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| MARGIN MONEY LOAN |
| Objective |
| The objective of the scheme is to assist deserving entrepreneurs in setting up small-scale industrial units by way of providing soft loan to raise the required equity insisted by the financing institutions. |
| Eligibility |
| Only newly registered SSI units are eligible for this scheme. Preference is given to tiny sectors, units owned by technocrats, women, handicapped persons, ex-service men and persons belonging to scheduled castes/tribes. Government co-operative societies and public limited companies are not eligible. |
| Limit |
| Margin Money Loan is given for both term loan and working capital loan. It is limited to 20% of the cost of project or of the total working capital requirement or 50% of the margin stipulated by the financing institution either for term loan or working capital loan, whichever is less. The maximum limit of margin money loan is Rs .25 million. The interest rate is 9% per annum. |
| Repayment |
| The loan must be repaid in 16 equal quarterly instalments. In the case of term loan the first instalment of repayment is due on three months after the date on which the last instalment of the term loan falls due / 51st month of the disbursement of the margin money loan whichever is earlier. In the case of working capital loan first instalment of repayment is due on completion of the 51st month from the date of disbursement. |
| Application |
| The application for margin money loan must be given to the General Manager, District Industries Centre, and should be applied with in one month from the date of availing first instalment of term loan or working capital loan from the financial institution. |
| Disbursement |
| Margin money loan is disbursed to the unit through the financial institution concerned. |
Application Form |
