Nature of facility	Term Laon Working Capital
Purpose	This scheme provides financial assistance to individuals including street venders/hawkers of urban poor for setting up gainful self-employment ventures/ micro-enterprises, suited to their skills, training, aptitude and local conditions. The underemployed and unemployed urban poor will be encouraged to set up small enterprises relating to manufacturing, service and small business for which there is considerable local demand.
Financial Assistance	The financial assistance available to urban poor will be in the form of Interest subsidy on the bank loans. Interest charged by the Bank over and above 7% p.a. will be available as subsidy.
CGTMSE Coverage	Loans to be covered under suitable guarantee coverage for SEP loans as per the eligibility of the activity for guarantee cover
Margin	For loan up to Rs.50,000 – NIL For loan Above Rs.50000- Minimum Margin-5 % Maximum Margin-10 %
Repayment	Repayment schedule ranges for 5 Years inclusive of maximum moratorium of 6 months.

This scheme is under implementation in all district headquarters (irrespective of population) and all the cities with population of 1 lakh or more.

The prospective beneficiary should have attained the age of 18 Years at the time of applying for loan & Borrowers above 70 years of age will not be entertained.
No minimum educational qualification is required for prospective beneficiaries under this component. However, where the identified activity for micro-enterprise development requires some special skills appropriate training must be provided to the beneficiaries before extending financial support.

Rate of interest as per prevailing guidelines of the Bank linked to RLLR of the Bank, subject to changes from time to time.

Penal interest of 0.25%/0.50% may be chargeable as the case may be, from previous sanction to current renewal period, in case of lesser turnover routed through the account.
Agree to pay penal interest at 2% for overdrawn portion, in case of delayed regularization of the limit.