Scheme for Self – Employment for Educated Unemployed Youths

Delhi Khadi & Village Industries Board

Introduction:

This scheme has been designed to provide self-employment by providing technical and financed help, to the educated unemployed youths by setting up self-employment venture through Industry, service sector and business trades.

Eligibility:

Any unemployed educated person, residing in any part of NCT of Delhi, rural or urban, fulfilling following conditions:

(A) Age:

This scheme is open for all educated unemployed youths between 18-25 years in general, with 5 years relaxation for SC/ST/Ex. Serviceman/ Physically Handicapped and 10 years relaxation for women candidates.

(B) Educational qualification:

Minimum 8^th standard pass and candidates possessing educational qualification up to 12^th standard only, will be considered under this scheme.

(C) Residency:

The applicant should be Permanent resident of NCT of Delhi, for at least last 5 years, from the date of application.

(D) Defaulter:

The applicant should not be defaulter to any nationalized bank/financial institution/cooperative bank. Further, a person insisted under other subsidy linked Govt. scheme would not be eligible under this scheme.

Project Cost:

Project up to Rs. One Lakh are covered under the scheme in case of individual. If two or more eligible persons join together in a partnership, the project with the higher cost would also be covered, provided that the share of each person in the project cost is not more than Rs. One Lakh. In such cases, total project cost may exceed rupees one lakh. The upper ceiling will be rupees five lacs.

Margin Money and Rate of Interest:

Entrepreneur will be required to contribute 10% of project cost as margin money each. Balance 90% would be sanctioned as loan by Government/DKVIB, at the rates of interest as fixed by the Govt. from time to time, and applicable to such loans. At present, the rate of interest is 9.5% P.M.

Loan and Subsidy:

Govt. of Delhi would provide subsidy at the rate of 15% of the project cost, subject to a ceiling of Rs. 7500/- per entrepreneur. In case of more than one entrepreneur joining together and setting up a project under partnership, subsidy component will be calculated for each partner separately, at the rate of 15% of cost of project or Rs. 7500/- whichever is less.

Subsidy component would be adjusted after a period of 2 years from the date of disbursement of loan. The interest would be charged on the total amount, i.e. 90% of project cost, released by the Board up to 2 years or till the realization of grant. In case of misutilization/ non-utilization of funds, the grant/subsidy amount will be adjusted towards the borrowers loan accounts and shall also be recovered along with interest, from the borrower, otherwise this subsidy component adjusted towards loan a/c of borrower after 2 years.

Repayment schedule:

(A)

Repayment schedule would range from 3 year to 7 year, after a maximum initial moratorium period of 06 months. Repayment of loan is to be done by the borrower in monthly installments.

(B)

If a borrower defaults in making payment of three regular monthly installments, he/she will be treated, as defaulter and the whole amount of loan, along with interest shall be recoverable from the borrower and sureties. This amount shall be recoverable as arrears of land revenue. Borrower (s) along with sureties shall be jointly and severally liable to pay the out standing amount.

Marketing Assistance:

The Govt. of Delhi will provide marketing assistance under this scheme, by following arrangements:

1. Displays of products in Delhi Emporium, as per availability of space

2. Allowing such entrepreneurs to participate in trade fares.

3. DSIDC/Cooperative stores can get the products manufactured by the selected entrepreneurs and marketed in their own brand name.

List of activities covered in the scheme:

1. Repair of Radio and T.V.

2. Fashion designing

3. Repair and maintenance of household electrical appliances

4. Refrigeration and Ac

5. Plumbing

6. Paper craft and paper mashie

7. Carpet weaving

8. Footwear and allied Leather goods

9. Computer repairing’

10.Data processing

11. Computer software

12. Any other commercially viable and permissible trade under the provision of Master Plan of Delhi

Loan Security Norms :

Loan amount	Option ‘A’	Option ‘B’
1. Loan amount up to Rs. 1 lakh	Two Sureties: Permanently employed with Govt./Semi-Govt./Public Sector/ under taking, drawing monthly salary of Rs. 5, 000/-	Two sureties: Residents of Delhi, having PAN number and have paid income tax during last two years.
2. Loan more than Rs. 1 Lakh and less than Rs. 2 lakhs	Two Sureties: Permanently employed with Govt./Semi-Govt./Public Sector/ under taking, drawing monthly salary of Rs. 7,000/-	Two sureties: Residents of Delhi having PAN number and have paid income tax more than Rs. 1400/- p.a. during last two years.
3. Loan more than Rs. 2 lakhs and less than Rs. 3 lakhs	Two Sureties: Permanently employed with Govt./Semi-Govt./Public Sector/ under taking, drawing monthly salary of Rs. 8,000/-	Two sureties: Residents of Delhi having PAN number and have paid income tax more than Rs. 2500/- p.a. during last two years
4. Loan more than Rs. 3 lakhs and less than Rs. 5 lakhs	Three Sureties: Permanently employed with Govt./Semi-Govt./Public Sector/ under taking, drawing monthly salary of Rs. 8,000/-	Three Sureties: Residents of Delhi having PAN number and have paid income tax more than Rs. 2500/- p.a. during last two years.

Note :

Borrower can offer sureties as per option ‘A’ or option ‘B’ and also can opt for sureties from both the options, keeping total number of sureties as per prescribed norms.