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Get Soft-loan from Maharashtra Govt. to start your own Business There

Originally launched by the central government, New Seed Money Scheme subsequently has been transferred to the State of Maharashtra as State Plan Scheme. The main objective of this scheme is to provide soft loan or seed money to encourage educated unemployed youth to take up self-employment. The soft loan provided helps the youth to meet a part of his margin money required to get institutional finance for his business and the likes. The Scheme is implemented in the entire State.

(Margin money is generally the money which one person borrows to buy securities.)

Assistance pattern:

  • Project cost up to ₹25 lakh for industry, service and business activity.
  • Soft loan assistance is available at 15% of the project cost.
  • For projects costing ₹10 lakh the assistance is available at 15% (for General category) and at 20% (for SC/ST/OBC/Minorities/Women/Differently abled).
  • The maximum soft loan one can avail is of ₹ 3.75 lakh.
  • Banks/financial institutions provide loan at 75% of the project cost.
  • The rate of interest on the soft loan provided to an individual is 6% but if one repays all the installments regularly then the person gets a kind of discount or rebate of 3%. For e.g.- if you avail soft loan of ₹ 1lakh and you repay the loan availed at a regular time, then you have to pay only 3% of the interest rate on ₹1 lakh.
  • But if an individual does not repay the soft loan on time, then 1% extra interest he/she has to give as a penalty.
  • Repayment generally starts after 3 years of getting the loan. And, one has to pay every year and has to repay the amount within 4years (for industries). For the rest sectors, repayment starts after 6 months of availing the loan.


  • Age limit- A person must be between age 18 and 50 years.
  • Educational qualification- must be a standard VII passed out.
  • The applicant must be staying in Maharashtra for at least 15 years.

Nodal Agencies:

  • The General Manager, District Industries Centre for the respective district,
  • The Joint Director of Industries (Mumbai Metropolitan Region) for Greater Mumbai

How to avail?

Application can be filed in prescribed application format to the concerned District Industries Centre or to the Office of the Joint Director of Industries (MMR). Application form is available at the above mentioned offices in free of cost.

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PC: efytimes.com

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One comment

  1. please help me, i want a loan for new buisness, i am handicap, please help me

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