Prime Minister Employment Generation Programme PMEGP

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Prime Minister Employment Generation Programme PMEGP Powered By Docstoc
					Scheme for Revival of Handloom Sector by waiver of overdues in the
Working Capital and Term Loans of Individual Weavers, Self Help
Groups (SHGs), Joint Liability Groups (JLGs), and Master Weavers

A centrally sponsored scheme of Ministry of Textiles, Govt. of India for the
revival of handloom sector to be implemented by the banks by 31.05.2012.

Nodal agency NABARD is the Nodal Agency for the implementation of the
                scheme by Banks/lending institution and CGTMSE.
Applicability   The scheme would be applicable in the States who have given
                letter of commitment / signed Memorandum of Understanding
                with Central Govt. and NABARD.
Eligible        Individual Weavers, Self Help Groups (SHGs), Joint Liability
beneficiaries Groups (JLGs), and Master Weavers.
Ineligible      a. State Handloom Development Corporations, corporates,
beneficiaries       partnership firms, weaver cooperative societies/any similar
                b. Loans restructured/rescheduled in the normal course by the
                    Bank in the past under any Govt. of India/State Govt.
                    scheme or under One Time Settlement of the Bank as per the
                    RBI guidelines, being covered under Securitization &
                    Reconstruction of Financial Assets & Enforcement of Security
                    Interest Act (SARFAESI) Act / other legal recourse by the
                    Bank as on the date of the scheme
                c. Beneficiaries of any Govt. sponsored schemes who have
                    misappropriated the funds.
Amount          100% of the principal and 25% of interest overdues in the loan
eligible    for account of the handloom weavers as on the date of loan
waiver/write becoming NPA and continues to outstand as on 31.03.2010 and
off by Govt. till date, subject to ceiling of Rs.50,000/- per individual, shall be
of India        waived by Govt. of India.
               Overdues exceeding the ceiling of Rs.50,000/- will have to be
               cleared by the weaver borrower.
Waiver/write 75% of the interest overdues, penal interest and other charges,
off by Bank    shall be waived by the Bank.
Grant       of a. Grant of fresh loan to the loan waiver beneficiaries is
Fresh    Loan     mandatory
to the loan b. Minimum loan amount: Rs.20,000/- (Beyond Rs.20,000/-,
waiver            need based)
beneficiaries c. Purpose of loan: To continue handloom weaving activity
               d. Rate of interest: As prevailing in the Bank
               e. Interest subvention of 3% from Govt. of India is available for
                  the first 3 years from the date of first disbursement. No
                  interest subvention would be available if the loan account
                  becomes non performing asset.
               f. Security: Assets created out of loan
               g. Service charges, insurance cover etc., shall be as per
                  prevailing guidelines of the Bank.
CGMSE cover a. The fresh loans granted by the Bank shall be covered under
                  Credit Guarantee Fund for Micro & Small Enterprises
               b. The Guarantee Fee and Annual Service Fee due under
                  CGMSE shall be paid by Govt. of India for a period of initial 3
               c. After 3 years, the CGMSE annual service fee has to be borne
                  by the weaver- borrower.
 Display     of   The list of beneficiaries under the scheme shall be displayed in
 the list of      the notice board by the branches. Any handloom weaver who is
 beneficiaries    aggrieved on the ground that his name has not been included in
 and              list, may make a representation through the branch from which
 Redressal of     he received the loan or directly to the Grievance Redressal
 grievances       Officer (GRO) at the Bank’s Circle Office concerned and every
                  such representation shall be disposed of within 30 days of
                  receipt thereof.

Conditions apply. The information provided above is only illustrative and not exhaustive.


For more details, please contact your nearest Canara Bank branch or E-mail to:

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