Personal Interest Subsidy Scheme

Description
Launched in the year 2016, the scheme "Personal Interest Subsidy Scheme" by the Uttarakhand State Khadi and Village Industries Board, Government of Uttarakhand, aims to support rural entrepreneurs in setting up industries based on the availability of local raw materials and their working/resource capacity. For this, assistance is provided for financing projects with a cost of up to ₹5.00 lakh through banks. Under the scheme, the entrepreneur is required to pay 4% interest on the bank-financed project cost, and the remaining interest, up to a maximum of 10%, is borne by the concerned department. The scheme is implemented by the District Village Industries Offices across various districts in Uttarakhand.

Exclusions
• Meat production or trade
• Intoxicating substances
• Khadi or Poly-based products
• Animal husbandry
• Horticulture
• Industries harmful to the environment

Benefits
• The project is financed up to a maximum cost of ₹5,00,000 through bank support.
• The entrepreneur is required to bear 4% interest on the bank-financed amount.
• The Government bears up to 10% of the differential interest amount over and above what the entrepreneur pays.

Eligibility Criteria
1. The applicant should be between 18 and 45 years of age.
2. The applicant should be a permanent resident of Uttarakhand.
3. The applicant should be an educated unemployed youth who is no longer eligible for government service due to the age limit. Or, the applicant should be trained by an Industrial Training Institute (ITI) or a Polytechnic.
4. The applicant should be a woman interested in self-employment.
5. The applicant should have passed Vocational Education (10+2 level) with Village Industries as a subject.
6. The applicant should establish the project in a rural area.

Application Process
Step 1: Step 1: Visit the Official Website:
Offline
Go to the official website of the Uttarakhand State Khadi and Village Industries Board.

Step 2: Step 2: Navigate to the Scheme Page:
Offline
From the homepage, click on the “Schemes” section in the menu and select “Personal Interest Subsidy Scheme”.

Step 3: Step 3: Download the Forms:
Offline
Download the following forms from the scheme page:
Application Form: Download Application Form (PDF)
Claim Form: Download Claim Form (PDF)

Step 4: Step 4: Fill and Submit the Forms
Offline
Fill in the required details in the Application Form and attach all necessary documents.
Submit the completed form along with documents to your District Village Industries Office.

Required Documents
• Passport Size Photo
• Permanent Residence Certificate
• Photo Identity Proof
• Address Proof
• Caste Certificate
• Project Report
• Certificate Issued by Village Head (as per prescribed format)
• Consent Letter from the Concerned Bank Branch
• Educational or Technical Qualification Certificates
• Affidavit on ₹20 Non-Judicial Stamp Paper

Frequently Asked Questions
Q: What is the name of the scheme that provides interest subsidy for rural entrepreneurs in Uttarakhand?
A: The scheme is called "व्यक्तिगत ब्याज उपादान योजना" (Personal Interest Subsidy Scheme) and is operated under the district plan by the Government of Uttarakhand.

Q: What is the main objective of the Personal Interest Subsidy Scheme?
A: The scheme aims to help rural entrepreneurs set up industries based on local raw materials and resource capacity by facilitating project funding through banks.

Q: Who implements the Personal Interest Subsidy Scheme in Uttarakhand?
A: The scheme is implemented by the District Village Industries Offices under the Uttarakhand State Khadi and Village Industries Board.

Q: What is the maximum project cost supported under this scheme?
A: The scheme supports projects with a cost of up to ₹5,00,000 through bank financing.

Q: Who has to bear the interest cost of the bank-financed project under this scheme?
A: The entrepreneur bears 4% interest, while the department covers the remaining interest up to a maximum of 10%.

Q: What is the age requirement to apply for this scheme?
A: The applicant must be between 18 to 45 years of age.

Q: Is it necessary to be a resident of Uttarakhand to apply?
A: Yes, only permanent residents of Uttarakhand are eligible to apply for this scheme.

Q: Can a government job aspirant whose age limit is over apply for this scheme?
A: Yes, educated unemployed youth whose age for government service has expired are eligible to apply.

Q: Can ITI or Polytechnic-trained individuals apply for this scheme?
A: Yes, candidates trained by Industrial Training Institutes (ITI) or Polytechnic institutions can apply.

Q: Are women who are interested in self-employment eligible?
A: Yes, women interested in self-employment are eligible under the scheme.

Q: Can vocational education pass-outs also apply?
A: Yes, candidates who have passed Vocational Education (10+2) with Village Industries as a subject are eligible.

Q: Is it necessary to set up the project in a rural area?
A: Yes, the project must be established within a rural area to qualify under this scheme.

Q: Are there any restrictions on the type of industries eligible?
A: Yes, industries involving meat, intoxicating substances, Khadi, poly, animal husbandry, horticulture, or those harmful to the environment are not permitted.

Q: Where can I get the application form for the scheme?
A: You can get the application form from the District Village Industries Office or download it from the official website: http://www.ukvib.org/details.php?pgID=sb_9

Q: Where do I submit my filled application form?
A: The application form should be submitted to the District Village Industries Office of your district.