Scheme Name: Seed Money Scheme (SMS)

State: Maharashtra

Description of the Scheme: SMS provides soft loans to unemployed individuals so that they can share the expenses and have an excellent start to their business. The repayment policies are very affordable and does not become a burden for them at the time of repayment.

Target group :

Sector of the Scheme:

Eligibility Criteria:

• The individual has to be between 18 to 50 years of age.
• The individual should have passed Standard VIII.
• The individual has to be citizens of the state for at least 15 years.

Nature & Mode of Assistance:

• The scheme grants funds for a project that costs up to Rs. 25 lakhs for industry, service and business activity.
• Seed Money grants 15 per cent of assistance for project cost that is approved by financial institutions. Those projects that are costing up to Rs. 10 lakhs, the quantum of assistance ranges up to 15 per cent for General category and 20% for SC/ ST and NT/ OBC/ VT/ handicapped upto 20 per cent.
• A seed money component up to Rs. 3.75 lakhs is provided by the scheme.
• Through this scheme, a bank loan of 75% of the project cost is offered.
• The rate of interest on seed money is 6%, and if the borrower pays the repayment at regular intervals within the scheduled time, then the borrower gets a rebate of 3% in interest. Therefore, he has to pay only 3% interest.
• If the instalment is not repaid in time, it attracts 1% penal interest.
• The repayment of the loan begins after three years in four yearly instalments for industry cases. In other cases, repayment begins only after six months availing the loan.

"Financial Information (Subsidy, low interest rate, etc.)":

"Other Assistance (Procurement of machinery, Technology /Marketing, International Cooperation, etc.)":

How to apply:

Whom to Contact: