Purpose:
To focus on providing financial assistance through provision of interest subsidy on loans to support establishment of Individual & Group Enterprises and Self-Help Groups (SHGs) of urban poor.
Eligibility:
- Individuals/Groups including Street Venders/Hawkers of urban poor for setting up self-employment ventures/ micro-enterprises.
- Self Help Groups (SHGs) of urban poor to access easy credit.
Type of Loan:
Term Loan/Working Capital
Quantum of Loan:
- Individual Enterprises (SEP-I)-Maximum unit Project Cost for an individual micro-enterprise is ₹ 2,00,000/-
- Group Enterprises (SEP-G)-The group will be eligible for a maximum loan of Rs. 2 Lakh per member or Rs. 10 Lakh, whichever is lower.
Margin:
No margin money should be taken for a loan up to ₹ 50,000 and for higher amount loans, preferably 5% should be taken as margin money and it should in no case be more than 10% of the project cost.
Security:
Hypothecation of assets created out of Bank loan.
Repayment:
5 to 7 Years after initial moratorium of 6-18 months.
Subsidy:
Interest subsidy, over and above 7% rate of interest will be available on a bank loan for setting up of individual or group enterprises
Processing Charges:
NIL
*Conditions Apply