Bank tie-up schemes:

Eligibility Criteria

The following is the eligibility criteria for obtaining loans under Bank tie–up schemes:

1. One should be permanent Resident of J&K State
2. One should be a member of SC,ST & BC Communities (click to see the detail)
3. One should have the family income below the Poverty Line (BPL), i.e. Rs.19750/= p.a. for Rural and Rs.27270/= p.a. for Urban areas (which is notified by the Planning Commission, Govt. of India).
4. One Should not be a defaulter of any financial institution.
5. One should not have already availed the benefit of subsidy.
6. One should having necessary skill/ experience in the activity/ trade applied for.

Procedures

This is a continuous scheme of the Corporation open for the whole year. In each District, under the Lead Bank Scheme, targets under Annual Credit Plan are fixed with the approval of District Consultative Committee headed by the concerned District Dev. Commissioner and an allocation of targets/ funds is kept under the credit plan for the beneficiary of the corporation.

Any eligible person desirous of establishing a feasible project have to apply to the District Manager of the corporation in the prescribed form available (free of cost) in each district office of the Corporation. The Corporation field staff conducts survey to determine suitability/ feasibility of the proposed activity and genuineness of the beneficiary. The case deemed fit is sponsored to the concerned bank operating in the area for sanction of loan. The concerned bank after pre-sanction survey sanctions the loan component and intimates to the corporation through its Distt. Manager/s regarding release of subsidy.

On receipt of sanction from the bank the corporation releases subsidy component to the bank concerned. The income generating asset is handed over to the beneficiary in presence of a committee comprising of the Bank Manager, District Manager of the Corp. representative of insurance company and the concerned Veterinary Asstt. Surgeon (in case involving animals). District Manager of the Corporation is fully empowered to monitor the running of all units so established.

Direct Financing Schemes

Eligibility Criteria

Under Direct Financing Schemes the corporation provides loan assistance to the people of the target group in collaboration with National level Corporations. The eligibilities of the beneficiary to avail the loan under Direct Financing Schemes are as under:

1. One should be permanent resident of the J&K State.
2. One should belong to SC,ST, BC, Notified National Minorities, Safai Karamcharis/ Scavengers and Physical/Mental disabled. ( For details Click here)
3. One should have the family income below Double the Poverty Line ( DPL), i.e. Rs 40000/= p.a. for Rural and Rs. 55000/= p.a. for Urban areas (which is notified by the Planning Commission, Govt. of India).
4. One should having necessary skill/ experience in the activity/ trade applied for.
5. The applicant who intends to avail loan for purchase of vehicle should have valid driving license for the type of vehicle applied for.
6. One Should not be a defaulter of any bank/ financial institution.

Procedures

The Corporation issues advertisements for seeking applications containing all terms and conditions, in local print and/ or electronic media invariably as soon as a particular scheme/ project of financing is approved by the national level financing corporation (under Direct Financing Schemes).

On receipt of application a district level selection committee scrutinizes the documents furnished by the applicant and conducts interview of the prospective beneficiary. Therefore the selection is made keeping in view the genuineness of the applicant and feasibility of the activity in a particular area/ district. The date of interviews are notified to the applicants well in advance on their personal addresses. Therafter the corporation issues sanction orders and asks the selected beneficiary to complete the legal formalities in a reasonable time. As soon as the documents are completed and the contribution is deposited by the beneficiary, the asset is handed-over to the beneficiary (as per the choice of the beneficiary) duly insured and the payment is released to the seller/ dealer. The beneficiary is to redeem the loan amount in 54 equated installments reckoning to one month from the date of establishment of the unit. And incase of MSY/ MCF/ AMSY the repayment period is 36 months.