Personal Interest Subsidy Scheme

Personal Interest Subsidy Scheme helps rural entrepreneurs in Uttarakhand set up industries using local resources by providing an interest subsidy on bank-financed projects of up to ₹5,00,000.

Uttarakhand State Khadi and Village Industries Board launched this scheme in 2016 to make business financing easier for village entrepreneurs. The scheme is still open for eligible applicants under the district plan of the state government.

Personal Interest Subsidy Scheme - Introduction

Personal Interest Subsidy Scheme supports rural entrepreneurs in setting up sustainable industries that use local raw materials. The scheme is managed by the Uttarakhand State Khadi and Village Industries Board under the district plan of the Government of Uttarakhand.

If you have a workable business idea, this scheme helps you get project funding of up to ₹5,00,000 from a bank. As an entrepreneur you only need to pay 4% interest on the bank loan, while the department covers the remaining interest cost up to a maximum of 10%. District Village Industries Offices across the state look after the rollout so that support reaches local innovators in every district.

Key Information

Benefits

This scheme gives clear financial relief for your business venture:

1. Bank Financing: You can get project funding up to a maximum cost of ₹5,00,000.
2. Reduced Interest Burden: You only need to pay a nominal 4% interest on the bank-financed amount.
3. Government Support: The department takes care of the remaining interest liability, covering up to a maximum of 10%.

Eligibility

To apply for the Personal Interest Subsidy Scheme, you should meet these criteria:

1. You should be between 18 and 45 years of age.
2. You must be a permanent resident of Uttarakhand.
3. You should be an educated unemployed youth who has crossed the age limit for government service, or you should be trained by an ITI or Polytechnic.
4. Women interested in self-employment are encouraged to apply.
5. You should have passed Vocational Education (10+2 level) with Village Industries as a subject.
6. You must establish and run the project in a rural area.

Exclusions

To keep industry standards, the project should not involve these categories:

1. Meat production or trade
2. Intoxicating substances
3. Khadi or poly-based products
4. Animal husbandry
5. Horticulture
6. Any industry harmful to the environment

Application Process

Follow these steps to apply for the scheme:

STEP 1 - Visit the official website of the Uttarakhand State Khadi and Village Industries Board.

STEP 2 - Navigate to the Schemes menu and select Personal Interest Subsidy Scheme.

STEP 3 - Download the required Application Form and Claim Form from the portal.

STEP 4 - Fill in your details carefully, attach the required documents, and submit the complete package to your nearest District Village Industries Office.

Documents

Keep these documents ready for your application:

1. Passport size photograph
2. Permanent Residence Certificate
3. Photo identity proof
4. Valid address proof
5. Caste certificate (if applicable)
6. Comprehensive project report
7. Certificate issued by the village head (as per the prescribed format)
8. Consent letter from your bank branch
9. Educational or technical qualification certificates
10. Affidavit on a ₹20 non-judicial stamp paper

References

Official Guidelines and Updates

FAQ's

What is the name of the scheme that provides interest subsidy for rural entrepreneurs in Uttarakhand?

The scheme is known as the Personal Interest Subsidy Scheme and is operated under the district plan by the Government of Uttarakhand.

What is the primary objective of this scheme?

This scheme helps rural entrepreneurs set up industries based on local raw materials by making bank financing more affordable.

Who manages this scheme at the local level?

The District Village Industries Offices under the Uttarakhand State Khadi and Village Industries Board handle the implementation.

What is the maximum project cost covered?

The scheme supports bank-financed projects of up to ₹5,00,000.

How is the interest payment split?

As the entrepreneur, you pay 4% interest, while the government covers the remaining interest up to a maximum of 10%.

Who is eligible to apply for this?

Applicants must be Uttarakhand residents aged 18 to 45 who meet specific educational or vocational training criteria.

Where should the application be submitted?

Submit the completed application form directly to the District Village Industries Office in your specific district.