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 KVIC (REGP) Scheme
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KVIC's Rural Employment Generation Program (REGP) -
Margin Money Scheme
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Eligible Projects
The Scheme is applicable to all New Village Industry Projects set up in "rural" areas. Any extension or renovation of existing unit will not be eligible for this facility. All activities which do not appear in the Negative List circulated by the KVIC are eligible for financing under the scheme. Sponsoring of Projects is not mandatory.
Any Village Industry including Coir Based projects (except those mentioned in the negative list) located in the rural area which produces any goods or renders any service with or without the use of power and in which the fixed capital investment per head* of a full time artisan or worker does not exceed Rs.1,00,000/- in Plain Areas and Rs.1,50,000/- in Hilly Areas. (* Capital Expenditure on Building/Workshed, Machinery & Furniture divided by Full Time Employment created by the project). Rural Area would mean any area classified as Village as per the revenue record of the State, irrespective of population. It also includes an area even if classified as town, provided its population does not exceed 20,000.
The KVIC would impart EDP Training to the beneficiary.
Eligible Borrowers
Only Individuals, Institutions, Co-Operative Societies, Trusts and SHGs (in selected states) are eligible under the scheme. Firms, Companies, Joint Ventures, Joint Borrowers, Co-Obligators, HUF are not eligible under the scheme.
Ceiling Limit on Project Cost
Rs.25 lacs per project. Cost of land should not be included in the project cost.
Borrower's Contribution
5% of project cost in case of SC/ST/OBC/Women/Physically Handicapped/Ex-Servicemen/Minority Community and other weaker section borrowers.
10% of project cost in case other borrowers.
Margin Money
For projects costing upto Rs.10 lacs KVIC releases margin money to the extent of 25%.
For projects costing above Rs.10 lacs, margin money released would be 25% upto Rs.10 lacs and 10% in respect of amounts thereafter. (This would be 30% and 10% in the case of SC/ST/OBC/Women/Physically Handicapped/Ex-Servicemen/Minority Community and other weaker section borrowers and those who are located in Hill Border and Tribal Areas, North Eastern Region, Sikkim, Andaman & Nicobar Islands, Lakshadweep).
If the borrower's contribution is more than what is stipulated under this scheme, the margin money released would be calculated on the actual bank loan availed plus own contribution.
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