GOVERNMENT SPONSORED SCHEMES

NATIONAL URBAN LIVELIHOODS MISSION (NULM)

This Scheme will focus on financial assistance to individuals/groups of urban poor for setting up gainful self-employment ventures/ micro-enterprises, suited to their skills, training, aptitude and local conditions. The component will also support Self Help Groups (SHGs) of urban poor to access easy credit from bank and avail interest subsidy on SHG loans. The underemployed and unemployed urban poor will be encouraged to set up small enterprises relating to manufacturing, servicing and petty business for which there is considerable local demand.

a) Self Employment Program- Individual (SEP-I)

Identification of beneficiary:

Urban Local Body (ULB) will identify the prospective beneficiaries from among the urban poor. The beneficiaries may directly approach ULB or its representatives for assistance.

Educational Qualifications and Training Requirement:

No minimum educational qualification is required. However, where the identified activity for micro-enterprise development requires some special skills, appropriate training must be provided.

Quantum of Loan:

The Maximum unit Project Cost for individual micro-enterprises cases is Rs. 200,000/- (Rs Two Lakhs Only)

Repayment

Repayment schedule ranges from 5 to 7 Years after initial moratorium of 6-18 months as per norms of the banks.

Pattern of Financial Assistance

The financial assistance available to urban poor in setting up individual and group enterprises will be in the form of Interest subsidy on the bank loans. Interest subsidy, over and above 7% rate of interest will be available on a bank loan for setting up of individual or group enterprises. The difference between 7% p.a. and the prevailing rate of interest will be provided to banks under NULM. Interest subsidy will be given only in case of timely repayment of loan.

b) Self Employment Program- Group Enterprises(SEP-G)

A Self Help Group (SHG) or members of an SHG constituted under SJSRY/ NULM or a group of urban poor desirous of setting up a group enterprise for self-employment can avail benefit of subsidized loans under this component from any bank.

Eligibility Criteria:

The group enterprise should have minimum 5 members with a minimum of 70% members from urban poor families. The application/ intent to set up a group community structures viz: SHG/ ALF formed under SJSRY/NULM.

Quantum of Loan:

The Maximum unit Project Cost for a group enterprise is Rs 10,00,000 (Rs. Ten Lakhs). Project Cost less beneficiary contribution (as per bank norms) would be made available as loan amount to the group enterprise by the bank.

Repayment

Repayment schedule ranges from 5 to 7 Years after initial moratorium of 6-18 months as per norms of the banks.

Pattern of Financial Assistance

c) Interest Subsidy on SHG Loans (SHG-Bank Linkage)

Linking of SHGs with banks have been emphasized in the monetary policy of Reserve Bank of India and Union Budget announcements from time to time. To scale up the SHGs linkage programme and make it sustainable, banks have been advised to consider lending to SHGs as part of their mainstream credit operations both at policy and implementation level.

Target Group

Already existing and functional SHGs.

Pattern of Financial Assistance

The interest subsidy will be the difference between the prevailing rate of interest charged by the bank and 7% per annum, on all loans to SHGs of urban poor. This difference in interest amount on SHG loan (between the prevailing rate of interest and 7% per annum) will be reimbursed to banks. An additional 3 percent interest subvention will be provided to all Women SHGs (WSHGs) who repay their loan in time.

SELF HELP GROUPS (SHGs)

Eligibility criteria:

· SHG should be in active existence at least since the last 6 months as per the books of account of SHGs and not from the date of opening of S/B account.

· SHG should be practicing 'Panchasutras' i.e. regular meetings, regular savings, regular inter-loaning, Timely repayment and Up-to-date books of accounts.

· The existing defunct SHGs are also eligible for credit if they are revived and continue to be active for a minimum period of 3 months.

Loan amount:

Dose	Loan Amount	Repayment Schedule
First Dose	6 times of the existing corpus or minimum of ₹ 1 lakh whichever is higher	The First year/ first dose of loan will be repaid in 12-18 months in monthly/ quarterly instalments
Second Dose	8 times of the existing corpus or minimum of ₹ 2 lakh, whichever is higher	The Second year/ Second dose of loan will be repaid in 18-24 months in monthly/ quarterly instalments
Third Dose	Minimum of ₹ 3 lakhs based on the Micro credit plan prepared by the SHGs and appraised by the Federations/ Support agency and the previous credit history	The Third year/ Third dose of loan will be repaid in 24-36 months in monthly/ quarterly instalments
Fourth Dose	Minimum of ₹ 5 lakhs based on the Micro credit plan prepared by the SHGs and appraised by the Federations/ Support agency and the previous credit history	The loan from Fourth year/ Fourth dose onwards has to be repaid between 3-6 years based on the cash flow in monthly/ quarterly installments

KISAN CREDIT CARD LOAN SCHEME

The Kisan Credit Card scheme is a Government of India scheme launched in 1998 with the aim of providing short-term formal credit to farmers in the agriculture, fisheries and animal husbandry sector. The PM Kisan Credit Cards have now been linked to the Pradhan Mantri Kisan Samman Nidhi Yojana.

