility for working capital needs: The scheme is specifically designed to help units meet their working capital needs such as inventory, receivables, or creditor payments or additional working capital when existing units expand. This is distinct from term‐loans for fixed assets.
- Eligibility of at least two years, positive profit & net worth: To avail, your unit should have been operational for at least two financial years, with positive cash profit in those years and a positive net worth. If your unit already has bank finance, it must be in standard asset category for last two years. These criteria ensure financial stability.
- Maximum loan up to ₹ 400 lakh per unit: Under the scheme, for eligible manufacturing/processing units, the loan amount (termed as Flexi Working Capital Term Loan) can go up to ₹ 400 lakh (₹ 4 crore).
- Repayment flexibility including one year moratorium: The scheme allows an option where no principal is required to be repaid during the first year after sanction; after that the loan may be renewed based on performance or repaid in 30 instalments. This gives your enterprise a breathing period to stabilise.
- Collateral and higher security norms for units with existing bank finance: Collateral security is required: if your unit has existing bank finance/working capital, the collateral requirement is more stringent (125% or 150% of the loan amount) depending on bank-financed status. This ensures risk mitigation for TIIC.
- Eligibility for new/additional working capital, existing assisted or non-assisted units: The scheme covers both units that have been assisted by TIIC and those that have not; it is available to manufacturing/processing units in Tamil Nadu. This flexibility means your enterprise whether new or existing can consider this route.
Financial Assistance
Eligibility Criteria
Who can apply:
- Manufacturing & processing units in Tamil Nadu that have been in operation for past two financial years and earned cash profit for the last two years.
- Units (assisted by TIIC) must have standard asset classification for last two years.
- Net worth must be positive.
- For working capital term loan (WCTL) component, new units under 2 years may also be considered if they meet certain criteria.
Who cannot apply:
- Units not registered or operating in Tamil Nadu under the relevant policy.
- Units that are non-manufacturing/processing (depending on scheme variant) or units that have been categorised as sick/under non-standard asset category.
- Units that cannot meet the promoter’s contribution requirement or do not satisfy collateral/security norms.
- Units unable to meet the repayment/loan servicing norms as prescribed by TIIC.
Documents Required
- MSME registration certificate or equivalent manufacturing unit registration.
- Audited financial statements for last two financial years (balance sheet, profit & loss).
- Cash-profit certificate / net worth certificate showing positive net worth.
- Details of working capital requirement and project report outlining use of funds.
- Promoter contribution proof (25% of working capital assessed).
- Collateral security documentation as required by TIIC (fixed deposit, immovable property, third-party guarantee, etc).
- Bank account details, KYC documents of promoter(s).
- Any other documents as required by TIIC regional/branch office.
Application Process for the Scheme
Option 1: Apply with Bullit (Recommended)
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Option 2: Direct Application via TIIC
- Visit TIIC’s official website and navigate to the “Flexi Working Capital Term Loan Scheme” page.
- Download the application form or apply online (if facility available).
- Fill in details: unit background, working capital requirement, financials, assurances, promoter contribution, etc.
- Submit documents including registration, audited financials, project details, etc.
- On sanction, the term loan is disbursed; adhere to repayment schedule as laid out (with initial holiday period where applicable).
Option 3: Through District/Regional Office/Agent
- Contact your local TIIC branch or district MSME/industrial development office.
- Obtain guidance, submit the completed application along with supporting documents.
- Follow up on sanction and disbursement via the branch.
Power Combos with The Scheme