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Loan Schemes

Programmes / Loan Schemes

The Board is implementing the following loan schemes:-

(i)    Rajiv Gandhi Swavlamban Rozgar Yojna(RGSRY)
(ii)   Prime Minister Employment Generation Programme(PMEGP)

(iii)  KVIC : C.B.C. Scheme 
(iv)  Block Loan Scheme

(v)   KVIC : Pattern Based Scheme

Out of the above, funds disbursement under three schemes quoted at S.No.(iii), (iv) and (v) are not in continuation. Only recovery of the funds is going on. The schemes quoted at S.No (i) i.e. RGSRY( Rajiv Gandhi Swavlamban Rozgar Yojna) and (ii) i.e. PMEGP (Prime Minister Employment Generation Program) are being implemented by this Board.

The details of the schemes are as under:


(i) Rajiv Gandhi Swavlamban Rojgar Yojna (RGSRY):Rajiv Gandhi Swavlamban Rozgar Yojna has been designed, developed and promoted by the Delhi Khadi & Village Industries Board, with the help of Government of NCT of Delhi, to provide the employment opportunities to the unemployed youths, artisans, trained professionals, skilled technocrats and entrepreneurs by promotion/expansion of permissible industries, professions, tertiary and service sector in the UT of Delhi.

 

1.   Eligibility:

            A. Any one of the following can avail loan under the scheme:-

                (a) School/College dropouts above the age of 18 years.

                (b) Individual entrepreneur.

                (c) Trade Professionals

                (d) Artisan

                (e) Small-Scale Industrial units which have total investment of plant, machinery and equipment not exceeding the ceiling prescribed for small scale units by the Central Government from time to time and must be located within the National Capital Territory of Delhi, shall also become eligible for financial aid of loan.

               (f) Passed out candidates from any technical/professional institute recognized by the Government or its authorized undertakings, without further training.

B.   Age Limit: 18 years to 50 years

2.   Jurisdiction, Purpose and Quantum of Assistance:-     

  Financial aid as loan under these rules may be granted to the eligible projects pertains to any of the following groups/sector:-

i)      Secondary Sector (Tiny/Cottage Industries)

ii)     Tertiary Sector (Trade, Transportation, Hostels, Restaurants  without Liquor and Meat etc.)

iii)    Services Sector: (Under the ambit of various Terms & Conditions,    provisions of local bodies and Delhi Master Plan.)      

3.  Quantum of Loan:-

    i)The quantum of loan granted under this scheme, to proposed and functioning units shall not exceed Rs. 3,00,000 provided that concerned entrepreneur shall make at least 10% contribution of amount demanded as loan from the DKVIB. In case of weaker sections i.e. SC/ST/OBC/Ph.H. /Women/Ex. Servicemen, only 5% contribution of entrepreneur is required.

   ii)Loan shall not be sanctioned to such parties who have already been advanced any loan for the same or similar purpose by the Government or any Government controlled financial institutions and has not been repaid in full with interest or has been mis-utilized and/or misapplied.

4.  Subsidy:-

            Govt. of Delhi would provide subsidy @ 15% of the project cost subject to the ceiling of Rs. 7,500.00 per entrepreneur.  In case of more than one entrepreneur joining together and setting up a project under partnership, subsidy would be calculated for each partner separately, @15% of his share in the project cost, limited to Rs. 7,500.00 each partner. Subsidy component would be adjusted to the borrower’s loan account after a period of two years from the date of disbursement of loan. Subsidy component would be recovered from the borrower along with 18 % penal interest in cases where the loan amount has been found not utilized for the purpose for which it was released.

5.  Tenure of loans and Repayment :-

      (i)Every loan with interest thereon shall be repaid in full within 5 years in equal quarterly installments.  The recovery of loan may be started after a gap of 12 months from the date of release of loan amount. However, interest on released amount will be recoverable form the first quarter, from the date of release of loan amount. To ensure timely recovery, borrower shall provide equal nos. of post dated cheques for quarterly installments of Principle amount including interest due as on date of installment fixed by the Board. 

       (ii) The Borrower shall ensure for timely encashment of each and every cheque.  In case of any default, DKVI Board will be entitled to take  action against him / her and/or sureties as prescribed under the law.

6. Rate of interest:-

            The loan granted under this scheme shall bear interest as prescribed by the Govt. of NCT of Delhi from time to time.  The interest on loan will accrue from the date of its disbursement and where the loan is disbursed in installments, interest shall run on each installment from the date of disbursement of such installment. No interest subsidy. 

