This story is from August 10, 2020

Loan process made easy for budding entrepreneurs

Loan process made easy for budding entrepreneurs
Coimbatore: The District Industries Centre (DIC), which facilitates loans for aspiring entrepreneurs under loan subsidy schemes such as the New Entrepreneur-cum-Enterprise Development Scheme (Needs), Unemployed Youth Employment Generation Programme (UYEGP) and the Prime Minister’s Employment Generation Programme (PMEGP), said the schemes will not involve the mandatory interviews or training this year due to the Covid-19 pandemic and lockdown.

Applications for the schemes are slow to come in, DIC general manager B Karthigaivasan said. “As banks have a limited number of staff members and as they can’t conduct personal interviews and inspections, the process of uploading the applications is slow,” he said.
This year, DIC has a target to disburse subsidies up to 185 lakh for UYEGP to start businesses with a total investment of Rs 740 lakh. The scheme is for unemployed youth to start manufacturing units at an investment of Rs 10 lakh or service or trading units at an investment of Rs 5 lakh. The beneficiaries must put in 5% of the total project cost and the state will provide 25% of the cost, up to Rs 1.25 lakh.
Subsidy target of Rs 490 lakh has been set for the Needs scheme in the district. Beneficiaries can start manufacturing or service businesses with an investment of Rs 10 lakh to Rs 5 crore.
Under the PMEGP scheme, general beneficiaries will be given 25% and 15% loan subsidies for starting businesses in rural and urban areas respectively. Special category beneficiaries will get 35% and 25% subsidies respectively. Doing away with the interview and training might prompt more aspiring entrepreneurs to make use of the schemes, industrialists here said.
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