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Self Employment Activities

SEMFEX - I  SCHEME

Introduction:

The aim is to provide financial assistance in liberalised terms to Ex-Servicemen, widows and Disabled Service Personnel through the State Financial Corporations.  The activities covered under the Scheme include Tiny, Small Scale Industries and Small Scale Service (Industry related) Enterprises. 

Project Cost Ceiling:            Rs.15.00 lakhs

Eligibility:

a) Age      - upto 60 years.
b) Should not have any outstanding loans.

Terms of Assistance: 

a)  In case of loan upto Rs.10.00 lakhs

(i)  Promoters’ contribution   -  10%
(ii) Soft Seed Assistance      -  15%
(iii) Term Loan                      -  75%

b)   In case of loans above Rs.10.00 lakhs & upto Rs.15.00 lakhs

(i)  Promoters’ Contribution  - 18.3%
(ii) Soft Seed Assistance     - 15.0 %
(iii) Term Loan                     - 66.7%

c)  Rate of Interest

(i)   Soft Seed Assistance       - 6%
(ii)   Term Loan                       - As per the  directive from RBI from  time to time.

(In case of Transport Projects Soft Seed Assistance is restricted to Gas Tankers, Pay Loaders and Tippers) 

Procedures:

(a)   Registration with Zila Sainik Board.
(b)   Submit applications to Zila Sainik Board.
(c)   Loan sanctioned by Tamil Nadu Industrial Investment Corpn.
(d)   Details can be obtained from Zila Sainik Board.

Collateral Security:

Collateral Security varies from 30 to 40% depending upon the merit of each case.

SEMFEX - II SCHEME

Introduction:

The Scheme envisages provision of comprehensive package of credit measures for encouraging Ex-Servicemen, widows and Disabled Service Personnel to undertake Agriculture and Allied activities or to set up non-farm units in rural areas.

Eligible Projects:

Farm Sector (Agriculture and Agro processing projects and allied activities), Non-farm Sector (Village, Cottage, Tiny and Small Scale Industries in rural areas), Small Scale Service Establishments and Small Road Transport Operators to carry farm produce/ products of Village industries (upto two vehicles).

Eligibility:

a)     No age restriction;
b)     Should not have any outstanding loans;
c)      Partnership with non-Ex-Servicemen is allowed subject to limitation of 25%;
d)     Project should be in rural area (irrespective of population) and in case of towns population should not exceed 50,000.

Loan amount:

a) Farm Sector - No upper ceiling limit.
b) Non-farm Sector -

(i)  Financial assistance is available for projects upto Rs.15.00 lakhs under the Integrated loan scheme.

(ii)  The Ceiling of Rs.15.00 lakhs will not be applicable in case of units relating to Agro Industries satisfying the limit of SSI, in so far as it relates to investment in plant and machinery

Margin Money: 

(No margin money in case of loan upto Rs.10,000/-)

a)  Farm Sector:

Land based activities: 1. Small Farmer : 5%

2. Medium Farmer :10%

3. Other Farmer :15%

b)     Non-Farm Sector:

Agro processing units:       25%

1. Loan upto Rs.25,000     : Nil
2. The Agro Industries       :12.5%
3. Non-Agro Industries       :25%
4. Small Road Transport    :15%

Soft Loan Assistance:

Soft Loan Assistance for Margin Money is applicable to all farm and     non-farm sector.

Interest:

Rate of interest to be charged by Banks will be as per directives from RBI/ NABARD.

Procedures:

a)  Registration with Zila Sainik Board.
b)  Forward 5 copies of application form with Project Report to Zila Sainik Board.
c)   The loan is sanctioned by the Scheduled Commercial Banks/ State/ District/ Central Co-operative Banks, Regional Rural Banks, Land.

Collateral Security:

There is no security for the Soft Loan under Farm and Non-Farm Sectors.  However, for loan of other types the security depends upon the guidelines issued by RBI/ NABARD from time to time

SEMFEX -III SCHEME

 Introduction:

The aim of the scheme is to provide adequate self-employment opportunities to Ex-Servicemen, war widows, Disabled Service Personnel and widows of Ex-Servicemen through promotion and development of Khadi & Village Industries (KVI) in the rural areas.

Eligibility:

a) Ex-Servicemen, widows and disabled Ex-Servicemen are eligible to take up Khadi & Village Industries programmes.  There is no age restriction except that the applicant should not be below 21 years of age.

b) The scheme is operative in villages having population of not more than 20,000.

c)   An affidavit duly notarised, to the effect that the Ex-Serviceman has not taken any benefit from Zila Sainik Board earlier.

Terms of Assistance:

Ex-Servicemen Co-operative institutions/ registered societies and individuals are given loans by Khadi & Village Industries Commission/ Khadi & Village Industries Board.  The loan is also made available under Margin Money Scheme through Banks.  In this case, the interest subsidy is born by the KVIC.

