Introduction:
The aim of the scheme is to provide adequate self-employment opportunities to Ex-Servicemen, war widows, Disabled Service Personnel and widows of Ex-Servicemen through promotion and development of Khadi & Village Industries (KVI) in the rural areas.
Eligibility:
a) Ex-Servicemen, widows and disabled Ex-Servicemen are eligible to take up Khadi & Village Industries programmes. There is no age restriction except that the applicant should not be below 21 years of age.
b) The scheme is operative in villages having population of not more than 20,000.
c) An affidavit duly notarised, to the effect that the Ex-Serviceman has not taken any benefit from Zila Sainik Board earlier.
Terms of Assistance:
Ex-Servicemen Co-operative institutions/ registered societies and individuals are given loans by Khadi & Village Industries Commission/ Khadi & Village Industries Board. The loan is also made available under Margin Money Scheme through Banks. In this case, the interest subsidy is born by the KVIC.
Promoter's contribution - 5%
Margin money (Tail end subsidy) - 30%
Term Loan - 65%
Liberalised Pattern of Assistance to Ex-Servicemen:
Ex-Servicemen have been given the status of Special Target Group. Therefore, Liberalised Pattern of Assistance has been made applicable to all the Ex-Servicemen, war widows, widows of Ex-Servicemen and disabled Ex-Servicemen, irrespective of their
income and location of the project. Besides, Ex-Servicemen will also be accorded preferential treatment in the processing, sanctioning and disbursement of loans. This assistance will also be extended to registered institutions/ Co-operative Societies which undertake Village Industries programmes.
a) Land. No financial assistance is provided for land.
b) Promotional Assistance: The KVIC sanction assistance for exhibitions, conferences, seminars and symposia etc. The expenditure on these is sanctioned as 100% grant. The annual schedule of such activities is prepared and informed to KVIC in advance by December end of the year.
Rate of Interest:
a) Interest on loans for Khadi and Polyvastra including Polywool industries advanced by KVIC from its consortium fund is 4% p.a.
b) Loan for all village industries carries a rate of interest of 13% per annum (subject to change).
Repayment Period:
Loan should be repaid in 7 years in equal 28 instalments along with the interest. The first instalment being due at the end of 12th month
Conditions:
a) The borrowing institution is required to execute legal documents, i.e., hypothecation deed and/ or mortgage deed covering movable and immovable properties as security.
b) However, for loans of higher denominations, the State KVIC/ KVIBs require acceptable security through mortgaging of property etc., (created out of the total programme funds meant for a particular project).
Training:
KVIC imparts training through about 46 training centres. The training would be organised for Ex-Servicemen by concerned ZSB/ RSB in consultation with respective State KVIC/ KVIB.