7.  Utilisation of Loan:-

       (i)The borrower shall utilize the loan for the specific purpose for which it is advanced within three months.  However, Managing Director of the DKVI Board will be competent to grant maximum three months grace for the utlisation of amount released by the DKVI Board.  After six months, no further concession will be allowed and in case of non-utilisation of funds within the maximum permissible period, loan amount will be treated as mis-utilized and DKVI Board will be liable to make recovery of entire amount alongwith 18% interest or as prescribed from time to time by Delhi Govt.

     (ii) If the borrower utilizes the financial assistance received from the DKVI Board in violation of the provisions of  these loan rules or instructions of the DKVI Board, the amout of loan shall be treated as mis-utilised and shall invite interest @18% along with principal amount may be recovered.

8.   Security of Loan: -

           The applicant shall furnish a surety/security of one Govt. Servant may be either of the employee of GNCTD or of its autonomous bodies or Central Govt. Employees, working in Delhi.

9.  Training Details: - 

      Since the scheme envisages conversion of energy of school dropouts or those who have not gone beyond school education as well as of college dropouts, emphasis would be on skill formation/enhancement of the selected candidates selected by the Board. The primary purpose of imparting skills to the candidates is for enabling them to take up self-employment. The focus, therefore, will be on skill formation and entrepreneur development, basic component of which would be: -

         i.   Skill formation.

         ii.   Elements of book keeping.

         iii.   Simple knowledge of marketing.

         iv.  Acquaintance with product costing.

         v.   Familiarization with project financing by banks and other financial institutions.

 

10.  Marketing Support:-

            Under this scheme the following arrangements are proposed for extending marketing support to the beneficiaries who avail financial assistance under this Scheme. 

i)      Display of their products in Delhi Emporium as per availability of space.

ii)     DSIIDC/ Cooperative Stores can get the products manufactured by the selected  entrepreneurs and market the same in their own brand name.

ii)    Allowing such entrepreneur to participate in trade fairs particularly in Delhi Pavilion and in the exhibitions organized by Board or any other Govt. Organization.

iv)     Issue of certificate to the beneficiary unit to get the recognition in the market/society.

11.  Submission of  Application :-

            The applicant shall submit the application to the DKVI Board on the prescribed Loan Application Form. The loan application can also be downloaded from the website of  the Board and can deposit along with all essential documents and a fee of  Rs.20/- or  as precribed by the Board (equal to the cost of loan application form). 

12. Area of Implementation:-

           Under Rajiv Gandhi Swavlamban Yojna industrial/professional unit can be set up in any area comes under preview of Govt. of NCT of Delhi. In residential / non conforming areas loan for only those professionals/ industrial activities will be provided which are permitted under the Master Plan of Delhi for those areas. To set up a unit in non-confirming areas, the applicant will also submit  NO OBJECTION CERTIFICATE of High Power Committee constituted by Industries  Department, Govt. of Delhi and Municipal Corporation License (MCL), for the respective industry. In the case of professional / commercial activities the applicant should also submit  Registration Certificate from MCD for the concerned trade.

13.  Processing of Application:- 

               Applications received under the scheme will be dealt on First Come First Serve basis.

 

14.  Facilitation Center:-

           Public relation officer/ Development officer will be available daily for inquiry about the scheme.

 

  The list of Documents required along with the loan application form:

   a. Electoral Card as Identity proof     

   b. Passport size attested photographs :two

   c. Education 

   d. Work Site detail

   e.  Electricity Bill(Residence)

   f.   (i) For Shop/ Business/Professions:Registration Certification from MCD

        (ii) Industrial unit in non-confirming area:  noc of  HPC & MCL 

   g. Affidavit in prescribed format, duly attested by the NOTARY PUBLIC.

 

PROFORMA

AFFIDAVIT FOR LOAN DECLARATION

     (To be typed on Non-Judicial Stamp Paper of Rs 10/- duly attested by Notary Public with Rs. 5/- Notarial stamp.) 

I----------------------------------------------------- W/o S/o D/o Sh. ------------------------------------------aged------------------( years) R/O-------------------------------------------------------------------------------------------do hereby solemnly affirm and declare as under:

1. (a) That neither I nor my spouse or any member of my family, including adult children have token loan or applied for any financial assistance from either of the following department:-

A.  Department of Industries, Govt. of Delhi

B.  Khadi & Village Industries Commission, Govt. of India

C.  Dehi Khadi & Village Industries Board, Govt. of Delhi.

D. District Rural Development Agency, Delhi.

E.  Delhi Scheduled Caste, Scheduled Tribe and OBC Development and Financial Corporation Ltd. Delhi.

F.  Delhi Financial Corporation.

G.  Any Nationalized/ Scheduled Bank.

H. Delhi State Co-operative Bank Ltd. Delhi

I. Any other Govt./Non Govt. Financial Agency / Institution

OR

(b). That I have taken the loan of Rs      .for the purpose of.. ………from …………     Its latest outstanding amount is Rs ……….           .

