- Prospective micro, small and medium scale entrepreneurs at village level who want to commence new businesses or to expand existing businesses.
- Entrepreneurs with new ideas that use local area resources, IT based products and eco friendly economic activities etc.
- Youth, women, young graduates, skilled and differently abled people.
Project Selection Criteria
- Novelty of business ideas
- Entrepreneurial and technical skills of the loan applicant
- Market demand for the proposed product
- Marketing and packaging strategies
- Potential for Employment generation
- Appropriateness of technology
- Technical and financial feasibility of the project
- Environmentel Impact
- Strength of the business plan
- All businesses that can potantially generate revenue in the Agriculture, Industrial and Service sectors are eligible. The projects/businesses indicated below will be given preference.
Loan Amount and Interest Rate
The loan scheme is designed for startups, under which a maximum loan amount of Rs. 200,000/- will be given at a nominal interest rate of 5.5%. In addition, a maximum grant of Rs. 50,000/- will be given to meet initial expenses of the startup business. Existing businesses will receive a maximum loan ofRs. 250,000/- at an interest rate of 5.5%.
Criteria for providing the second portion of the grant
In order to be eligible Rs. 40,000 which is for the second part of the grant, the newly established enterprises should meet a minimum of one of the following criteria:
- Turnover growth of at least 20% per annum
- Must create at least one additional employment opportunity
- Achieving 80% of the targets of the business plan set for the first 6 months
The eligible entrepreneur needs to apply for the second part of the grant through the Small Enterprises Development Division (SED) of MNP&EA or from the relevant PFI, after achieving at least one of the above targets.
SED of the MNP&EA will assess the compliance of the applications received by the SED and submit the applications to the PFI with recommendations.
Additional loans can be obtained from the respective participating bank based on the success of the business, at a moderate interest rate.