Deen Dayal Upadhyaya Swawlamban Yojana

Description
The scheme “Deen Dayal Upadhyaya Swavalamban Yojana” has been implemented by the Department of Finance, Planning & Investment, Government of Arunachal Pradesh, to promote entrepreneurship among unemployed youth by supporting viable, bankable self-employment projects. Through this scheme, loan support and capital subsidy are provided to eligible beneficiaries for establishing commercially viable enterprises. The scheme is implemented by the Department of Finance, Planning & Investment through District Level Screening Committees DLSCs in coordination with banks. The Arunachal Pradesh Innovation & Investment Park APIIP functions as an institutional facilitation and incubation partner for DDUSY. From the current implementation cycle onwards, the State Government has earmarked 50 fifty beneficiary quotas under DDUSY for APIIP. Under this arrangement, APIIP is authorised to identify and recommend 50 eligible startups that are selected under the Arunachal Pradesh Entrepreneurship Development Program APEDP for support under DDUSY. While DDUSY remains the financial support scheme providing subsidy and loan benefits, APIIP acts as a structured selection and incubation channel, ensuring that beneficiaries recommended under its quota are entrepreneurially trained, project-ready, and aligned with innovation and startup-led enterprises. Final financial assistance under DDUSY continues to be governed by DDUSY guidelines, bank appraisal, and compliance with eligibility conditions.

Exclusions
• The applicant cannot include the cost of land and building in the project cost for subsidy calculation.
• The applicant is ineligible for the annual interest subsidy if they become a Non-Performing Asset (NPA).

Benefits
• The applicant receives a 40% front-ended capital investment subsidy to eligible beneficiaries for setting up small and medium enterprises.
• The applicant can avail of a loan ranging from ₹10,00,000/- up to ₹50,00,000/- for the project cost, excluding the cost of land and building.
• The applicant (specifically women entrepreneurs) is eligible for an additional 5% interest subsidy annually, provided the entrepreneur does not become a Non-Performing Asset (NPA).
• The applicant is required to contribute at least 30% of the project cost as their own contribution.
• The applicant receives a loan component amounting to 30% of the project cost.
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Eligibility Criteria
1. The applicant must belong to Arunachal Pradesh.
2. The applicant must be an unemployed individual.
3. The applicant must be between 18 and 45 years of age.
4. The applicant must have a minimum educational qualification of Class XII passed or its equivalent (10+2).
5. The applicant must possess a bankable and viable project proposal in any of the following sectors:
6. - Food-processing units in agriculture, horticulture and allied sectors include packaging, cold chain, cold storage, milk processing, etc.
7. - Eco-tourism, including home stays and tour operators.
8. - Traditional textile weaving forthe modernisation of traditional looms and purchase of new looms to start a new weaving unit.
9. - To be set up Small-scale manufacturing units/bamboo processing units/service centres/ diagnostic
10. &gt; **Preference/Priority/Relaxation:**
11. The applicant will be given preference if they hold a Degree/Diploma in Tourism &amp;amp; Hospitality, Information Technology (IT), or from an Industrial Training Institute (ITI).
12. The applicant will be given preference if they contribute more than the minimum mandatory own contribution.
13. The applicant will be given preference for opening medical clinics or diagnostic centers in Border Community Development (CD) blocks.
14. The applicant will be given preference if the project is a manufacturing unit.
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Required Documents
• Proof of Identity
• Aadhaar Card
• Proof of residence
• Proof of business address
• No dues certificate from Arunachal Pradesh State Co-Operative Apex Bank
• Arunachal Pradesh Scheduled Tribe (APST) Certificate
• Trading License
• GST Certificate
• Bank account details for loan processing
• Business proposal document

Frequently Asked Questions
Q: What is the genesis of DDUSY?
A: The Government of Arunachal Pradesh launched this startup loan scheme to provide financial assistance via subsidies on loans. It was announced in the State Budget in March 2017 to promote entrepreneurship among unemployed youth through formal banking channels, utilizing the network of scheduled commercial banks across the State.
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Q: What is the objective of the scheme?
A: The scheme encourages unemployed youth to access low-cost capital for entrepreneurial ventures. It offers 40% front-ended subsidy on project costs from ₹10 L to ₹50 L. Women entrepreneurs get an additional 5% annual interest subsidy, provided the loan doesn’t become a Non-Performing Entity (NPE). Sectors supported include:

- Food processing (agriculture/allied)
- Eco-tourism (homestays, tour operations)
- Traditional textile weaving
- Small manufacturing/bamboo processing/service/diagnostic units
- Other innovative business ideas

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Q: Who is eligible?
A: Unemployed APST (Arunachal Pradesh Scheduled Tribes) entrepreneurs planning to set up new business enterprises are eligible for loans and subsidies.
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Q: Which institution provides loans?
A: Any branch of a Scheduled Commercial Bank in Arunachal Pradesh can provide the loan. The loan typically covers 30–50% of project cost (excluding land and building). Entrepreneurs must contribute 10–30% as their own margin; preference is given to higher contributions.
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Q: What is the interest rate?
A: Rates vary by bank. For State Bank of India (SBI), it’s approximately 3.25–3.50% above EBLR (about 7.55% currently).
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Q: What government support is available?
A: Government support includes a 40% front-ended capital investment subsidy under DDUSY. Women entrepreneurs also receive a 5% interest subvention annually, contingent on the account not turning NPE.
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Q: What is front-ended capital subsidy?
A: This means the subsidy amount is credited upfront to the loan account soon after loan sanction, helping early-stage cashflow.
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Q: What is the 5% interest subvention for women beneficiaries?
A: If the bank charges 12% interest, a woman entrepreneur would effectively pay 7% after the 5% subvention, in addition to the capital subsidy.
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Q: What is margin money/own contribution?
A: Applicants must contribute 10–30% of total project cost as their margin. Preference is given to those who contribute more.
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Q: How to apply?
A: Applicants must apply via the DDUSY online web portal and prepare a Concept Note/Detailed Project Report (DPR) for the enterprise they wish to establish, then submit it through the portal or the Deputy Commissioner’s Office.
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Q: How are applications processed?
A: 1. Scrutiny by District Planning Officer (DPO); CIBIL check by District Lead Bank Manager.
1. District Level Screening Committee (DLSC) meeting chaired by the Deputy Commissioner.
1. Eligible applicants present before DLSC; suitable projects are field-verified.
1. DLSC recommends projects to banks; banks evaluate and sanction viable loans.

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Q: What other schemes exist for projects up to ₹10 L?
A: Banks can sanction loans below ₹10 L under the Mudra Scheme; visit [www.mudra.org.in](https://www.mudra.org.in/) for details.
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Q: What security is required?
A: Loans are covered under CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises), so collateral is not insisted upon. If the borrower doesn’t want to bear the guarantee fee, collateral per bank norms is needed.
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Q: What is the repayment tenure?
A: Repayment depends on the activity and useful life of assets, not exceeding 7 years, including a moratorium of up to 6 months. Annual reviews are done.
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Q: How to get handholding support?
A: The Arunachal Pradesh Innovation and Investment Park (APIIP) in Itanagar provides resources and expertise for startups and new ventures under DDUSY.
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Q: Is plantation activity eligible?
A: No. Only value-addition activities under agri-horti and allied sectors are eligible.
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Q: How will banks claim the subsidy?
A: Banks scrutinise and sanction loans per their norms, then submit subsidy claims to the Planning &amp; Investment Division with relevant loan details.
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Q: Will government agencies prepare DPRs?
A: Applicants must prepare their own DPRs, but they can seek assistance from APIIP or district officials if needed.
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