Overview

The objective of the scheme is to encourage unemployed person to take up self-employment ventures through industry, service and business, by providing soft loans to meet part of the margin money to avail institutional finance.

Scope of the scheme:

As per Govt. G.R. dated 18 May 2007, the Govt. of Maharashtra has made the following changes in the earlier Seed Money Scheme:

• Projects cost increased from ₹ 10 lakhs to ₹ 25 lakhs for industry, service and business activity
• Seed Money assistance at 15 per cent of the project cost approved by financial institutions is offered. In case of projects up to ₹ 10 lakhs, the quantum of assistance is 20% for SC/ST/OBC/NT/VT/Handicapped
• Seed Money component up to ₹ 3.75 lakhs maximum
• Bank loan 75% of the project cost
• The rate of interest on seed money is 6% per annum and if the borrower repays installment regularly and within schedule time, then the borrower will get rebate of 3% in interest. So he has to pay only 3% interest. Hence for regular repayment interest of 3% per annum
• If the installment is not repaid in time, it will attract 1% penal interest

The repayment of loan starts after three years in four yearly installments. However for vehicle cases repayment starts after six months of loan availment.

Eligibility Criteria

Local unemployed person or group of persons fulfilling:

• Age Group: 18 to 50 years
• Qualification: Std. VII pass
• Domiciled in the state of Maharashtra for the last 15 years

Statistics

The statement showing outlay and expenditure since 2011-12 upto 2014-15 under Revised Seed Money Scheme is as shown below (₹ in Lakhs):