6.That my date of Birth is ........................................     .

7.That my Education is             .

8.  That neither I, nor any member of my family is a member of any Co-operative Society, Registered Institution which have applied or taken any loan from the departments mentioned in para one above.

9.  That I am fully responsible for the statement made above and concealment of any fact will render me liable for action as may be deemed fit by the Board.

DEPONENT

VERIFICATION

I, the above deponent verify that the facts stated in para one to five are true to the best of my knowledge and belief and nothing has been concealed there from.

            Verified on this             day of 200

DEPONENT

 

Click below on the following link to see the details :


 Rajiv Gandhi Swavlamban Rojgar Yojna (RGSRY) 


Click to download the loan application form under RGSRY scheme

 

(ii) Prime Minister Employment Generation Programme (PMEGP)

          This Prime Minister Employment Generation Programme (PMEGP) scheme is controlled by Ministry of Micro, Small and Medium Enterprises, Govt. of India.
          This scheme is started by Khadi & Village Industries Commission (KVIC), Govt. of India as single nodal agency at National Level.  At State Level, the Scheme is to be implemented by State Khadi & Village Industries Boards (KVIBs) in rural areas and by District Industries Centres (DICs) in Urban areas.

           The Delhi Govt. has decided to allow the DKVIB to operate both in Rural and Urban Areas so as to enhance their functional operations keeping in view the shrinking of Rural Areas in Delhi on account of urbanization and regularization of many unauthorized colonies in Delhi by the Govt.
                    
       The salient features of this scheme are as under: -

  (i) Quantum and Nature of Financial Assistance: -

               The maximum cost of project/unit admissible under manufacturing sector is Rs.25 lacs.
               The maximum cost of project/unit admissible under business / service sector is Rs.10 lacs.

Categories of beneficiaries under PMEGP

        Beneficiary’s contribution
       (of  project cost)

Rate of Subsidy (of project cost)

Term loan

Area (location of project / unit)

Urban

Rural

The balance amount of the total project cost will be provided by Banks as term loan.

General Category

10%

15%

25%

Special (including SC/ST etc.)

05%

25%

35%

 The Government subsidy under the scheme will be routed by KVIC through the identified banks for eventual distribution to the beneficiaries in their Bank Accounts.  Banks will sanction 90% of the project cost in case of General Category of beneficiary / institution and 95% in case of special category of beneficiary / institution and disburse the full amount suitably for setting up the project. 

 

(ii) Eligibility Condition: -  

 

(i) Any individual, above 18 years of age

  1. There will be no income ceiling for assistance for setting up projects under PMEGP.
  2. 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. 
  3. Assistance under the Scheme is available only for new projects sanctioned specifically under the PMEGP.
  4. Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme) are also eligible for assistance under PMEGP.   
  5. Institutions registered under Societies Registration    Act,1860;
  6. Production Co-operative Societies, and
  7. Charitable Trusts.
  8. 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.

Other eligibility conditions:
(i) A certified copy of the caste/community certificate or relevant document issued by the competent authority in the case of other special categories, is required to be produced by the beneficiary to the concerned branch of the Banks along with the Margin Money (subsidy) Claim.    
(ii)  A certified copy of the bye-laws of the institutions is required to be appended to the Margin Money (subsidy) Claim, wherever necessary.
(iii) Project cost will include Capital Expenditure and one cycle of Working Capital.  Projects without Capital Expenditure are not eligible for financing under the Scheme.  Projects costing more than Rs.5 lakh, which do not require working capital, need clearance from the Regional Office or Controller of the Bank’s Branch and the claims are required to be submitted with such certified copy of approval from Regional Office or Controller, as the case may be.
(iv) Cost of the land should not be included in the Project cost. Cost of the ready built as well as long lease or rental Work-shed/Workshop can be included in the project cost subject to  restricting  such  cost of ready built as well as long lease or rental workshed/workshop to be included in the project cost  calculated for a maximum period of 3 years only.
(v)  PMEGP is applicable to all   new viable micro enterprises, including Village Industries projects except activities indicated in the negative list of Village Industries. Existing/old units are not eligible (Para 29 of the guidelines refers).
Note:
(1) The Institutions/Production Co-operative Societies/Trusts specifically registered as such and SC/ ST/ OBC/ Women/ Physically Handicapped / Ex-Servicemen and Minority Institutions with necessary provisions in the bye-laws to that effect are eligible for Margin Money (subsidy) for the special categories.  However, for   Institutions /Production Cooperative Societies/Trusts not registered as belonging to special categories, will be eligible for Margin Money (Subsidy) for general category. 

(2) 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.

