Phase 1: Project Cost:

The project cost for the first phase can be a maximum of Rs.10.00 lakhs.

Margin Money for the Project cost upto Rs.5.00 Lakhs: Beneficiaries from the general category will have to contribute 15% of the project cost, those from the Other Backward Classes (OBC) will contribute 12.50%, and beneficiaries from the Scheduled Castes/Scheduled Tribes/Persons with Disabilities will contribute 10% of the project cost as their own contribution.

Additionally, beneficiaries/applicants from economically backward geographical areas in the state (Bundelkhand and Purvanchal regions) and aspirational districts declared by the Government of India (such as Chitrakoot, Chandauli, Sonbhadra, Fatehpur, Balrampur, Siddharthnagar, Shravasti, Bahraich) will also have to contribute 10% of the project cost as their own contribution.

This contribution will be front-ended.

Phase 1: Margin Money on additional TL/WC for units with Project cost above Rs.5.00 Lakhs shall be as per extant guidelines of the Bank.

Phase 2: Project Cost:

The project cost for the second phase (expansion) can be a maximum of Rs.20.00 lakhs.

Under the scheme such projects which are under the negative list shall not be allowed for any loan/Credit.

• Tobacco Products
• Alcohol, Fizzy Drinks
• Manufacture of Fire Crackers
• Plastic carry bags (Less than 40 micron) or plastic bags of such thickness as classified in the prohibited category by GOI/state from time to time.
• The purchase of land and buildings will not be included in the project
• Any other products classified in the prohibited category list from time to time.

• The applicant must be a resident of Uttar Pradesh.
• The applicant’s age should be between 21 and 40 years.
• The applicant’s educational qualification should be at least class eight pass. Preference will be given to those who have passed Intermediate or equivalent.
• The applicant should be trained under government-operated training schemes such as the Vishwakarma Shram Samman Yojana, One District One Product Training and Toolkit Scheme, Scheduled Caste/Tribe/Other Backward Class Training Scheme, Skill Enhancement programs conducted by the Uttar Pradesh Skill Development Mission, or should have obtained a skill-related certificate course/diploma/degree from a recognized school/educational institution.
• The applicant should not have availed any interest or capital subsidy benefit from any other scheme operated by the State or Central Government, except for the PM Svanidhi scheme (as per scheme guidelines applicant shall submit suitable notarized affidavit in this regard).

Additional Guidelines for Phase 2:

• Beneficiaries who repay the principal amount along with penal charges (if any) within a period of 4 years will be eligible for second phase financing under the scheme.
• Beneficiaries of the first stage financing who have defaulted on loan repayment will be considered ineligible for second phase financing.

• Till further communication in this regard.

• Customer Identification proof along with NF998 MSME application.
• Address Proof of unit and promoters.
• License/permissions.
• Financial papers for the last 3 years with ITR and projections.
• Details of Guarantor with proof of assets.
• Stock Statement.

For Phase 1:

• For loans/WC with maximum Project cost up to Rs.5.00 Lakhs
• Maximum up to 10% (RLLR 9.25% +0.75% p.a.) at present (as per scheme guidelines).
• ROI on additional loans/WC for Units with Project cost above Rs.5.00 Lakhs to Rs.10.00 Lakhs under Phase 1

• 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.
• Udyam Registration Certificate is mandatory.
• he state government will also bear the necessary amount for CGTMSE coverage under phase 1 & 2 as detailed in the scheme guidelines. If the beneficiary has availed CGTMSE coverage on any loan from their own sources from a financial institution/bank, there will be no restriction on providing the loan and CGTMSE coverage under the proposed scheme.
• Lucknow Circle, being SLBC member, to act as Nodal point for dealing with matters related to Margin Money Subsidy, Interest Subsidy and CGTMSE fees reimbursement for all Branches in the State of Uttar Pradesh including for the Branches falling under Delhi & Agra Circle.
• Circle/s to ensure that SOP of the scheme is followed for claiming various reimbursement like margin money subsidy, interest subsidy and CGTMSE fees reimbursement in all the eligible loan accounts sanctioned under the proposed scheme.
• Nodal Office/Circles to ensure that all claims under the scheme are made promptly without any delay on regular basis as per extant SOP of the scheme.
• Branches/Unit may open Term Loan/Working Capital accounts as per SOP of the scheme for separate monitoring purpose of the loan amount directly eligible for Interest subsidy, Margin money subsidy, CGTMSE Fees claim.
• Nodal Office/Circle to ensure that ROI in Phase 1 & Phase 2 should not be lower than scheme SOP in any case.