RGSRY: a Delhi Govt. Loan Scheme for entrepreneurs

In a bid to provide employment opportunities to the unemployed youth, artisans, entrepreneurs, trained professionals and skilled technocrats, the Delhi Khadi & Village Industries Board (DKVI Board) of the Delhi government developed and sponsored Rajiv Gandhi Swavlamban Rozgar Yojna. Main aim of this scheme is to promote and expand permissible industries, professions, tertiary and service sector in Delhi.

 Loan Assistance:

• Maximum loan under this scheme is ₹ 3 Lakh.
• The beneficiary has to contribute 10% for General category and 5% for SC/ST/ OBC/Ph. H. /Women/Ex. Servicemen.

Subsidy:

• The Delhi government provides 15% subsidy on the project cost with a maximum amount of ₹ 7,500/- per entrepreneur/individual. In case of a partnership firm, the subsidy is calculated separately for all the entrepreneurs involved.
• Subsidy is generally adjusted to the beneficiary’s loan after a period of 2 years (from the date of getting loan).
• Subsidy amount can be recovered from the entrepreneur along with 18% penalty interest if it is found that the loan amount has not been properly utilized by the entrepreneur.

Eligibility criteria:

• Anybody above the age of 18 years.
• Individual entrepreneur/trade professionals/artisans are eligible.
• Small-scale industries (SSIs) those have total investment of plant, machinery and equipment and those located in National Capital Territory of Delhi are also eligible.
• Candidates passed out from any technical/professional institute recognized by the government or govt. undertakings but do not have further trainings are also eligible.

However, units or individuals already benefitting from other schemes of government or government controlled financial institutions and those who have not repaid loans with full interest are not eligible to get loan under this scheme.

Rate of interest:

Rate of interest is subjected to change. The present rate is 10% per annum. No interest subsidy.

Duration:

• An entrepreneur has to repay the loan amount within 5 years of acquiring loan in quarterly installments.
• Repayment generally starts after 1 year of acquiring loan.
• Repayment of the interest acquired on loan starts after 3 months of getting loan.

How to avail?

Application is dealt on a First come first serve basis.

Application on the prescribed format can be submitted to the DKVI Board. Visit the website for more details on applying for the scheme.

An application Form has been attached here.