 

(iii)    The beneficiary can obtain Loan Application form from the office of KVIB and Khadi and Village 

       Industries Commission[KVIC], K Blk, Chaudhary Building, Connaught Place,New Delhi-110001.

       The application form can also be downloaded from website http://dkvib.delhigovt.nic.in/, wwww.PMEGP.in. The complete application form will be deposited in the office of DKVIB and Khadi & Village Industries Commissioner and in the office of  District Commissioner.

(iv)    Selection of Applicants: - KVIB/KVIC/DIC officer, after ascertaining the applications will forward the same to the respective District Task Force Committees for evaluation and recommendation to the Board

(v)     Rate of interest and Repayment Schedule  Normal rate of interest shall be charged. Repayment schedule may range between 3 to 7 years after an initial moratorium as may be prescribed by the concerned bank/financial institution. 

(vi)    Village Industry Any Industry including Coir based projects (except those mentioned in the negative list) which produces goods or renders any service with or without the use of power and in which the fixed capital investment per head of a full time artisan or worker i.e. Capital Expenditure on workshop/workshed, machinery and furniture divided by full time employment created by the project does not exceed Rs. 1 lakh in plain areas and Rs.1.50 lakh in hilly areas. 

   (Vii) Rural Area

(i) Any area classified as Village as per the revenue record of the State/Union Territory, irrespective of population.

(ii) It will also include any area even if classified as town, provided its population does not exceed 20,000 persons

 

Negative List of Activities:

                            The following list of activities will not be permitted under PMEGP for setting up of micro enterprises / projects /units.

a) Any industry/business connected with Meat(slaughtered),i.e.processing, canning and/or serving items made of it as food,production/manufacturing or sale of intoxicant items like Beedi/Pan/Cigar/Cigarette etc., any Hotel or Dhaba or sales outlet serving liquor,preparation/producing tobacco as raw materials, tapping of toddy for sale.
b) Any industry/business connected with cultivation of crops/plantation like Tea, Coffee, Rubber etc. sericulture (Cocoon rearing),Horticulture, Floriculture, Animal Husbandry like Pisciculture, Piggery,Poultry, Harvester machines etc.
c) Manufacturing of Polythene carry bags of less than 20 microns thickness and manufacture of carry bags or containers made of recycled plastic for storing, carrying, dispensing or packaging of food stuff and any other item which causes environmental problems.
d) Industries such as processing of Pashmina Wool and such other products like hand spinning and hand weaving, taking advantage of Khadi Programme under the purview of Certification Rules and availing sales rebate.
e) Rural Transport (Except Auto Rickshaw in Andaman & Nicobar Islands, House Boat, Shikara & Tourist Boats in J&K and Cycle Rickshaw).

 

To download application form along with details of  PMEGP Click on link below 
i)For details, click on Prime Minister Employment Generation Programme (PMEGP)

ii)Click to download the loan application form under PMEGP scheme


(iii) KVIC : Pattern Based :

This Scheme was in operation up to 1995-96 only. Under this scheme, KVIC has provided funds for setting up of village industries on pattern based funding Board had released funds to 6680 units amounting to Rs.557.91 lacs as loan and Rs.27.72 lacs as grant. The Board had recovered an amount of Rs.579.67 lacs till 31st March 2010 and remitted to KVIC under this scheme. The recoveries are still going on under this scheme. 


(iv) KVIC : CBC Scheme:



From 1995-96, KVIC has changed Pattern Based Financial Assistance Scheme to Project Based Scheme called 'Consortium of Bank Credit Scheme'. Under this scheme, funds are released on the basis of State Guarantee. Ministry of Industries, Govt. of India has provided state Guarantee to the tune of Rs. 15.00 crore in 1996-97 for this Board. This scheme was in operation from 1995-96 to 2001-02. Under this scheme, Board had released funds to 130 units amounting to Rs. 204.09 lacs as loan and Rs. 96.30 lacs as Margin Money. Board had remitted an amount of Rs. 281.82lacs till 31st March 2010 to KVIC under this scheme.

 
(v) Block Loan Scheme:


This scheme was transferred from Industry Department, Govt of Delhi to this Board during the year 1990-91. Under this scheme, a fixed loan of Rs.10,000/- for working capital was provided to existing small-scale units. Funds for the Scheme were provided by Govt. of Delhi under plan scheme. Due to very little quantum of financial assistance,this scheme gradually became unpopular and was finally discontinued from the year 1995-96. The Board disbursed Rs. 51.40 lakhs to 514 units form the year 90-91 to 95-96. A sum of Rs.81.83 lakhs has been recovered upto 31.3.2010 & remitted back to Industries Deptt. & recovery proceeding of overdue amount is under process.

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Last Updated : 23 Mar,2014