Quantum of Loan:

· Farmers can seek a loan from KCC for agriculture activity for up to Rs.3 lakh at 7% interest rate with 3% incentive for prompt repayment. The validity period is 5 years.

· KCC for animal husbandry and fisheries activity for up to Rs.2 lakh at 7% interest rate with 3% incentive for prompt repayment. The validity period is 5 years.

· With the help of this scheme, farmers can avail loan up to Rs.1.60 lakh without any collateral and repay their loans depending on the harvesting period of their crop for which the loan was given.

Eligibility Criteria:

· Any individual farmer who is an owner-cultivator.

· People who belongs to a group and are joint borrowers. The group has to be owner-cultivators.

· Sharecroppers, tenant farmers, or an oral lessee are eligible for the KCC.

· Self-help groups (SHG) or joint liability groups (JLG) of sharecroppers, farmers, tenant farmers, etc.

· Farmers involved in the production of crop or allied activities such as animal husbandry along with non-farm activities such as fishermen.

· Inland Fisheries and Aquaculture: Fish farmers, fishers, SHGs, JLGs, and women groups. As a beneficiary, you must own or lease any activity related to fisheries. This includes owning or leasing a pond, an open water body, a tank, or a hatchery among others.

· Poultry: Individual farmers or joint borrowers, SHGs, JLGs, and tenant farmers of sheep, rabbits, goats, pigs, birds, poultry, and have sheds they have owned, rented, or leased.

· Dairy: Farmers, dairy farmers, SHGs, JLGs, and tenant farmers who own, lease, or rent sheds.

PRIME MINISTER'S EMPLOYMENT GENERATION PROGRAMME (PMEGP)

PMEGP is a central sector scheme being administered by the Ministry of Micro, Small and Medium Enterprises (Mo MSME).The scheme is being implemented by Khadi and Village Industries Commission (KVIC), a statutory organization under the administrative control of the Ministry of MSME as the single nodal agency at the National level. At the State level, the scheme is implemented through State offices of KVIC, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs), Coir Board(for coir related activities) and Banks.

Objectives:

i. To generate employment opportunities in rural as well as urban areas of the country through setting up of new self-employment ventures/projects/micro enterprises.

ii. To bring together widely dispersed traditional artisans, rural and urban unemployed youth and give them self-employment opportunities to the extent possible, at their place.

iii. To increase the wage-earning capacity of workers and artisans and contribute to increase in the growth rate of rural and urban employment.

Target Group:

The participants are mainly the Unemployed youths, Students of universities, educational institutions, technical institutions, Skilled and Unskilled artisans comprising of all categories of the Society. Special focus should be explored for the target group such as SC/ST, OBC, Transgender, Women, Ex-Servicemen etc. during the awareness camps.

Identification of Beneficiaries:

The applicants, who have already undergone training of at least 10 Days (for offline mode)/ 60 hours (for online mode) under Entrepreneurship Development Programme (EDP) / Skill Development Programme (SDP) / Entrepreneurship cum Skill Development Programme (ESDP) or Vocational Training (VT) need not undergo EDP training again.

Eligibility Criteria:

i. Any individual, above 18 years of age

ii. There will be no income ceiling for assistance for setting up projects under PMEGP.

iii. The beneficiaries should possess at least VIII standard pass educational qualification.

iv. Assistance under the scheme is available only for new projects sanctioned specifically under the PMEGP.

v. Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible.

vi. Only one person from one family is eligible for obtaining financial assistance for setting up of projects under PMEGP. The 'family' includes self and spouse.

Quantum of Loan:

For setting up of project costing above Rs.10 lakhs in the Manufacturing sector and above Rs. 5 lakhs in the Business /Service sector

Repayment:

Repayment schedule may range between 3 to 7 years after an initial moratorium as may be prescribed by the concerned bank/financial institution.

Margin Money Subsidy:

1. For setting up of New Micro Enterprise (units):

Categories of beneficiaries under PMEGP (for setting up of new enterprises)	Beneficiary's contribution	Rate of Subsidy
Area (location of project/unit)	Beneficiary's contribution	Urban	Rural
General Category	10%	15%	25%
Special Category (including SC,ST,OBC, Minorities, Women, Ex-Servicemen, Transgenders, Differently abled, NER, Aspirational Districts, Hill and Border areas(as notified by the Government) etc.	5%	25%	35%

i. For setting up of project costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business /service sector, the beneficiaries should possess at least VIII standard pass educational qualification.

ii. The maximum cost of the project/unit admissible for Margin Money subsidy under manufacturing sector is Rs. 50 lakhs.

iii. The maximum cost of the project/unit admissible for Margin Money subsidy under Business/Service sector is Rs. 20 lakhs.

iv. The balance amount (excluding the own contribution) of the total project cost will be provided by Banks.

v. If the total project cost exceeds Rs. 50 lakhs or Rs. 20 Iakhs for Manufacturing and Service/Business sector respectively, the balance amount may be provided by Banks without any Government subsidy.

