“Rajiv Gandhi Swavlamban Rojgar Yojna” has been designed, developed, and promoted by the Delhi Khadi & Village Industries Board, with the support of the Government of NCT of Delhi. The scheme aims to create employment opportunities for unemployed youths, artisans, trained professionals, skilled technocrats, and entrepreneurs by promoting and expanding permissible industries, professions, and the tertiary and service sectors within Delhi. It focuses on converting the energy of school and college dropouts into viable entrepreneurial ventures through skill formation and development.
Jurisdiction, Purpose, and Quantum of Assistance
The scheme provides financial aid in the form of loans for projects in:
- Secondary Sector: Tiny/Cottage Industries.
- Tertiary Sector: Trade, Transportation, Hostels, Restaurants (without liquor and meat), etc.
- Services Sector: As per the terms and conditions laid down by local bodies and the Delhi Master Plan.
Tenure of Loans and Repayment
- Repayment Period:
Loans are to be repaid in full within 5 years through equal quarterly installments. - Grace Period:
Recovery of the loan starts after a 12-month gap from the loan disbursement. Interest is recoverable from the first quarter on the disbursed amount. - Recovery Mechanism:
The borrower must provide post-dated cheques for each quarterly installment. In case of default, the Delhi Khadi & Village Industries Board is entitled to take legal action against the borrower and/or their sureties.
Rate of Interest
- The interest rate is as prescribed by the Government of NCT of Delhi and accrues from the date of disbursement for each installment.
- No interest subsidy is provided under this scheme.
Utilization of Loan
- The borrower must utilize the loan for the specified purpose within 3 months, with a potential grace period of up to 3 months granted by the Managing Director of the DKVI Board.
- After 6 months, if funds remain unutilized, the loan is considered misutilized, and recovery of the entire amount along with an 18% interest penalty may be initiated.
Security of Loan
- Applicants are required to furnish a surety/security provided by one Government Servant (either an employee of the GNCTD, its autonomous bodies, or a Central Government employee working in Delhi).
Area of Implementation
- The scheme applies to industrial or professional units set up anywhere within the NCT of Delhi.
- In residential or non-conforming areas, only those activities permitted under the Delhi Master Plan are eligible.
- For units in non-conforming areas, a No Objection Certificate (NOC) from the High Power Committee and a Municipal Corporation License (MCL) are required.
- For professional or commercial activities, applicants must also submit a registration certificate from the Municipal Corporation of Delhi (MCD).
Skill Formation and Marketing Support
The scheme emphasizes converting the energy of school and college dropouts by providing:
- Skill Formation: Training in basic skills, bookkeeping, marketing, product costing, and project financing.
- Marketing Support:
- Display of products in the Delhi Emporium.
- Cooperative stores (DSIIDC/Cooperative Stores) can market the beneficiaries’ products under their brand.
- Participation in trade fairs, especially in the Delhi Pavilion, and exhibitions organized by the Board or other government agencies.
- Issuance of certificates for market recognition.
Benefits
- Loan Quantum:
Loans up to ₹3,00,000 can be granted. - Subsidy:
The Government of Delhi provides a subsidy of 15% of the project cost, subject to a ceiling of ₹7,500 per entrepreneur.- Contribution:
Entrepreneurs must contribute at least 10% of the loan amount. For weaker sections (SC/ST/OBC/Physically Handicapped/Women/Ex-Servicemen), the contribution is only 5%. - For joint projects, the subsidy is calculated separately for each partner, capped at ₹7,500 per partner.
- Contribution:
- Adjustment:
The subsidy component is adjusted to the loan account two years after disbursement and is recoverable at an 18% penal interest rate if funds are misutilized.
Eligibility
Eligible applicants include:
- School/College dropouts.
- Individual entrepreneurs.
- Trade professionals.
- Artisans.
- Candidates who have completed technical/professional courses recognized by the Government without further training.
- Small-scale industrial units (with total investment within the prescribed ceiling) located in the NCT of Delhi.
Age Criterion:
Applicants must be between 18 and 50 years of age.
Exclusions:
No loan will be sanctioned if an applicant has already availed a loan for the same or similar purpose from any government or government-controlled financial institution and has not repaid it in full or if previous funds were misutilized.
Application Process
Offline & Online
-
Registration:
- Visit the official website.
- Register by filling in mandatory details (Aadhaar Number, Name, Email, Mobile Number, Date of Birth, and Password).
-
Application:
- Log in using your credentials.
- Complete the online application form with all mandatory details.
- Verify all details before submission.
- Submit the form.
Note: Applications are processed on a first-come, first-served basis.
Documents Required
- Copy of Electoral Card/Valid Passport/Aadhaar Card (Identity Proof).
- Two passport-size attested photographs.
- Education Proof.
- Worksite Details (Proof of Ownership/Possession, Rent Agreement, NOC from the Owner, Electricity Bill, etc.).
- Declaration in the prescribed format.
- Consent Letter of the Surety/Guarantor.
- Proof of Equity/Self Contribution.
- Electricity Bill (Residence).
- For shops/business/professions: Registration Certificate from the MCD.
- For industrial units in non-confirming areas: NOC from the High Power Committee (HPC) and Municipal Corporation License (MCL).
Frequently Asked Questions
-
What is the objective of the scheme?
To provide employment opportunities by offering financial assistance in the form of loans for setting up or expanding permissible industrial, professional, and service sector units in Delhi. -
Which department implements the scheme?
The scheme is implemented by the Delhi Khadi & Village Industries Board with support from the Government of NCT of Delhi. -
What are the benefits of the scheme?
It offers loans up to ₹3,00,000 with a government subsidy of 15% (subject to a ceiling), along with skill formation and marketing support. -
What is the minimum contribution required from the entrepreneur?
Entrepreneurs must contribute at least 10% of the loan amount, with a reduced contribution of 5% for weaker sections. -
Who is eligible to apply?
School/College dropouts, individual entrepreneurs, trade professionals, artisans, and candidates from technical/professional institutes; small-scale industrial units in Delhi are also eligible. Applicants must be between 18 and 50 years of age. -
What are the eligible projects under this scheme?
Projects in the secondary, tertiary, and services sectors, including tiny/cottage industries, trade, transportation, hostels, restaurants (without liquor and meat), and permitted professional activities. -
How much subsidy is provided by the government?
A subsidy of 15% of the project cost, capped at ₹7,500 per entrepreneur. -
Will any penalty be imposed if the loan amount is not utilized properly?
Yes, if the loan amount is not utilized within the stipulated period, it will be treated as misutilized, and the entire amount along with an 18% penal interest may be recovered. -
What is the tenure for loan repayment?
The loan must be repaid within 5 years through equal quarterly installments, with recovery starting 12 months after disbursement. -
What is the rate of interest on the loan?
The interest rate is as prescribed by the Government of NCT of Delhi and accrues from the date of disbursement of each installment. There is no interest subsidy. -
Within what time must the loan amount be utilized?
The loan must be utilized within 3 months, with a possible grace period of up to 3 months (subject to approval). -
Is security required for the loan?
Yes, applicants must furnish a surety/security provided by one Government Servant (from the GNCTD, its autonomous bodies, or a Central Government employee working in Delhi). -
Does the government provide marketing support?
Yes, beneficiaries receive marketing support including display of products at the Delhi Emporium, participation in trade fairs, and other promotional activities.