The Swarnajayanti Gram Swarojgar Yojna 

In the rural areas of India, SGSY was introduced on April 1, 1999. This scheme is implemented through commercial banks which are funded by the state and center in a ratio of 75:25.

DRDA is the agency, District Rural Development Agencies, which are responsible to provide funds to that Self-Help Group (SHGs) that have been in existence for 6 months orore & have demonstrated the potential of a viable group. This fund is also known as a Revolving Fund.

In case a loan is given to a group, the whole group would be entitled to receive a subsidy of half of the project cost. Project costs will be including bank loans & government security. This subsidy will be subject to the maximum of Rs.10000 or Rs.125000 whichever is less.

Applications received under the SGSY scheme are required to be disposed of within 15 days at any rate. Although the maximum period that can be allowed to dispose of the applications cannot be more than one month.


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Group Insurance Scheme: Swarojgaris is a scheme that falls under the category of the group insurance scheme. The maximum age of Swarojgaris to whom it can be allotted is 60 years of age. The coverage of insurance will either be 5 years or till the loan amount is repaid.

Security: As per the scheme, primary security would be required to be hypothecated with the bank for loans up to Rs. 50,000 & for group loans Rs.500,000.00.

In case that security is in the form of an immovable asset such as a dug-well, or minor irrigation, the mortgage is created. 

And in cases where both are not possible, guarantees from third parties are required to be obtained. 

One has to remember that for any type of loan whether individual loans or group loans, in addition to the security (hypothecation, mortgage, third party guarantee, another form of security that could be insurance policy) marketable shares or securities or deeds of property, can also be obtained at the bank’s discretion.

Subsidy: Subsidy under the mentioned scheme will be 30% of the project cost which will be subject to a maximum of Rs 7,500.00

In respect of SC/STs, Subsidies under the SGSY scheme will be provided for 50% of the cost of the project but subject to a maximum of Rs 10,000.00 (per capita) or Rs 1.25 lacs whichever will be less.

Banks are not allowed to charge interest on the subsidy portion that will be received on the loan amount.

All SGSY loans are medium-term loans with a minimum repayment period of 5 years (maximum of 9 years).

The Swarna Jayanti Shahari Rozgar Yojna, SJSRY, In April 1997, this scheme was launched in all the urban towns all over India. This scheme, like SGSY, is funded by both center and state in the ratio of 75:25 for the benefit of urban unemployed as well as employed Indian youth.

To get the benefit of the scheme, the Indian youth’s family income must fall below the line of poverty and must have gotten his/her education up to the 9th standard. 

In the case of individuals, the prescribed project cost is up to Rs. 50000.00 under the SJSRY scheme while this project cost gets higher given that the share of each person involved in the bi project is Rs. 50000 or less.

Rate of Subsidy: Subsidy at the rate of 3 percent of the cost of the project is provided under the scheme. It is subject to a maximum of Rs.7500 per head. The margin money required under the SJSRY scheme is 5%.

The repayment schedule of the loans given under the SJSRY chemo images is from three to seven years. A moratorium period is also provided at the discretion of the bank which can range from 6 to 18 months.




Priority Sector Advances: 

Loans that are granted under the SJSRY scheme fall in the category of priority sector advances and therefore it is a Choir daddy loan application received under the scheme up to the amount of Rs. 25000 are required to be disposed of within 14 days and applications for Woods credit limits are more than Rs. 25000 are required to be disposed of within 8 to 9 weeks. 

No Collateral Security or third-party guarantee is not required if the loan amount is Rs. 50000 and in the case of group loans up to Rs. 300000.00 

Other than the margin money, the borrower is also required to provide hypothecation or pledge to the bank.

Development of Women and Children in Urban Areas, DWCUA

Provided that the group consists of at least 10 urban women who are poor, the subsidy that would be provided under him will be 50% of the project cost or Rs. 125000, whichever is less. 

In case the project cost is greater than Rs.250000, the component of the bank would be the project cost after deducting the subsidy (Rs. 125000) and margin money of 5% of the cost of the project. 

Identification of beneficiaries of the scheme: The persons who can benefit from the scheme will be identified on the basis of their monthly per capita income and not on the basis of annual family income.

One requirement under the scheme is that the percentage of women should not be less than 30% of the group. 


Benefit of PMRY (Eligibility): The PMRY scheme is for the benefit of unemployed youth whose age ranges between 18-35 years. 10 years of relaxation also given in case of women/PH/SC/ST provided they have passed 8th standard.

The unemployed youth, who are educated, have the annual family income < Rs.100000 p.a. and the beneficiary is required to be the permanent resident of the district for a minimum of 3 years.

In case of self help groups, the subsidy that will be given to one beneficiary is Rs. 12500 but the maximum is Rs.125000.00.


Margin Money: The margin money varies from 5-12.5% of cost of the project under the PMRY scheme so that it is equal to 20% of the cost of the project.

The Project Cost: The cost of the project in case of PMRY scheme is restricted to Rs 200000 for business sector and Rs 500000 for industrial sector.

Margin money: Requirement of margin in case of projects which are to be approved under PMRY scheme ranges from 5 to 16.2% except in the state of Himachal Pradesh, Jammu and Kashmir, Uttaranchal where it ranges from 5 to 12.5% of the cost of the project so as to make the total of subsidy and margin money equal to 20 % of the project cost.

Exemption is also provided to Rs.100000 per person basis if it is a case of partnership in PMRY Scheme. The exemption amount is Rs 500000 per borrower in the industry sector whereas its Rs 100000 per member in case of services & industry sector.

The eligibility of subsidy is 15% of the cost of the project provided the maximum benefit that one single borrower can take is Rs.12500 in states other than Himachal Pradesh, Jammu and Kashmir and Uttaranchal.

The repayment period is 3-7 years after the period of moratorium. 

It is required that in case of joint ventures of partnerships, the cost of the project should not exceed Rs. 10 lacs. 

Although the number of unemployed youths in case of Self-Help Groups can be 5-20, still there is no upper ceiling on the loans.


Scheme of Liberation and Rehabilitation of Scavengers, SLRS 

The scheme was launched in 1992 for the projects whose cost was upto Rs. 50000. Under the stream it was decided that banks will provide Rs.32500 and the rest of the money will constitute a subsidy amounting Rs. 10000 and Rs. 7500 will be margin money requirement from SCDC (Scheduled Caste Development Corporations). 

The maximum rate of margin one can be 15% and the rate of interest 4%.

Subsidy: A limit in the form of ceiling has been imposed i.e. 50% of the cost of the project and subject to a maximum of Rs.10000.

Requirement of security: Securities to the loans under SLRS Scheme is required to be in the form of hypothecation of assets. 

The repayment of the loan ranges from 3 to 7 years. 

Disposal of Loans under SLRS: It has been prescribed that loan which amounts upto Rs. 25000 are required to be disposed off in 14 days (fortnight) and the loans amounting more than Rs. 25000 in 8 to 9 weeks.

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