2. Loan for Upgradation of existing for 2nd Loan:

Categories of beneficiaries under PMEGP

(for upgradation of existing units)

Beneficiary's contribution

Rate of Subsidy

All Categories

10%

15%

(20% in NER and Hill States)

Note:

i. The maximum cost of the project/unit admissible for Margin Money subsidy under manufacturing sector for upgradation is Rs. 1.00 crore. Maximum subsidy would be Rs.15 lakh.

ii. The maximum cost of the project/unit admissible for Margin Money subsidy under Business/Service sector for upgradation is Rs. 25 Lakh. Maximum subsidy would be Rs.3.75 lakh.

iii. The balance amount (excluding the own contribution) of the total project cost will be provided by Banks.

iv. If the total project cost exceeds Rs. 1.00 Crore or Rs. 25.00 Lakhs for Manufacturing and Service/Business sector respectively, the balance amount maybe provided by banks without any Government subsidy.

Eligibility For up-gradation of existing PMEG units:

i. Margin Money (subsidy) claimed under PMEGP has to be successfully adjusted on the completion of lock in period of 3 years.

ii. First loan under PMEGP/REGP/MUDRA has to be successfully repaid in stipulated time.

iii. The unit is profit making with good turnover and having potential for further growth in turnover and profit with modernization/upgrading the technology.

Role of Financial Institutions:

i. All Public Sector Banks

ii. All Regional Rural Banks, Co-operative Banks, Private Sector Scheduled Commercial Banks regulated by RBI

iii. Small Industries Development Bank of India (SIDBI)

Bank Finance:

i. The Bank will sanction 90% of the project cost in case of General Category of beneficiary and 95% in case of Special Category of the beneficiary and disburse full amount suitably for setting up of the project.

ii. Bank will finance Capital Expenditure in the form of Term Loan and Working Capital in the form of cash credit. Project can also be financed in the form of composite loan consisting of Capital Expenditure and Working Capital.

iii. Maximum project cost under PMEGP is Rs. 50 lakh, which includes Term Loan for Capital Expenditure and Working Capital.

iv. For Manufacturing units, Working Capital component should not be more than 40% of the project cost and for units under Service/Trading sector, the Working Capital shall not be more than 60% of the project cost.

Procedure for Claiming Subsidy for PMEGP (Online Portal):

i. Registration of applications through online portal.

ii. Task Force Committee - screen the applications and forward recommended applications to Banks.

iii. Pre-sanction activities & documentation by Banks.

iv. Update Project Cost (100%) and Sanctioned Amount (90-95%) in Online Portal

v. EDP Training (online/ offline) for Sanctioned Applicants.

vi. Deposit of Margin money by the Applicants. The same to be updated by Banks in Online Portal.

vii. Loan disbursement (including Subsidy Amount) by banks and update the same in the Online Portal.

viii. Upload EDP Training Certificate & Loan Account Statement in the Online Portal.

ix. Claim Subsidy in the Online Portal (check for registered Bank A/C No.)

x. Subsidy will be credited directly to the Registered Bank A/C No.

xi. On receipt of Subsidy, separate TDR Account for each beneficiary is to be opened for 3 years and deposit the subsidy amount in that account.

xii. ROI should not be charged for the margin money and subsidy.

xiii. After completion of 3 years, subsidy amount to be adjusted against the loan.

STAND UP INDIA

Objective:

The objective of the Stand-Up India scheme is to facilitate bank loans between 10 lakh and 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise. This enterprise may be in manufacturing, services or the trading sector.

Eligibility:

i. SC/ST and/or woman entrepreneurs, above 18 years of age.

ii. Loans under the scheme is available for only green field project(New enterprises)

iii. In case of non-individual enterprises, 51% of the shareholding and controlling stake should be held by either SC/ST and/or Women Entrepreneur.

iv. Borrower should not be in default to any bank/financial institution.

Nature of Loan:

Composite loan (inclusive of term loan and working capital) between 10 lakh and upto 100 lakh.

Margin Contribution:

Promoter Contribution is 25% of the project cost inclusive of term loan and working capital (Composite loan).

Repayment:

The loan is repayable in 7 years with a maximum moratorium period of 18 months

PRADHAN MANTRI MUDRA YOJANA (PMMY)

MUDRA loans are extended by banks, NBFCs, MFIs and other eligible financial intermediaries as notified by MUDRA Ltd. The Pradhan Mantri MUDRA Yojana (PMMY) announced by the Hon'ble Prime Minister on 8th April 2015, envisages providing MUDRA loan, upto ` 10 lakh, to income generating micro enterprises engaged in manufacturing, trading and services sectors.

