In 1997 the Government of India notified ANIIDCO as a State Financial Corporation.  This heralded the process of ANIIDCO providing financial Assistance for setting up of Industrial concerns as per the guidelines of IDBI.

The Govt. of India has declared the entire Andaman and Nicobar Islands as Industrially backward area of category “A”

INCENTIVES & CONCESSION BY A&N ADMINISTRATION

	25% capital Investment Subsidy  up to a maximum  of Rs.25 lakh;
	Reimbursement of  Island Mainland  and Inter-Island  Transport subsidy;
	Concessional loan upto Rs.5 lakh;
	Credit Guarantee upto Rs.10 lakh;
	Allotment of Industrial  Shed/Plot etc.

LOAN TO TINY AND COTTAGE INDUSTRIAL PROJECTS

Under the scheme a maximum loan of Rs. 5.00 lakh is extended to SSI units at concessional interest rate of 7% for term loan and 10% for working capital.

Eligible Borrowers

All Small Scale Industrial Units/Small Scale Service Business Enterprises registered with Directorate of Industries are eligible  for obtaining loan.

Quantum of loan

The Corporation extends terms Loan for purchase of machinery, allied accessories and construction of building  upto a maximum of Rs.4.50 lakh and working capital loan upto a maximum of Rs.0.50 lakh.

Promoter’s Contribution

Minimum of 15% of the project cost

Security

Upto Rs.1 lakh – Govt. servant guarantee.  Above Rs.1 lakh Collateral security  of land, building, bank guarantee etc.

Rate of Interest 7% per annum on term loan and 10% per annum on working capital loan. Penal interest of 14% per annum is charged on the amount in default for the period of default.

Repayment Period

A maximum period of 7 years with moratorium period of 6 months to two years depending on the project.

GENERAL SCHEME

Under the scheme industrial concerns as per IDBI guidelines are extended financial assistance.

Eligible Borrowers

Units  engaged in manufacture preservation of processing of goods.

Transport for passengers or goods;

Hotel and Restaurants;

Assembling, repairing or packing any article with  the aid of machinery or power;

Providing  engineering, technical knowledge  or other service for promotion of industrial growth;

Providing  medical, health  or other allied service;

Any other such activity as IDBI may specify.

Quantum of loan

 75% of the total project cost  up to Rs.10 lakh and 66% of the total project  cost exceeding  Rs.10 lakh for purchase of machinery, construction of building.

Promoter’s Contribution

Minimum 25%for the project cost upto Rs.10 lakh and minimum 34% for project cost exceeding Rs.10 lakh.

Rate of Interest

          upto Rs.2.00 lakh                                   -        10.75%

          above Rs.2.00 lakh upto Rs.25 lakh      -         11.75%

            above Rs. 25 lakh                                 -         12.25%

         (Subject to change as per IDBI/SIDBI Guidelines)

Rebate of 1% for prompt payment  is given for loan proposals above Rs.2.00 lakh.

Security Details

a)     Upto Rs.1 lakh – Govt. servant guarantee

b)     Above Rs.1 lakh – Collateral security  of land, building, bank guarantee etc.

Repayment period

A maximum period of 10 years with a moratorium period of 6 months to 2 years depending on the project.  

SCHEME FOR TOURISM PROJECTS

• Eligibility: Hotels, Restaurants, Tourist Vehicle, Travel Agency etc.
• Quantum  of loan: 70% of the costs up to maximum ceiling of Rs.20 lakh subject to promoter contribution of 30% of the loan amount.
• Rate of Interest: 2% lower than normal lending rate of loans given under General Scheme.
• Security: Up to Rs. 2 lakh guarantee of Govt. servants ( 20 times of net pay). Above Rs. 2 lakh collateral security of land and FD etc.

How to apply

Application should be made in the prescribed form available in  the Corporation  on payment.

Processing fees 

Processing  fee of 0.25% of the loan amount subject to minimum of Rs.1000/- is charged.

 A&N ISLANDS CREDIT GUARANTEE SCHEME

Under the scheme SSI Units unable to offer collateral security for obtaining credit facilities from lending institutions are provided credit guarantee in lieu of collateral security.  The scheme covers working capital and term loan.  Guarantee is restricted to 75% of the amount in default subject to a maximum of Rs.10lakh. Borrowers are required to pay guarantee fee of 5% on the loan sanction by the lending  institutions.