Commerce and Industry

Seed Money Scheme (SMS)

Seed Money Scheme (SMS) is the scheme which is a part of Prime Minister’s Employment Generation Programme (PMEGP). The scheme is active in Maharashtra State where under the scheme unemployed youths are motivated to take up a self-employment as their earning source. SMS provides soft loans to these unemployed individual so that they can share the expenses and have a good start to their business. The repayment policies are also very affordable which does not become a burden on them. The main administrating body is same as it is in PMEGP and the scheme for both worlds rural as well as urban.

Benefits of Seed Money Scheme:

  • Project cost of Rs. 25 lakhs covered: Projects which fall under business, service and industry are covered under the scheme
  • 15% assistance of total project cost: For open category the 15% of total project expense is given by govt.
  • 20% for reserved category: Categories having reservations like SC/ST/OBC/VJNT/SBC/Physically Disabled are given 20% of assistance
  • Bank loan of 75% of total project cost: Loan of 75% of total project cost is given by banks
  • Very low rate of interest: There is a rate of interest of 6% on seed money and if the loan repayment is done in time and regularly the rate comes down at 3%
  • 3 years of moratorium period: The loan repayment installments starts after 3 years

Eligibility for Seed Money Scheme:

  1. Person must be unemployed
  2. Age group should be 18-50 years
  3. Must be minimum qualification Std VIII pass
  4. Maharashtra State resident

Documents required for the scheme:

  1. Caste Certificate
  2. Educational marksheets and degree (min Std VIII pass)
  3. Birth Certificate
  4. Bank passbook
  5. Domicile in the state of Maharashtra for the last 15 years

Application form:

Since the programme is implemented at ground level after complete survey by KVIC and other organizations, application form are also available with these bodies

Whom to contact where to contact for more information about the scheme:

  1. Nationalize banks
  2. Khadi and Village Industries Commission
  3. Khadi and Village Industries Boards
  4. District Industries Centers
  5. Gram Panchayat
  6. Nagar Palikas
  7. Charitable trust active in your area

References and Details:

Complete detail: http://www.doingbusinessinmaharashtra.org/DIC_schemes.aspx

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