Objective:

To create an inclusive, sustainable and value based entrepreneurial culture, in in achieving economic success, financial security and creating an ecosystem of growth for micro enterprises sector.

Quantum of Loan:

The MUDRA loans are extended under following three categories:

i. Loans upto 50,000/- (Shishu)

ii. Loans from 50,001/- to 5 lakh (Kishore)

iii. Loans from 5,00,001/- to 10 lakh (Tarun)

Eligible borrowers:

i. Individuals

ii. Proprietary concern.

iii. Partnership Firm.

iv. Private Ltd. Company.

v. Public Company.

Purpose of Assistance/Nature of assistance:

i. Term loan/OD limit/composite loan to eligible borrowers for acquiring capital assets and/or working capital.

ii. Provided for small business activity in manufacturing, processing, and service sector or trading.

Security:

i. First charge on all assets created out of the loan extended to the borrower and the assets which are directly associated with the business/project for which credit has been extended.

ii. CGTMSE/MUDRA Guarantee cover.

Repayment:

(a) Term Loan - To be repaid in suitable installments with suitable moratorium period as per cash flow of the business.

(b) OD & CC Limit - Repayable on demand.

PM STREET VENDOR'S ATMA NIRBHAR NIDHI (PM SVANidhi)

Street vendors represent a very important constituent of the urban informal economy and play a significant role in ensuring availability of the goods and services at affordable rates at the door-step of the city dwellers. The goods supplied by them include vegetables, fruits, ready-to-eat street food, tea, breads, eggs, textile, apparel, footwear, artisan products, books/ stationary etc. The COVID-19 pandemic and consequent lockdowns have adversely impacted the livelihoods of street vendors. Therefore, there is a need to provide credit for working capital to street vendors to resume their business.

Objective:

i. To facilitate working capital loan up to Rs.10,000

ii. To incentivize regular repayment; and

iii. To reward digital transactions

Eligibility Criteria:

i. Category A - Street vendors in possession of Certificate of Vending (CoV) / Identity Card issued by Urban Local Bodies (ULBs)

ii. Category B - Street vendors who have been identified in the survey but have not been issued Certificate of Vending / Identity Card

iii. Category C - Street vendors left out of the ULB led identification survey or who have started vending after completion of the survey and have been issued Letter of Recommendation (LoR) to that effect by the ULB / Town Vending Committee (TVC)

iv. Category D - Street vendors of surrounding development/ semi-urban / rural areas vending in the geographical limits of the ULBs and have been issued Letter of Recommendation (LoR) to that effect by the ULB / TVC

Quantum of Loan:

i. 1st Tranche-Rs.10,000/-

ii. 2nd Tranche Rs.20,000/-

iii. 3rd tranche Upto Rs.50,000/-

Repayment:

Urban street vendors will be eligible to avail a Working Capital (WC) loan of up to Rs. 10,000 with tenure of 1 year and repaid in monthly installments.

Interest Subsidy:

i. The vendors are eligible to get an interest subsidy @ 7%.

ii. The interest subsidy amount will be credited into the borrower's account quarterly, but account should be Standard.

iii. The subsidy will be available on first and subsequent enhanced loans up to that date.

Financial Institutions

i. All Public Sector Banks, Regional Rural Banks, Co-operative Banks, Private Sector Scheduled Commercial Banks regulated by RBI

ii. Small Industries Development Bank of India (SIDBI), NBFCs and MFIs.

PRADHAN MANTRI FORMALISATION OF MICRO FOOD PROCESSING ENTERPRISES (PMFME)

The unorganized food processing sector in the country comprises nearly 25 lakh food processing enterprises which are unregistered and informal. Most of these units falls under category of micro manufacturing units in terms of their investment in plant & machinery and turnover. The unorganized food processing industry in India faces challenges that limit its development and weakens performance. Unorganized micro food processing units, need intensive hand holding support for skill training, entrepreneurship, technology, credit and marketing, across the value chain, necessitating active participation of the state government for better outreach.

Objective:

i. Enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector; and

ii. Support Farmer Producer Organizations (FPOs), Self Help Groups (SHGs) and Producers Cooperatives along their entire value chain.

Target Group:

i. Individual Micro Enterprises

ii. Farmer Producer Organizations (FPOs)/Producer Cooperatives

iii. Self Help Groups (SHGs)

One District One Product:

The States would identify the food product for a district, keeping in perspective the focus of the scheme on perishables. A baseline study would be carried out by the State Government. The ODOP product could be a perishable agri produce, cereal based product or a food product widely produced in a district and their allied sectors.