Seed Capital Fund Scheme "Sher-e –Kashmir Employment and Welfare Programme for the Youth (SKEWPY)"

To provide finance to eligible candidates sponsored by JKEDI under the Seed Capital Fund Scheme of Government of Jammu & Kashmir.

Finance under this product shall be available to trained and registered first generation entrepreneurs sponsored by the JKEDI under the Seed Capital Scheme to start environment-friendly ventures relating to certain core areas of the state economy which inter-alia shall include:-

i) Cultivation of horticulture, floriculture, cultivation of medicinal and aromatic plants;
ii) Food-processing at the household/village level;
iii) Establishment of facilities for storage of food products/horticulture products: particularly cold chains;
iv) Handloom, handicrafts and other artisanal products: particularly design improvement, technology-transfer and marketing;
v) Ventures in Poultry, Sheep-breeding and production, mushroom cultivation, bee keeping, Dairy farming, aimed at import substitution;
vi) Setting up of computer literacy/training institutes in villages/habitations particularly with a population of less than 3000 souls;
vii) Setting up of Fair Price Shops at small habitations across the State;  
viii) Health services unit/dental care units set up by doctors;
ix) Pathological labs including diagnostic facilities set up by doctors/trained professionals;
x). Services industry units engaged in maintenance ,repairing, testing of both electrical and electronic equipments/ instruments, services of all types of vehicles and machinery including TV’s, Radio’s, transformers, motors, etc. set up by technically qualified persons such as Engineers or trained entrepreneurs;
xi) Servicing and supply of components/parts of agricultural farm equipments/machinery items such as tractors, pumps, boring machines ,etc., set up by Engineers or technically trained entrepreneurs.
xii) Tailoring and boutique units set up by educated and trained entrepreneurs;
xiii) Tourism-related enterprises covering houseboat owners, setting up of Paying Guest facilities, small dhabas and restaurants with a capacity of 20 seats.
xiv) All the above activities as approved by JKEDI or any other economically viable activity as may be approved by JKEDI;  

In addition to the above mentioned activities following activities have been included . 
1. Wholesale Distribution of Medicines, food items, ice-creams with specific upper limit cap.
2. Sub-dealership activities like selling of automobiles /electronic items/mobile phones /branded clothes/cement/iron/building material.
3. Activities with working Capital of more than 20 lacs (twenty lacs only) as per requirement.
4. Pre-booking of tickets in bulk in tours and travels activities. 
5. Import Export activities.
6. Software Development activities.
7. E-Commerce and Franchise activities.

• Priority Sector Advance.

• The following shall be eligible under the Scheme:- 
  
  (a) A state subject in the age group of 18 to 40 years for a person having a minimum qualification of 10+2 or above and who is unemployed. 
  (b) Upper age limit for specially /differently abled persons (Persons suffering from not less than 40% of disability, as certified by competent medical authority) has been relaxed from 40 years to 42 years. 
  (c)No institution, corporate body society or an NGO shall be eligible for any assistance under such scheme. 
  (d)There will be no income ceiling for coverage under the scheme. 
  
  (e)The beneficiaries must be registered with the concerned District Employment and Counseling Centre. They can also be registered with other departments and institutions like DICs etc. wherever required so as to take advantage of the benefits which may accrue through such registrations. The JKEDI shall facilitate this during the course of training under entrepreneurship Development Programme. 
  (f)Any person or any existing units and the units which have already availed any incentive or subsidy under any scheme of the Government of India or the State Government shall not be eligible for assistance under the scheme;

SEED CAPITAL: 

Seed Capital for different categories of borrowers shall be as under:

1.Under graduates:-35% of the project cost subject to maximum of Rs 4.00 lacs  
2.Graduates:- 35% of the project cost subject to maximum of Rs 5.00 lacs.
3. Post –Graduates:-35% 0f the project cost subject to maximum of Rs 6.50 lacs.  
3. Technically qualified Persons:-35% of the project cost subject to the maximum of Rs 10.00 lacs.   However for Group initiatives the upper limit shall be relaxable up to sum-total of individual entitlements. Screening Committee shall accept Joint Ventures for three persons, however in exceptional cases joint venture up to 5 persons may be considered.   Technically Qualified persons may include:
a) All Five & Four Years Bachelors Degree Courses. viz. MBBS, BDS, BVSC & AH , BAMS, BUMS, BE, B. Tech,  B. Sc Agriculture,  B. Sc  Forestry, LLB (Including LLB done at University Level after Graduation) etc. approved by concerned regulatory Body(s).
b). Computer Science & Technology Post Graduates MCA/M.Tech, MBA from a recognized University/Institute.
c).All Two Years Master Degree Courses that are declared as professional Degrees by Kashmir/Jammu Universities.
d.)All such Degrees that are awarded by other Universities and the holders whereof claim to possess professional degrees, shall be referred to respective Universities for clarification. However, in case of all professional/technical degree holders, except M.B.A. degree holders the seed capital shall be available only if their proposed enterprise(s) is/are related to their qualifications, otherwise they shall be treated at par with other graduates or post-graduates as the case may be.