                                    Promoter's contribution                            -  5%
                                    Margin money (Tail end subsidy)              - 30%
                                    Term Loan                                              - 65% 

 Liberalised Pattern of Assistance to Ex-Servicemen:

Ex-Servicemen have been given the status of Special Target Group.  Therefore, Liberalised Pattern of Assistance has been made applicable to all the Ex-Servicemen, war widows, widows of Ex-Servicemen and disabled Ex-Servicemen, irrespective of their

income and location of the project.  Besides, Ex-Servicemen will also be accorded preferential treatment in the processing, sanctioning and disbursement of loans.  This assistance will also be extended to registered institutions/ Co-operative Societies which undertake Village Industries programmes. 

a)  Land.  No financial assistance is provided for land.
b)  Promotional Assistance: The KVIC sanction assistance for exhibitions, conferences, seminars and symposia etc.  The expenditure on these is sanctioned as 100% grant.  The annual schedule of such activities is prepared and informed to KVIC in advance by December end of the year.

Rate of Interest:

a)  Interest on loans for Khadi and Polyvastra including Polywool industries advanced by KVIC from its consortium fund is 4% p.a.

b) Loan for all village industries carries a rate of interest of 13% per annum (subject to change).

Repayment Period:

Loan should be repaid in 7 years in equal 28 instalments along with the interest.  The first instalment being due at the end of 12^th month

Conditions:

a)  The borrowing institution is required to execute legal documents, i.e., hypothecation deed and/ or mortgage deed covering movable and immovable properties as security.

b)   However, for loans of higher denominations, the State KVIC/ KVIBs require acceptable security through mortgaging of property etc., (created out of the total programme funds meant for a particular project).

Training:

KVIC imparts training through about 46 training centres.  The training would be organised for Ex-Servicemen by concerned ZSB/ RSB in consultation with respective State KVIC/ KVIB. 

BANK LOAN INTEREST SUBSIDY SCHEME (BLISS)

Introduction:

The scheme is called 'Bank Loan Interest Subsidy Scheme' shortly known as BLISS.  Under the scheme 50% of interest payable on loans availed by Ex-Servicemen and their widows from Banks/ Tamil Nadu Industrial Investment Corporation, for remunerative business purpose, other than agriculture purpose, will be reimbursed from Amalgamated Fund maintained by the Directorate of Ex-Servicemen's Welfare

100% Interest Subsidy on loans availed by Self Help Group of Ex-Servicemen and their Widows.

Eligibility:

Ex-Servicemen and their widows.

 Maximum Loan:

No ceiling.  However, reimbursement of interest will be restricted only to a maximum loan amount of Rs.2.50 lakhs.

In the case of Self Help Group formed by Ex-Servicemen and Widows, re-imbursement of interest will be given to a maximum loan of Rs.7.50 lakhs.

Conditions:

a) Applications to avail the concession should be submitted to the Secretary, Amalgamated Fund, Directorate of Ex-Servicemen's Welfare through the concerned District Offices of Ex-Servicemen's Welfare, before availing the loan.

b)  Reimbursement of 50% of scheduled interest will be made only after prompt repayment of principal due and interest charged for the period of claim by the institutions and any excess interest paid due to delay in repayment of loan instalments will not be taken into account for calculating the reimbursable interest.

c)  Should apply in the prescribed format, along with a certificate of prompt repayment of principal and interest by the Banks, once in a quarter, or as per the periodicity of interest applied by the Banks, but not later than 6 months from the last date of scheduled final repayment prescribed by the Bank.

d)  Failure to repay three consecutive loan instalments to the Bank will entail forfeiture of interest subsidy.

SUBSIDY ON INDUSTRIAL SHED

25% on the cost of Industrial Shed / Plot of Ex-Servicemen, subject  to a maximum of Rs.50,000/-, is sanctioned from Amalgamated Fund.

OIL PRODUCT AGENCIES  (DEFENCE CATEGORY)

(Director General Resettlement, New Delhi Letter   No.1512/DGR/SE-2/OIL/General dated:23.6.97)

Eligible Persons:-

(a)   Widows/ Dependants of Posthumous Gallantry Award Winners
(b)   War Widows/ Dependants
(c)   War disabled (with disability 50% and above)
(d)   Widows/ Dependants of those who died in harness due to attributable causes.
(e)   Disabled in peace with disability 50% and above attributable to the Military Service.

Age on the date of application    : Minimum 21 years and Maximum 60   years.  
Educational Qualification            : Matriculation or equivalent
Income                                      : The gross income of the   applicant should  not
                                                   exceed  Rs.2.00 lakhs per annum.

Residency                                 :  Resident of any district in the State  where agency is located

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