Rural Employment Generation Programe

Here is an attractive scheme for those who want to start a village/cottage industry or establish a service sector unit in a village under food & Agro based sector, polymers and chemicals, engineering and non-conventional energy, forest based activities, mineral based units etc.

Individuals, Trusts, co-operatives and institutions can have projects with investments upto Rs.25 lakh. The population of the area where the unit is located should not exceed 20000.

Borrowers have to contribute own funds of at least 10% of the project cost. In case of weaker section beneficiaries viz., SCs / STs / OBCs / Women / Minority / Physically Handicapped / Ex-servicemen, Margin requirement is 5% of project cost.

Bank loan will be 90% of project cost in general and 95% in case of weaker section beneficiaries.

KVIC will provide margin money subsidy at 25% of project cost (30% in case of weaker sections). For projects with investment between Rs.10 lakh and Rs.25 lakh, margin money subsidy will be 25% of Rs.10 lakh plus 10% of remaining portion of project cost.

Margin money subsidy can be adjusted to loan after 2 years of satisfactory conduct of activity and the regularity.

For loan upto Rs.25,000/- hypothecation of assets and for loans above Rs.25,000/-, in addition to hypothecation of assets, collateral security of adequate value will be required.

Interest rate will be as prescribed by the Bank from time to time.

For more details contact our nearest branch.