M.B.A. degrees may be taken as professional irrespective of the sectors/activities chosen by them entitled to maximum Seed Capital of 10.00 Lacs.

1. BANK LOAN:
   65% of the project Cost. In cases where the bank finance is secured by CGTMSE Cover, the maximum ceiling on Bank Finance shall be Rs 25 lacs. However, if the loan amount is secured by collateral security of immovable property, the maximum ceiling on Bank Finance shall be Rs 65 lacs.
2. Borrowers Contribution:
   Normally, the borrower shall not be required to contribute any margin money. However, in cases, where the project outlay exceeds the Seed Capital requirement and the Bank Loan, the entrepreneur/s shall induct the deficit amount from his own sources
3. Interest during moratorium: 
   Interest during moratorium shall be capitalized and shall form part of the total project cost.
4.  Project cost comprises of Capital Cost as well as the entire working capital requirement.
    

Maximum of 2 years.

The maximum repayment period for different categories of borrowers shall be as under:
 
  Individual Undergraduates                          5 Years
  Graduates/Post Graduates                         6 Years
  Group                                                       7 Years
 
The repayment period shall be exclusive of the applicable moratorium period. For categories where sophisticated equipment is needed, the repayment period shall be 8 years after the applicable moratorium period.

      Primary Security:

• Hypothecation of all Stocks to be purchased afresh/ Equipment / fixed assets/Book-Debts / receivables & all assets created Out of bank finance.   
• Registered Rent Deed / Lease Deed / and or mortgage of lease hold rights, whichever is applicable on case to case basis.

Collateral Security:

• FOR MSE (MSME SECTOR)

• Up to 10 Lacs :  No Collateral security for priority sector lending.
• 10-25 Lacs:        Third party guarantee of  two  Persons with sufficient means    OR

        
                                          Mortgage of   unencumbered immovable property having value not less than 75%   of Loan amount.

• However if available, Guarantee cover under Credit Guarantee Scheme of CGTMSE can be availed by the borrower. In that case premium is to be paid by the borrower.
• 25-50 Lacs:        3rd Party guarantee of 2 persons  AND Mortgage of unencumbered immovable property having value not less than 50% of   Loan amount

OR
Only Mortgage of unencumbered immovable property having value not less than 100% of Loan amount.

• However on case to case basis the CGTMSE cover can be extended for bank subjects to the approval of President A&AP Division, CHQ.  In that case premium is to be paid by the borrower
• 50 Lacs and Above: Mortgage of unencumbered immovable property having value not less than 100% of Loan amount
• However on case to case basis the CGTMSE cover can be extended for bank finances subjects to the approval of President A&AP Division, CHQ.  In that case premium is to be paid by the borrower

(B) Agriculture Allied Activities:

• Comprehensive insurance of assets created out of Bank finance with the usual bank Clause.

Nil

Current 3 Year MCLR + 0.50% (Fixed)

Click here for rate of Interest

        Finance including seed capital and margin, if any, shall be disbursed to borrowers in the manner as phased out in DPR in the  ratio of 65:35  (65% Bank Finance and 35% Seed Capital).
Disbursement of Bank Loan shall be subject to receipt of full Seed Capital and promoter’s contribution (where ever applicable) which shall be kept in a linked current account to be opened in the name of the borrower.
Finance including seed capital and margin, if any, shall be disbursed to borrowers in the manner as phased out in DPR.
Working Capital component of the Project cost shall be made available as a running facility (Cash Credit).
Finance for acquiring of Technology /machinery, etc shall be made directly to suppliers of goods.
Amount earmarked for interest to be released as applicable for servicing of interest during moratorium.